---
title: "Losing councillors to share R300m in final round of gratuity payments"
description: "The government has set aside R300m to cushion unseated councillors in 2026 – a final round of golden handshakes reallocated from municipal infrastructure budgets amid sustainability concerns."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "LOCAL ELECTIONS 2026"
author: "Reitumetse Pilane"
author_url: "https://www.dailymaverick.co.za/author/reitumetse-pilane/"
canonical_url: "https://www.dailymaverick.co.za/article/2026-11-10-losing-councillors-to-share-r300m-in-final-round-of-gratuity-payments/"
published: "2026-11-10T21:25:37"
lang: "en-ZA"
word_count: 967
---

# Losing councillors to share R300m in final round of gratuity payments

> The government has set aside R300m to cushion unseated councillors in 2026 – a final round of golden handshakes reallocated from municipal infrastructure budgets amid sustainability concerns.

By Reitumetse Pilane · Published 10 November 2026, 23:25 SAST

## Key points
- Outgoing councillors who lost their seats in the 2026 local government elections are set to share R300-million in once-off gratuity payments.
- Qualifying councillors must have served at least 24 months; those completing a full five-year term can receive up to three months’ basic salary.
- The money was shifted from the Municipal Infrastructure Grant, raising questions about diverting funds from infrastructure to former office-bearers.
- The payment follows similar payouts after the 2011, 2016 and 2021 elections — but is expected to be the final round after the practice was deemed financially unsustainable.

## Content

The government has set aside R300-million for once-off gratuity payments to councillors who will not return to office following the 2026 local government elections, in what is expected to be the final round of payments under a practice dating back to 2011.

The Department of Cooperative Governance and Traditional Affairs (Cogta) will administer the payments to qualifying ward and proportional representation (PR) councillors, with the amount determined by their length of service and basic salary.

The allocation comes despite the [Independent Commission](https://www.remcommission.gov.za/) for the Remuneration of Public Office Bearers recommending in 2024 that the practice be phased out, citing concerns about its sustainability and the financial burden it places on the public purse.

National Treasury [shifted](https://archive.treasury.gov.za/documents/National%20Budget/2026/ene/Vote%2003%20Cooperative%20Governance.pdf)the R300-million allocation for the 2026 payments from Cogta’s Municipal Infrastructure Grant (MIG) allocation to its Local Government Operations and Support Programme.

The MIG is intended to support municipal infrastructure development, meaning funds were reprioritised from infrastructure to support councillors who have lost their jobs.

![Citizens vote at Mponegele Primary School during the 2026 Local Government Elections](https://cdn.dailymaverick.co.za/i/Gmtd9RzMZZiZkUw8ZGZDYFOUkP0=/200x100/smart/filters:strip_exif\(\)/file/attachments/orphans/oped-mpani-missingvoters_924961.jpg)

*Citizens vote at Mponegele Primary School during the 2026 Local Government Elections (LGE) on November 04, 2026 in Polokwane. (Photo: Gallo Images / Philip Maeta)*

### **How much will councillors receive?**

To qualify for the payment, councillors must have served a minimum of 24 months between 2021 and 2026.

Under the existing payment structure, councillors who have served for at least 60 months (a full five-year term) qualify for the maximum gratuity of three months’ basic salary, while those who served between 24 and 60 months receive a scaled-down amount based on their length of service.

The payment is calculated using a councillor’s basic salary rather than their full remuneration package. Benefits such as travel, housing, pension contributions, medical aid and sitting allowances are excluded.

[Cogta’s 2021 circular shows](https://www.cogta.gov.za/cgta_2016/wp-content/uploads/2021/10/06102021_DCoG-Circular-13-of-2021_Once-off-Gratuity.pdf) that a Grade 6 metropolitan mayoral committee member (MMC) who served for 50 months and earned a basic monthly salary of R60,000 qualified for a gross gratuity of R114,278.40.

However, the 2021 formula uses the number of months in that particular council term. The calculation for 2026 may therefore differ, and the example should not be taken as an indication of what individual councillors will receive this year.

![voting station in Alexandra township,](https://cdn.dailymaverick.co.za/i/teG2ROkDSEY6mw1gVwk4LLt54Qw=/200x100/smart/filters:strip_exif\(\)/file/attachments/orphans/Tumi-councillor-payout4_945270.jpg)

*An aerial photograph shows voters queuing outside a voting station in Alexandra township, Johannesburg, during the local government elections on 4 November 2026. (Photo: Felix Dlangamandla)*

### **History of the practice**

The once-off gratuity was introduced following the 2011 local government elections, after the Cogta minister and the South African Local Government Association (Salga) approached the remuneration commission for a similar payment to non-returning councillors.

