Public sector workers to get 7.5% base pay increment in South Africa

South Africa

Government initially started with 4.7% base pay increment, an offer which met an outright rejection by the Unions, currently moving around 7.5%

According to Eyewitness News EWN Publication ; Public service unions are close to clinching a two-year wage deal with government, following tumultuous negotiations at the Public Service Coordinating Bargaining Council (PSCBC).

The deal would include an average increase of 7.5% in the first year.

Disputes over the 2022/23 financial year were finally settled recently, paving the way for the current financial year to go ahead.

Talks at the bargaining council kicked off earlier in 2023 with calls for a 10% wage increase.

Government said that it wants to bring the salaries of public servants in line with the market.

Eyewitness News has seen a draft agreement that could see the conversion of the current non-pensionable cash allowance into a pensionable salary, estimated at an average of 4.2%.

This would then be lumped together with an additional 3.3% pensionable salary increase.

This amounts to an average of 7.5% for the 2023/24 financial year.

Public service salaries for the 2024/25 financial year will be hiked by a projected Consumer Price Index (CPI) capped at 6.5%.

The deal will only come into effect if it gets majority support from unions at the PSCBC.