Tshwane rejects R2 billion employee costs shortfall claims

The City of Tshwane has rejected claims that its 2026/27 financial year budget has a R2 billion shortfall in employee-related costs.

The municipality said the alleged shortfall is based on a comparison between an initial personnel cost requirement submitted by Group Human Capital Management (GHCM) and the amount ultimately approved through the city's formal budget process.

According to Tshwane, GHCM initially submitted a personnel cost planning requirement of approximately R15 billion during preparations for the 2026/27 Medium-Term Revenue and Expenditure Framework (MTREF).

The proposed amount represented an increase of about R3 billion from the previous financial year.

Following the city's budget scrutiny and affordability assessment, Group Financial Services approved an employee-related cost budget of approximately R13 billion, using the 2025/26 adjustments budget as the baseline.

Tshwane said the approved allocation provides for anticipated employee-related expenditure during the 2026/27 financial year.

The allocation includes R229 million for filling vacancies and R362 million for salary back-pay obligations.

The municipality said the difference between an initial departmental planning requirement and the final approved allocation should not be interpreted as an unfunded liability or a R2 billion salary shortfall.

“Budget proposals are subject to assessment, prioritisation and affordability,” the city said.

Tshwane added that its current assessment does not indicate an inability to meet its salary obligations.

Based on actual employee-related expenditure during the 2025/26 financial year and spending recorded during the first month of 2026/27, the municipality said it has not identified a material risk of overspending on employee costs at this stage.

Employee-related expenditure will continue to be closely monitored to ensure personnel costs remain within the approved budget and do not place undue pressure on resources required for service delivery.

The city said that should expenditure trends require additional provision during the financial year, the matter would be addressed through established budgeting processes, including the adjustments budget process where appropriate.

Tshwane said the adopted 2026/27 MTREF remains its approved financial framework, with Group Financial Services and GHCM working together to manage employee-related expenditure prudently and in line with available resources.

The municipality reaffirmed its commitment to responsible and transparent financial management and urged the public to distinguish between preliminary departmental funding requirements and allocations ultimately approved through the formal budget process.

The city said it would continue providing factual information about its financial position as it manages employee costs and protects resources needed for service delivery.