City of Tshwane denies R2 billion shortfall for employee costs

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

According to the city, the figure reflects the difference between an initial departmental request and the final approved allocation.

TSHWANE DENIES R2 BILLION EMPLOYEE-RELATED COSTS BUDGET SHORTFALL CLAIMS. pic.twitter.com/kpI7qKPeER — City of Tshwane (@CityTshwane) August 21, 2026 Group Human Capital Management initially requested about R15bln for personnel costs, but Group Financial Services approved approximately R13mln following affordability and budget scrutiny.

The city says the approved allocation is sufficient to meet anticipated employee-related expenditure and that it has not identified a material risk of overspending at this stage.

Tshwane City says that the R13bln allocation includes R229mln for filling vacancies and R362 mln for salary back-pay obligations during the financial year.

The difference between the initial request and approved allocation should not be interpreted as an unfunded liability or salary shortfall.

The city emphasises that employee-related expenditure will continue to be closely monitored to ensure personnel costs remain within the approved budget.

Should spending trends require additional funding, the city says this can be addressed through established processes, including the adjustments budget. -Reporting by Culvin Mabasa