Revealed: City of Joburg executives' soaring pay breaks the rules — while services collapse

Despite crippling service failures, City of Joburg executives are earning up to nearly R5-million a year – far above the national benchmarks prescribed for senior municipal managers.

An analysis of four years of the city’s own budget data shows that executive pay has continued to climb even as Joburg’s core services – electricity, water, and waste removal – have steadily deteriorated.

The biggest jumps were recorded among the municipal entities: the Johannesburg Social Housing Company (Joscho)’s CEO up 86%, Metrobus 75%, the Johannesburg Roads Agency 55%, City Power 61%, and the Johannesburg Development Agency 48%.

On average, executive pay across the city’s senior management has increased by around 26% since 2022, well above inflation and the 3.3% public-sector guideline.

An analysis of the City’s Medium-Term Budgets from 2022 to 2026 reveals that senior executives and heads of entities such as City Power, Joburg Water, Pikitup and the Johannesburg Roads Agency (JRA) have seen steady increases in their total remuneration packages, with several crossing the R4-million mark.

For context, President Cyril Ramaphosa’s salary is R4.2-million.

The Department of Co-operative Governance’s latest Gazette (Notice 4897 of 30 May 2024) sets an all-inclusive upper limit of R4,248,980 for a municipal manager and R3,399,184 for senior managers in Category 10 metros, including salary, benefits and bonuses.

Several Johannesburg entity executives are earning well above these benchmarks, although the city argues that its municipal-owned entities are not legally bound by the Gazette limits. The city insists the salaries are in line with the relevant legislation and regulations.

The city is currently collecting around 83% of billed revenue – well below its target of 94.7% – leaving it some 10-12 percentage points short of what it deems normal. For a metro of this size, this shortfall translates into a multi-billion-rand revenue gap that constrains service delivery.

Skewed performance structures

Julia Fish of the Johannesburg Civic Alliance said:

“What we are seeing in South Africa is state-led inflation. Many people, even in the private sector, are experiencing jobs and profits that have slowed, so they are not receiving annual inflation increases, while the public sector gets bonuses and increases regardless of the financial stability of a municipality due to skewed performance management structures.

“The tariffs, rates, and taxes of a city need to fund that every year, so we are seeing double-digit increases, making services unaffordable for residents.

“I think it is important to also add that while there is an allowance to pay at the upper limits because it is a large metro, in financial hardship there should be austerity on what the city can afford, not what it can get away with.

“Further, due to the siloed structure of the City of Johannesburg, we aren’t just dealing with the heads of departments, but heads of entities that operate like individual companies with boards, executives and multiple manager streams that duplicate work and structure.”

Strange and missing figures

Regarding management positions other than those in city entities – executive directors and senior managers reporting to the city manager, the city’s salary tables reveal more than just rising costs.

They expose a confusing pattern of missing posts, duplicated titles and erratic pay movements among the metro’s most senior managers.

A line-by-line analysis of the city’s Table SA23 remuneration data from 2021/22 to 2025/26 shows major disparities: sharp increases in some portfolios, steep declines in others and several inexplicable absences.

Compared with other Category A metros, Joburg’s executive count is elevated because it operates 13 municipal entities, each headed by its own CEO or managing director, on top of the city manager and senior directors.

Cape Town (1 entity), eThekwini (2), and Tshwane (2) have far fewer entity heads, so their total pool of top executives is smaller – even before you compare pay levels.

The parliamentary committee on cooperative governance and traditional affairs has confirmed that a review of metro executive pay is under consideration for 2025, following concerns raised by the Auditor-General and National Treasury about the misalignment between remuneration and results.

City’s official response

The City of Johannesburg insists all its remuneration practices “are in line with government policies, legislative and regulatory frameworks, and council-approved policies”.

City spokesperson Nthatishi Modingoane emphasised that salary determinations were not arbitrary, but followed established, nationally regulated processes designed to ensure consistency, equity, and accountability across the public sector.

The city says all salaries paid to senior managers are strictly aligned with national frameworks and legislative requirements. According to a statement in response to questions, the city said remuneration levels were based on the “Upper Limits of Total Remuneration Packages Payable to Municipal Managers and Managers Directly Accountable to Municipal Managers”, as determined annually by the Minister of Cooperative Governance and Traditional Affairs (Cogta).

“The salaries of senior managers are determined by the Minister of Cogta, and the figures are correct and in line with the upper limits applicable to the 2023/2024 financial year. The city does not pay any senior manager below or above the upper limits set by the minister,” said Modingoane.

For the 2023/24 financial year, the minister approved an overall increase of 3.3% for municipal managers and their direct reports.

As of November 2025, no new gazette has been issued for the 2024/25 cycle. The city said that these upper-limit adjustments were generally informed by the prevailing CPIX and other macroeconomic factors.

Regarding how salaries are set, the city referred to Section 10(1)–(3) of the regulations governing sections 54A and 56 employees (municipal managers and their direct reports).

The spokesperson said for non-section 54A/56 employees covered by the bargaining council, salaries started at the minimum notch of the advertised position, though candidates could negotiate upwards.

“The city’s remuneration unit reviews such counteroffers, taking into account the scarcity of skills, internal equity, the criticality of the post, experience, qualifications and competencies. Where justified, consideration may be given to a revised offer of up to 20% above the minimum notch or a percentage increase on the current remuneration,” Modingoane said.

‘Unsustainable costs’

DA councillor Christopher Santana, an alternate member on the Section 79 municipal public accounts committee, said: “The city currently operates 13 municipal entities, each with its own executive and board, alongside a central administration. This fragmented structure has created duplication of functions, blurred accountability and ballooning personnel costs.

“National Treasury has repeatedly warned that the city’s employee expenses are unsustainable, yet little has been done to address the structural inefficiencies that drive these costs. The Democratic Alliance is calling for a comprehensive institutional review of Joburg’s municipal framework, one guided by transparency, accountability, fiscal prudence and effective service delivery.

“Decisive action is needed to restore both fiscal and ethical integrity, ensuring that public resources serve residents rather than a privileged few.

“A robust review must realign the city’s structure, remuneration policies and performance standards to promote efficiency, accountability and public trust. Compensation should be sustainable, linked directly to the city’s ability to deliver essential services, and based on measurable improvements in performance and financial health,” he said. DM

Read the full list of the City of Johannesburg executive salaries: