Thousands of municipal workers in at least 69 municipalities across South Africa, including in KwaZulu-Natal, Free State, Northern Cape, North West, and Limpopo, have faced delayed or unpaid salaries after National Treasury withheld equitable share allocations in July 2026 due to financial governance failures, according to statements by the South African Municipal Workers’ Union (SAMWU) and reports from affected municipalities.

Union And Worker Outcry Over Financial Hardship

SAMWU has condemned Treasury’s decision, stating that the withholding of funds has directly led to salary delays affecting workers’ livelihoods. Dumisani Magagula, a SAMWU representative, said, “We demand urgent intervention by the president, the Cabinet, COGTA, and the relevant provincial governments, and of course, personal accountability for municipal officials and political office bearers responsible for financial misconduct rather than the collective punishment of workers and communities.”

Willem Koper, a municipal worker at Thembelihle Local Municipality in the Northern Cape, described the personal impact: “Personally, me also, I’m sitting with garnishee orders for not paying my debtors, you know. And then it is, there’s a bad reflection on my name.” Municipal workers have reported falling behind on bond repayments and experiencing damaged credit records due to the late salaries.

Provinces And Municipalities Affected

Six municipalities in the Free State have failed to pay employees’ salaries, as confirmed by multiple local reports. The Thembelihle Local Municipality in the Northern Cape explicitly notified employees that its inability to pay March salaries stemmed from non-receipt of equitable share funding, highlighting the extent of cash flow challenges. The effects of the funding freeze have rippled through smaller municipalities like Impendle in KwaZulu-Natal and several others in the North West and Limpopo, where similar financial distress has been reported by workers’ unions and local officials.

National Treasury initiated the freeze in July 2026 as a punitive measure against persistent governance failures and irregularities. This move has triggered sector-wide debates about collective punishment, with unions calling for the investigation and accountability of specific office-bearers rather than withholding essential worker incomes.

SAMWU’s leadership and affected workers continue to appeal for urgent national government intervention, warning that the continuation of withheld funds could deepen economic instability in local communities and erode public service delivery. Treasury has not yet announced a timeline for the resolution of the funding dispute.

The next developments will depend on whether the Presidency and Parliament respond to union calls and whether municipal governance reforms satisfy Treasury’s requirements for the resumption of fund allocations.