The South African government has been paying out once-off gratuity payments to municipal councillors who lose their seats, with the total expenditure ranging from R300m to R350m after each local government election. This payment programme was created to help outgoing councillors adjust to life outside public office. The payments are calculated on a sliding scale, with councillors who have served more than 60 months during a five-year term receiving a once-off gratuity of three months' salary.
However, concerns have been raised about the programme's lack of accountability and the fact that councillors do not have to provide a record of honourable service to receive the payment. This has led to criticism that the programme rewards dishonourable politicians who are voted out of office. The issue has become more pressing in recent years, with a surge in dishonourable politicians exiting under controversial circumstances.
The remuneration system for elected public representatives has been criticized for being based on promotion rather than performance. Councillors have little incentive to look after their constituents and a big incentive to climb up the greasy pole. This has serious practical consequences, including a lack of accountability and a focus on personal gain rather than serving the public interest.
The 2025/26 Voter Participation Survey conducted by the Electoral Commission's research partner, the Human Sciences Research Council (HSRC), revealed a deeply concerning national trendline characterised by institutional erosion and citizen alienation. The survey cited a challenging pre-electoral climate observed in South Africa over the last 30 years. This trend has led to increased calls for reform and greater accountability in the use of taxpayer resources.
To address these concerns, there have been calls to review the once-off exit gratuity payment programme and introduce sifting measures that benefit only deserving councillors. One possible solution is to raise councillor salaries to reflect the realities of their work and the unique transition from public office back into outside formal employment, and then eliminate the once-off exit gratuity payment programme.
African National Congress Secretary General Fikile Mbalula has reflected on the party's poor performance in the local government elections, which will lead to some councillors losing their jobs. The issue of councillor remuneration and accountability is likely to become increasingly important in the lead-up to the next local government elections.
The review of the once-off exit gratuity payment programme is part of a broader effort to strengthen accountability by politicians in South Africa. The programme's reform is seen as crucial in restoring public trust and ensuring that taxpayer resources are used effectively and efficiently.
Key points
- The South African government has spent between R300m and R350m on once-off gratuity payouts for municipal councillors who lost their seats after each local government election.
