EDITORIAL: Higher pay, low value for South Africans
08 July 2021 - 05:00
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Public Servants Association members demand higher wages during a march in Johannesburg. Picture: SIMPHIWE NKWALI
It may vindicate the cynics, but there’s little to cheer about in the fact that the state has failed to hold the line on public sector wage increases.
This week, it emerged that the government has caved in, and has agreed to offer a wage increase of 1.5% and a monthly R1,000 cash allowance to civil servants. It might not sound like much — until you consider that it will cost taxpayers an extra R18bn. For the lowest-paid public servants, this increase will result in an 11.7% wage rise.
This is disturbing for a number of reasons. First, besides debt, the public sector wage bill is one of the fastest-growing line items in the government’s budget — but neither is to the benefit of the productive economy, where funding for infrastructure and growth is starved to placate the demand for higher salaries.
That it will go to SA’s 1.2-million full-time public servants — 684,313 of whom were on "leave" during the level 3 lockdown last year — is just as disturbing. Many of these officials are part of a municipal apparatus that has comprehensively failed the country, as the auditor-general’s report makes clear. South Africans, in other words, aren’t getting value for their salaries, yet we are paying more. It is an untenable equation that bodes ill for SA’s ability to unleash the growth needed to assist everyone — not just those in the state’s employ.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
EDITORIAL: Higher pay, low value for South Africans
It may vindicate the cynics, but there’s little to cheer about in the fact that the state has failed to hold the line on public sector wage increases.
This week, it emerged that the government has caved in, and has agreed to offer a wage increase of 1.5% and a monthly R1,000 cash allowance to civil servants. It might not sound like much — until you consider that it will cost taxpayers an extra R18bn. For the lowest-paid public servants, this increase will result in an 11.7% wage rise.
This is disturbing for a number of reasons. First, besides debt, the public sector wage bill is one of the fastest-growing line items in the government’s budget — but neither is to the benefit of the productive economy, where funding for infrastructure and growth is starved to placate the demand for higher salaries.
That it will go to SA’s 1.2-million full-time public servants — 684,313 of whom were on "leave" during the level 3 lockdown last year — is just as disturbing. Many of these officials are part of a municipal apparatus that has comprehensively failed the country, as the auditor-general’s report makes clear. South Africans, in other words, aren’t getting value for their salaries, yet we are paying more. It is an untenable equation that bodes ill for SA’s ability to unleash the growth needed to assist everyone — not just those in the state’s employ.
Cash sweetener for public servants to cost R18bn
Lowest-paid public servants get offer of effective 11.7% pay rise
Yes, state coffers can afford weekend jabs
Municipal charges soar as service sinks deeper
ROB ROSE: ‘Extortionate’ rate hikes push SA to the brink
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