Eskom pays its employees R5.4 billion in bonuses as electricity prices surge

Eskom’s decision to pay its employees R5.4 billion in bonuses has come under fire as households and businesses face increasing pressure from rising electricity prices. 

The Democratic Alliance (DA) has gone so far as to call this a “betrayal”, as the bonuses are funded, in part, by above-inflation electricity price hikes. 

“While South Africans buckle under double-digit electricity increases and rising inflation, Eskom has rewarded its staff with over R5.4 billion in performance incentives,” DA spokesperson on electricity and energy Kevin Mileham said. 

“A state-owned utility that only achieved an artificial profit of R23.9 billion thanks to a R64 billion taxpayer-funded debt relief package has no business siphoning off billions for bonuses.”

Mileham argued that the bonus payouts show a stark disconnect between operational reality and executive reward, as the performance does not warrant such incentive payments. 

Eskom achieved an energy availability factor of 60.6% in the 2025 financial year, which Mileham said is below international standards.

Despite this, Eskom allocated –

• R4.2 billion towards the Group Short-Term Incentive Scheme
• R1.2 billion in monthly production bonuses, a 200% increase from R0.4 billion in 2024

In total, this amounts to R5.4 billion in bonuses, or an average bonus of over R128,000 per employee. 

“This R5.4 billion is not ‘self-funded’ excellence. It is a transfer from the national fiscus directly into the pockets of Eskom employees,” Mileham said. 

“Meanwhile, Eskom’s headcount grew by 1,405 people year-on-year to 42,030, an inexplicable expansion for a utility of this size and financial fragility.”

Mileham also took issue with Eskom’s reported profit of R23.9 billion, which he described as a “mirage” given the R64 billion in government support the utility received in 2025. 

Furthermore, the utility is struggling to find a solution to rising municipal debt owed to it, which has the potential to offset any benefit from Eskom’s latest debt-relief package from the state. 

Performance incentives costly, but necessary

Eskom has pushed back, saying the bonuses are part of existing performance agreements, which have played a key role in helping bring load-shedding to an end. 

Energy expert and EE Business Intelligence managing director Chris Yelland explained that such payouts are always tricky for the utility. 

This is because they are necessary to motivate employees, improve staff morale, and tie financial benefits to operational performance.

However, it is also a tough pill to swallow for South Africans who bear the brunt of rising electricity prices and multiple taxpayer bailouts of Eskom. 

“It is always difficult. Workers do have the expectation that things have improved, and they are part of the solution. Thus, they deserve a salary increase and bonus, especially in the light of Eskom’s improved bottom line,” Yelland told Cape Talk. 

“That is one of the realities of doing business. Labour will push for the biggest increase and bonus they can get, with management having to try to moderate that within the realities of the business.” 

Yelland explained that much of his issue with the bonus payment stems from the assumption that Eskom is single-handedly responsible for ending load-shedding.

“I am not saying they do not deserve any credit. There has been an improvement in plant performance that contributed to the end of load-shedding,” Yelland said. 

“But, not enough credit is given to the other factors at play that have been very helpful in the reduction of load-shedding.” 

This includes the private sector’s investment in alternative energy generation, which has reduced Eskom’s burden and enabled it to conduct intensive maintenance. 

A major hidden factor is the changing nature of South Africa’s economy, which has become significantly less energy-intensive over the past two decades. 

This has been accelerated by load-shedding and Eskom’s substantial price increases, which have encouraged users to become more energy-efficient, seek alternatives, or, in extreme cases, shut down. 

“There has really been a lot of demand destruction over the past decade. Not least of all from the smelting industry, which has largely shut down,” Yelland said. 

“Part of the solution has been the destruction of demand, which is not something we should welcome. The high prices of electricity have devastated South African industry.” 

Yelland noted that Eskom employees, on average, are paid extremely well relative to other South Africans, making the issue of bonuses even more severe. 

MyBroadband calculated that the minimum monthly salary of a unionised employee at Eskom is R19,768.

These workers include basic labourers and artisans as well as more experienced and skilled engineers and technicians. Middle management, executives, and board members are not part of this cohort.