Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

Consolidated Annual Financial Statements for the year ended 30 June 2025

NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

27. Staff costs

Group

Rand Water

Figures in Rand thousands Non-executive Board members

Note(s)

2025

2024

2025

2024

34.2; 34.4

9 946

10 563

8 830

9 026

9 946

10 563

8 830

9 026

Salaries

2 138 791

2 006 530

2 117 152

1 986 522

Contributions to defined contribution plan

224 452

228 811

224 452

228 811

Other staff costs

1 590 445

1 353 548

1 583 161

1 346 516

Subtotal

3 963 634 3 599 452 3 933 595 3 570 875

Transfer to projects

(299 806) (1 184 534)

(273 801) (1 085 343)

(299 806) (1 184 534)

(273 801) (1 085 343)

Transfers to cost of sales

Net staff costs

2 479 294 2 240 308 2 449 255 2 211 731

Other staff costs comprise of accrual for incentive bonus, non statutory overtime, leave pay, allowances, employer contributions and include the post retirement medical aid benefit current service costs of R5.4 million (2024: R6.4 million). Transfers to projects of R300 million (2024: R274 million) represents labour charge outs for temporary and permanent employees to capital and recoverable projects. Transfers to cost of sales of R1 185 million (2024: R 1 085 million) represents direct labour charges for the production of potable and non-potable water recognised directly in cost of sales (see note 24).

28. Depreciation

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Depreciation recognised in other expenses Depreciation recognised in cost of sales Depreciation for the year excluding impairment Impairment of property, plant and equipment

116 213 586 545 702 758

98 237 559 413 657 650 23 287 680 937

116 777 586 545 703 322

98 799 559 413 658 212 23 287 681 499

167

167

702 925

703 489

Depreciation recognised in cost of sales consists of the depreciation costs for property, plant and equipment that are utilised directly in the production of water which includes the abstraction, purification, pumping and distribution processes. Depreciation recognised in other expenses consists of the depreciation costs for all other property, plant and equipment utilised in support and administration processes (see note 4 and note 24 respectively).

287

Rand Water | Integrated Annual Report 2025