Workers in the South African footwear sector have settled on a 7.5% pay rise for this year, with the sector becoming the latest to resolve a national wage dispute.

The Southern African Clothing and Textile Workers' Union (SACTWU) said the agreement was reached under the auspices of the national leather manufacturing bargaining council.

The wage rise will be backdated to the first pay week in July this year and 8000 employees in the sector are set to benefit.

Earlier this month a pay deal was also reached with employers in the cotton textile sector to give workers a 6.75% wage rise. The agreement also provides for the introduction of service allowance.

But talks between clothing companies and unions have become increasingly tense.