Eskom salary increase brings a 7 percent annual rise for most workers in a three year deal, plus housing benefits and a one off payment

The recent eskom salary increase has been a significant topic in South Africa, with the state-owned power utility finalising a three-year wage agreement that will see most of its employees receive a 7% annual pay rise. This development follows extensive negotiations with major trade unions and comes amidst Eskom’s reported first annual profit in nearly a decade, offering a glimmer of stability for the parastatal after years of financial challenges and debilitating load shedding. However, not all unions are on board, with one major union rejecting the offer and threatening further action.

Key details of the eskom salary increase agreement

• Agreement Date: The wage agreement was formally concluded on Friday, 17 April 2026.
• Effective Date: The 7% annual salary increase will commence on 1 July 2026.
• Duration: This is a three-year wage agreement, providing labour certainty until June 2029.
• Parties Involved (Eskom): Eskom, South Africa’s state-owned electricity company.
• Parties Involved (Unions Accepting):
  • National Union of Mineworkers (NUM): Representing a large portion of Eskom’s workforce. Khangela Baloyi is the NUM energy sector coordinator.
  • Solidarity: Another significant union that signed the agreement. Gideon du Plessis is the Solidarity general secretary.
• Parties Involved (Union Rejecting):
  • National Union of Metalworkers of South Africa (NUMSA): Rejected the 7% offer and declared a deadlock on 10 April 2026, demanding an 8% increase for the first year. Irvin Jim is the NUMSA general secretary, and Wandisile Pram is their chief negotiator.
• Percentage Increase: A 7% annual salary increase for all employees within the bargaining unit. This comfortably exceeds the current national inflation rate, which is around 3%.
• Additional Benefits: The package also includes an increase in housing benefits and a once-off payment of R10,000 for employees for the first year of the agreement.
• Binding Nature: The agreement, signed by NUM and Solidarity (representing over 75% of the Central Bargaining Forum employees), is legally binding on all employees within the bargaining unit, including those affiliated with NUMSA, despite their non-signature.
• Context: This agreement comes after Eskom reported its first profitable year in nearly a decade and has managed to stabilise the national power grid, ending years of blackouts.

A full look at the eskom salary increase story

In a significant development for South Africa’s state-owned power utility, Eskom recently concluded a three-year wage agreement, largely settling the hotly debated eskom salary increase. The deal, finalised on Friday, 17 April 2026, guarantees a 7% annual salary increase for employees within the bargaining unit, effective from 1 July 2026, and running until June 2029. This multi-year approach is seen as a way to bring stability and predictability to the utility’s labour relations, moving away from the annual bargaining cycles that often led to tensions and potential disruptions.

The agreement was signed by two of the three major trade unions involved in the Central Bargaining Forum (CBF): the National Union of Mineworkers (NUM) and Solidarity. Together, these unions represent over 75% of the employees in the bargaining unit, making the agreement legally binding on all employees, even those not affiliated with the signatory unions. NUM’s energy sector coordinator, Khangela Baloyi, and Solidarity’s general secretary, Gideon du Plessis, confirmed their members’ acceptance of the offer after rounds of negotiations that began in October 2025.

However, the National Union of Metalworkers of South Africa (NUMSA) rejected Eskom’s final offer, declaring a deadlock on 10 April 2026. NUMSA, through its general secretary Irvin Jim and chief negotiator Wandisile Pram, demanded a higher 8% increase for the first year, arguing that Eskom is in a better financial position to afford it, especially considering its recent turnaround. Historically, NUMSA had accepted 7% increases even when Eskom was reporting substantial losses. The union has not ruled out the possibility of arbitration and even demonstrations to press their demands.

This positive outcome for the majority of Eskom’s workforce comes at a crucial time for the utility. After years of being plagued by financial losses, severe debt, and widespread load shedding that crippled South Africa’s economy, Eskom has recently reported its first annual profit in eight years. Furthermore, the company has managed to stabilise the national power grid, significantly reducing or ending nationwide blackouts. This improved financial and operational performance provided the backdrop for the wage negotiations, with unions arguing for their members to benefit from the turnaround. Eskom’s Group Chief Executive, Dan Marokane, emphasised that the agreement provides the stability needed to focus on business objectives and attract future partners.

The 7% annual salary increase is notable as it comfortably surpasses South Africa’s current inflation rate of approximately 3%. This means employees will see a real increase in their purchasing power, a welcome relief in the current economic climate. The agreement also includes adjustments to other allowances, such as housing benefits, and a once-off R10,000 payment for the first year. While the NUMSA deadlock remains a point of contention, Eskom maintains its commitment to ongoing engagement with all recognised trade unions. For more trending news and updates from South Africa, you can visit Student Portal’s trending section.

Questions and answers about the eskom salary increase

Here are some common questions a community member might have about the recent Eskom salary increase:

• When does the new Eskom salary increase come into effect?

  The new 7% annual salary increase for Eskom employees is set to come into effect from 1 July 2026.

• How long will this wage agreement last?

  This is a three-year wage agreement, meaning the 7% annual increase will be applied each year for three years, from July 2026 until June 2029.

• Did all the unions agree to the 7% increase?

  No, not all unions agreed. While the National Union of Mineworkers (NUM) and Solidarity signed the agreement, the National Union of Metalworkers of South Africa (NUMSA) rejected the 7% offer and declared a deadlock. They are demanding an 8% increase for the first year.

• Is the agreement binding even if a union didn’t sign it?

  Yes, the agreement is binding on all employees within the bargaining unit. Since NUM and Solidarity together represent over 75% of the employees in the Central Bargaining Forum, their signature makes the agreement legally binding for everyone, including NUMSA-affiliated members.

• Why did Eskom agree to such an increase now?

  This agreement follows Eskom’s recent financial turnaround. The utility reported its first annual profit in eight years and has also stabilised the national power grid, ending a long period of load shedding. This improved performance has likely given Eskom more flexibility in wage negotiations.

• Are there any other benefits included in the wage deal?

  Yes, in addition to the 7% annual salary increase, the agreement also includes an increase in housing benefits and a once-off taxable payment of R10,000 for employees for the first year.