The high court in Pretoria has ruled that the SA Revenue Service (Sars) must honour the last leg of a three-year wage deal signed with unions in 2019, a setback for one of the entities facing a funding shortfall as the Treasury trawls its coffers to make up for the mismatch between spending and revenue.

Dismissing Sars’ argument that it could not afford to do so because of the Covid-19 pandemic and low revenue collection, the court ordered it to pay the consumer price index (CPI) plus 2% salary increases to members of the Public Servants Association (PSA) and the National Education Health and Allied Workers Union (Nehawu), who together represent a majority of Sars employees...

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