The government has sweetened its 2023/2024 wage offer increase for 1.2-million public servants to 7%, raising the prospect of clinching a pay hike deal, and throwing into doubt the credibility of the Treasury’s commitment to keeping a lid on spending of R700bn-plus on salaries.

The offer, which is an improvement on the initial pay increase proposal of 4.7%, is not far from an 8% demand from union leaders representing teachers, nurses and other public servants. They initially demanded a 10% pay hike...

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