Approximately 70 councillors in West Rand District Municipality (WRDM) have been freed after over 12 hours in the council chambers overnight.
Employees and the mayor, municipal manager and councillors came to an agreement on Thursday morning after several months of non-payment of salaries.
Workers were informed their salaries would be paid by midday on Thursday.
Gauteng MECs Jacob Mamabolo and Panyaza Lesufi travelled to Randfontein to intervene.
The lock-in started at around 2pm on Wednesday afternoon.
The Finance MMC says they need R30-million just to cover salaries, including other benefit obligations like medical aid and pension funds that have not been paid over the past couple of months.
The WRDM is one of the municipalities that invested millions in the collapsed VBS Mutual bank.