e r 2 - Umgeni Water

| Financial Plan Chapter15.2.2 Staff CostsTable 15.2: Staff CostsActual Budget ForecastAnnual Salary Increase F'08 F'09 F'10 F'11 F'11 F'12 F'13 F'14 F'15 F'16Basic pay (% increase) 7.2% 12.0% 9.0% 7.8% 8.0% 8.3% 7.9% 7.9% 7.7% 7.6%[Based on nominal wage rate forecast by BER]Staff Complement (No.)Permanent Staff 724 733 771 841 734 734 734 734 734 734Contract Staff - General 51 66 30 22 27 27 27 27 27 27Contract Staff - Recoverable 10 10 29 29 21 21 21 21 21 21Trainees 14 16 15 18 16 16 16 16 16 16Sub-Total 799 825 845 910 798 798 798 798 798 798Vacancies - budgeted - - - - 56 122 122 122 122 122Sub-total 799 825 845 910 854 920 920 920 920 920Vacancies - not included in forecast - - - - 60 - - - - -Total establishment 799 825 845 910 914 920 920 920 920 920Staff Costs (R'000)- Direct staff costs 79 497 82 666 92 618 104 436 101 731 118 896 128 289 138 424 149 083 160 413- Total Indirect staff costs 118 658 142 960 163 864 212 271 192 732 229 668 247 811 267 388 287 977 309 864- Indirect staff costs 79 948 99 715 114 995 212 271 140 573 167 683 180 929 195 223 210 255 226 234- Maintenance Payroll 38 710 43 245 48 869 - 52 159 61 985 66 882 72 165 77 722 83 629Payroll costs 198 155 225 626 256 482 316 707 294 463 348 564 376 100 405 812 437 060 470 276- Less WIP Recoveries - F13 onward (2% of capex WIP) (3 637) (8 806) (11 998) (18 756) (7 698) (8 545) (10 967) (12 558) (13 801) (14 099)Total staff costs 194 518 229 384 260 517 297 951 286 765 340 019 365 134 393 254 423 259 456 177- % Increase before recoveries 14.4 13.9 13.7 23.5 14.8 18.4 7.9 7.9 7.7 7.6- % Increase after recoveries 13.0 17.9 13.6 13.6 10.1 18.6 7.4 7.7 7.6 7.8- Average pay 248.0 273.5 303.5 348.0 344.8 378.9 408.8 441.1 475.1 511.2- % increase average pay - 10 11 15 14 10 8 8 8 8Productivity - kl'000 per employee 505.32 504.19 503.96 468.11 453.59 449.90 450.30 455.47 462.31 469.24Retirement benefit costs(included in other operating costs) R'000- Post-retirement medical aid 31 646 24 640 27 646 25 000 27 888 25 319 15 000 5 000 5 000 5 000- Pension top up 14 044 13 422 4 990 27 125 9 223 20 493 5 000 5 000 5 000 5 000- Pension - cost of conversion DB to DC - - - - - 36 000 46 000 - -Total retirement benefit costs 45 690 38 062 32 636 52 125 37 111 45 812 56 000 56 000 10 000 10 000- % Increase 10.6 7.4 10.3 18.7 13.7 23.4 50.9 22.2 (82.1) -Umgeni Water Five-Year Business Plan | 2011/2012 to 2015/2016 Page 81