Morbidity and mortality contributes both directly and indirectly to the municipal wage bill. There is an opportunity cost to this additional spending, which could otherwise be directed to more productive municipal activities.
The present value cost of a new HIV/AIDS infection is roughly twice the annual salary of the employee;
The annual cost of HIV/AIDS in the workplace is 1-2% of the wage bill.
Disease undermines the capacity of the municipality to deliver services through increased absenteeism, lower productivity, and the loss of experienced and knowledgeable staff.