Public servants to receive 4.7% wage increase

SA’s public servants are set to receive a wage increase of 4.7% on April 1, the department of public service & administration (DPSA) said.

This is in line with a wage deal signed by the employer and four unions at the public service coordinating bargaining council (PSCBC) in Pretoria on March 31, 2023. Employees set to benefit are not considered senior management.

The two-year pay deal translated in civil servants getting a wage increase of 7.5% during 2023/24 and projected consumer price inflation (CPI) for 2024/25. Core inflation, which excludes volatile food and energy prices, is expected to be 4.6% in 2024 after a reading of 4.9% in 2023, according to the SA Reserve Bank.

The announcement by the DPSA on Tuesday follows finance minister Enoch Godongwana’s tabling of his budget speech in February, in which he said R251bn will be used to fund salaries of civil servants such as teachers, health workers and the police.

“Considering the current economic climate and the need for fiscal discipline, the government will implement a 4.7% salary increment for public servants in 2024. This decision aligns with the commitment to affordable and accessible public services while recognising the hard work and dedication of public servants,” departmental spokesperson Moses Mushi said.

“The government has thoroughly considered various factors to strike a balance between meeting the needs of public servants and delivering efficient services. [DPSA] minister [Noxolo] Kiviet urged all public servants to continue delivering high-quality services, emphasising their essential role in the effective functioning of public institutions, and meeting the needs of citizens.”

Mushi said Kiviet stated the decision to implement the 4.7% wage increase reflected the government’s “commitment to fair compensation and the provision of quality public services. The government appreciates the hard work of public servants and will continue to prioritise their well-being”.

The two-year wage agreement was signed by the SA Democratic Teachers’ Union (Sadtu), Public Servants’ Association (PSA), National Professional Teachers’ Organisation of SA (Naptosa), and the Health & Other Services Personnel Trade Union of SA (Hospersa).

The National Education, Health and Allied Workers’ Union (Nehawu) and three other unions, the Police and Prisons Civil Rights Union (Popcru), the Democratic Nursing Organisation of SA (Denosa) and the SA Policing Union (Sapu) did not sign the wage agreement in protest over government’s decision to unilaterally implement a 3% wage increase for public servants in October 2022.

PSA’s Reuben Maleka said the union, which represents more than 245,000 of the 1.3-million public servants in the country, welcomed the 4.7% wage increase. While it would not make much of a difference, Maleka said it would help compensate for the “hardship faced by public servants”. Unions had been demanding above-inflation increases to cushion their members against the rising cost of living that has seen transport, fuel, energy, and food costs shooting through the roof.

Maleka said wage talks for 2025/26 would start in September. “We hope the realise will realise that the 4.7% increase is not adequate and put a meaningful offer on the table,” he said.

In his budget speech, Godongwana said the government was exploring others measures, which would be tabled for discussion in the PSCBC “as part of a broader discussion on containing wage bill growth”.

On the whole, the salaries of public service workers were projected to rise to just more than R822bn by 2027, from R721bn this year.

mkentanel@businesslive.co.za