The Department of Provincial and Local Government has undertaken an investigation into high salaries of municipal managers and a decision on what steps would be taken to deal with the matter would be taken, says Provincial and Local Government Minister Sydney Mufamadi.

Speaking at a press briefing in Cape Town, the minister said he expected the report to be put on his desk next week. "After the studying the report we will then decide what steps need to be taken ... (as to whether) we need legislation or regulation on this issue."

This follows reports that some municipal managers are receiving more than President Thabo Mbeki, who receives an annual package of about R1 million including perks.

Finance Minister Trevor Manuel previously also expressed concern at the high level of salaries for some municipal managers and also the rising costs of municipal personnel costs.