Nurses in the public sector. Picture: DAILY DISPATCH
Nurses in the public sector. Picture: DAILY DISPATCH

The government and some public sector unions have reached an agreement, securing employees pay increases of 6% to 7% for 2018-19.

Although the deal was not supported by all the unions in the Public Service Coordinating Bargaining Council (PSCBC), it has amicably concluded the talks which started eight months ago.

The parties have agreed wages would increase by consumer price index (CPI) plus 1% to CPI for the successive two years.

The unions were demanding CPI plus 2% for the lowest levels and CPI plus 1% for the highest, while it set its CPI calculation at 5.5%.

The deal also comes with extra hikes for educators and police officials among others who will benefit from the equalization of pay progression across the public service at 1.5% per annum.

Meanwhile, on housing, the delinking of allowances for spouses of employees on level 1 to 5 will start in September and twelve months later for employees on level 6 to 12.

Both spouses in a couple are now eligible to receive a housing allowance which amounts to over R1000 and will be adjusted in line with the CPI annually.

The increases that will be backdated to 1 April exceed the 7.3% that was pencilled in for wage increases during this year’s budget.

The PSCBC’s general secretary, Frikkie De Bruin described the wage negotiations as a "very tedious process" and thanked parties for reaching an agreement despite the prolonged period and challenges they faced.

The draft agreement that was seen by Business Day made no mention of medical aid increases, except the inclusion of a clause on the creation of a benefit product for members on levels 1 to 5.


SALARY ADJUSTMENTS

1 April 2018 to 31 March 2019
Salary Level 1 to 7 = 7%
Salary Level 8 to 10 = 6.5%
Salary Level 11 to 12 = 6%

1 April 2019 to 31 March 2020
Salary Level 1 to 7 = Projected CPI plus 1%
Salary Level 8 to 10 = Projected CPI plus 0.5%
Salary Level 11 to 12 = Projected CPI

1 April 2020 to 31 March 2021
Salary Level 1 to 7 = Projected CPI plus 1%
Salary Level 8 to 10 = Projected CPI plus 0.5%
Salary Level 11 to 12 = Projected CPI

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