South Africa’s state power utility Eskom has concluded a three-year wage agreement granting employees a 7% annual salary increase, effective from July 2026. The deal, announced on April 17, 2026, applies to workers within the utility’s central bargaining unit and follows months of negotiations with labour unions, as reported by Reuters.
The agreement was secured after two major unions, the National Union of Mineworkers and Solidarity accepted the offer, giving it majority backing. However, the National Union of Metalworkers of South Africa rejected the deal, demanding an 8% increase in the first year and signalling potential arbitration or industrial action.
The 7% annual increase exceeds South Africa’s current inflation rate of around 3%, although inflation could rise to about 4% due to global oil price pressures linked to geopolitical tensions. The structure mirrors Eskom’s previous three-year wage agreement signed in 2023, which also delivered similar annual increases.
The deal comes as Eskom shows signs of operational and financial recovery after years of losses and power cuts, including reporting its first full-year profit in eight years and halting nationwide blackouts. The agreement is expected to provide labour stability, allowing the utility to focus on sustaining performance gains while navigating ongoing cost pressures in Africa’s most industrialised economy.
