South Africa’s state owned power utility, Eskom, has approved a 7 percent salary increment for all employees, effective July 1, 2026, following the conclusion of wage negotiations for the 2026 cycle under a three year agreement.
The deal was finalised through the Central Bargaining Forum and formally signed by the National Union of Mineworkers and Solidarity.
These unions represent more than 75 percent of workers within the bargaining forum, making the agreement binding on all employees in the unit, including members of the National Union of Metalworkers of South Africa.
Eskom noted that adopting a three year wage framework is expected to create greater stability and predictability, reducing the disruptions often associated with annual wage negotiations.
Commenting on the development, Group Chief Executive Mr. Dan Marokane said the agreement provides the utility with the operational certainty needed to focus on delivering its mandate and long term business objectives.
He emphasized that employees remain central to the company’s efforts to drive sustainable growth and position Eskom as a resilient organisation attractive to investors and partners.
Mr. Marokane added that continued collaboration with organised labour will be critical to advancing operational priorities, improving employee welfare, and supporting the company’s strategic transformation.
Also speaking, Chief People Officer Dr. Candice Hartley said the agreement will help employees remain focused on performance, accountability, and consistent service delivery, while also enhancing Eskom’s ability to attract new talent.
She noted that the wage deal aligns with the company’s cost discipline strategy, supported by the ongoing Cost Optimisation and Revenue Enhancement programme, which aims to deliver about R112 billion in savings over five years.
Eskom reaffirmed its commitment to maintaining strong relations with labour unions, stressing that collaboration remains essential to ensuring operational efficiency and the long term sustainability of the utility.
The company added that the partnership will support its core mandate of delivering safe and reliable electricity to South Africans.