According to the commission’s[2024 Consolidated Remuneration Review Report](https://www.remcommission.gov.za/sites/default/files/2024-10/The%20Commission%27s%20Consolidated%20Remuneration%20Review%20Report%20-%20GG%20no.%2051405.pdf), the payout was intended to cushion non-reelected councillors from the immediate loss of income. It provides a financial bridge, allowing former councillors to meet personal obligations while transitioning to new employment or accessing pension funds.

The commission initially supported the recommendation after receiving assurances from the minister of finance that the payment was affordable.

Since then, gratuities have been disbursed following the 2011, 2016 and 2021 local government elections.

[Media: "Chart: R300 million set aside for the last round of councillor exit gratuities"](https://charts.dailymaverick.co.za/chart/9715747673124eae03a6ab9d)

Approximately R139-million was paid to more than 4,000 applicants between 2011 and 2014,[according to the department](https://www.sanews.gov.za/south-africa/once-gratuity-payment-non-returning-councillors).

Following the 2016 elections, National Treasury made R309.3-million available over the Medium-Term Expenditure Framework for the payments. More than 5,500 applications were screened and identified as eligible.

After the 2021 elections, Cogta paid more than R225-million in gratuities to 4,696 non-returning councillors,[according to the department](https://www.cogta.gov.za/index.php/2022/02/23/update-on-the-once-off-gratuity-to-eligible-non-returning-councillors/).

### **Concerns over sustainability**

Despite initially supporting the gratuity, after the 2016 local government elections, the remuneration commission began questioning whether the practice was sustainable.

In its review, the commission acknowledged that the original recommendation had established a precedent and potentially created an expectation among councillors that they would receive the payment when leaving office.

However, it concluded that the model was not sustainable and should be reconsidered.

The commission maintained this position following the 2021 elections, when it said it could not, in good conscience, recommend another gratuity payment.

It cited financial constraints facing the public purse and argued that the expectation of receiving a termination bonus should be eradicated by making it clear that the practice was unsustainable and unjustifiable.

![Voters trickle into a voting station in Ivory Park,](https://cdn.dailymaverick.co.za/i/IJXH8mT31XWUEGOLdFlmzwLf_TA=/200x100/smart/filters:strip_exif\(\)/file/attachments/orphans/Tumi-councillor-payout3_872444.jpg)

*Voters trickle into a voting station in Ivory Park, Johannesburg, to cast their ballots during the local government elections on 4 November 2026. (Photo: Felix Dlangamandla)*

In its 2024 report, the commission recommended phasing out the gratuity, while recognising the expectation created by previous payments.

It recommended that qualifying councillors receive one final payment following the 2026 local government elections, after which the benefit should no longer accrue.

The 2026 allocation is expected to be the final round of payments before the practice is phased out from the 2027/28 financial year, in line with the commission’s recommendation.

At the time of publication, Cogta and Salga had not responded to Daily Maverick’s requests for comment on the gratuity payments and the concerns surrounding their sustainability.

### How much do councillors make?

Municipalities set councillor salaries in line with Cogta’s [upper-limit determinations](https://www.gov.za/sites/default/files/gcis_document/202602/54179gon7159.pdf). This year, they ranged from R1.65-million a year for the mayor of a metro to R290,653 for a part-time member of a Grade 1 municipality, which are small, local councils.

[Media: "Chart: Full-time councillor pay scales"](https://charts.dailymaverick.co.za/chart/281fbfdfa5e4672828ef3b9e)

[Media: "Chart: Part-time councillor pay scales"](https://charts.dailymaverick.co.za/chart/84b59c2a87569559de286d19)

Councillors’ salaries for the next financial year haven’t been determined yet, but on Tuesday, 10 November, President Cyril Ramaphosa announced that many public office-bearers will receive increases of between 3.5% and 4%.

Those receiving a 3.5% increase include:

- Members of the national executive;
- Members of the National Assembly;
- Permanent delegates to the National Council of Provinces;
- Premiers;
- Members of provincial executive councils; and
- Members of provincial legislatures.

Those receiving 4% include:

- Constitutional Court justices, judges of other courts and magistrates; and
- Traditional leaders, members of the national and provincial Houses of traditional and Khoi-San leaders. **DM**