The average Eskom annual salary increased by R300,000 in two years

Eskom employee benefits have increased by 37% over the last two financial years, representing an average increase of over R300,000 per employee.

This was revealed during a presentation made by Eskom in parliament before the Standing Committee on Appropriations on 24 March 2026.

The presentation showed that the total for employee benefits at Eskom had increased from R35 billion to R48 billion in the span of just two years.

This means the average payment package across the power utility’s roughly 42,000 employees now likely sits at over R1.1 million.

In a parliamentary Q&A, DA MP Andrew Gordon Bateman asked the Minister of Electricity and Energy, Kgosientsho Ramokgopa, to justify the substantial salary increases.

The minister responded with a multitude of reasons, the most notable of which were various incentives to reward Eskom’s employees for improved efficiency, productivity and performance.

This included the reintroduction of the Short-Term Incentive (STI) in FY2025, which Eskom’s employees had not received in six years due to poor performance and financial constraints.

The total Group STI scheme for 2025 amounted to approximately R4.2 billion, alongside another R1.2 billion in monthly production bonuses.

This created a total incentive package of R5.4 billion for Eskom employees in 2025, amounting to an average bonus of around R128,000 per employee for that year alone.

According to Ramokgopa, both of these incentives are completely self-funded through Eskom’s profits and in line with the Debt Relief Act.

Other reasons given by the Energy Minister to justify the increases included high overtime, skills recruitment, and the implementation of the 2022/23 multi-year wage agreement, among others.

“In summary, the increase reflects both contractual wage adjustments and deliberate capability strengthening to support operational recovery and system reliability,” Ramokgopa said.

Five of Eskom’s top executives also found themselves eligible for a total performance award payout of over R32 million at the end of March 2026, as per Eskom’s long-term incentive scheme.

Eskom hikes salaries amidst growing debt

Eskom’s decision to significantly increase remuneration for its employees through large bonuses has been called into question.

In a statement, DA MP Kevin Mileham described the performance incentive scheme as “unacceptable” at a time when South Africans face exorbitant electricity tariff increases.

This coincides with a significant decrease in the demand for the electricity generated by the state-owned utility, raising questions around how it can afford to pay out these bonuses.

“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 said.

“The Minister of Electricity and Energy must immediately intervene to halt these exorbitant payouts and redirect funds toward lowering the cost of electricity for struggling citizens.”

While the Energy Minister said the incentives were self-funded by Eskom, Mileham said this was false and that the bonuses were funded through the fiscus.

Additionally, he pointed to Eskom’s rising municipal debt as an area of concern with regard to the increase in employee benefits.

As of June 2026, South Africa’s municipalities reportedly owed Eskom a collective R111 billion in unpaid debt for the purchase of electricity.

Mileham called on Eskom to appear before the Portfolio Committee on Energy to justify the R800 million increase in production bonuses while its municipal debt continues to rise.

Additionally, he said the funds set aside for bonuses should be allocated to the over 8 million households which are eligible for Free Basic Electricity, yet do not receive it.

“Eskom’s so-called return to profitability is a statistical mirage,” Mileham said. “Without state intervention, Eskom remains technically insolvent.”

“Eskom cannot function as a private wealth fund for its employees while remaining a public burden on every South African taxpayer.”