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Civil servants will receive a 4.7% salary hike from April 1, the Department of Public Service and Administration confirmed on Wednesday.
This is in line with a two-year wage deal signed by a narrow majority of public sector trade unions in March last year.
The deal guaranteed a wage increase of 7.5% for 2023/24 and an inflation-linked wage hike for 2024/25.
The inflation number for the 2024 wage increase is based on the projected consumer price inflation for the coming 2024/2025 fiscal year (April to March), and not the 2024 calendar year, Department of Public Service and Administration spokesperson Moses Mushi told News24.
Inflation averaged 6% in the 2023 calendar year, and the SA Reserve Bank expects it to average 5.0% in 2024. But, using the Reserve Bank's quarterly forecasts for the fiscal 2024/2025 year (from the second quarter of 2024 to the end of the first quarter of 2025), the average forecast rate is just below 4.6%.
This is lower than the 4.7% that civil servants will receive.
In addition, qualifying civil servants – including the lowest-paid employees as well as those who received a satisfactory performance rating – will also receive a "pay progression" increase of 1.5% from July.
"Pay progression is separate, as per the current dispensation of various sectors," said Mushi.
But, effectively, most civil servants who are not senior managers and on salary levels 1 to 12, will receive the 4.7% increase plus the pay progression (1.5%) by July.
The public sector wage bill remains the government's biggest expenditure, growing by about 40% in real terms over the past 14 years. This has largely contributed to government's current gross loan debt as a percentage of GDP ballooning to 74% - the highest since 1947. One out of every five rands earned from tax is now spent on debt payments.
"The government prioritises fair and competitive compensation for public servants to attract and retain talented individuals dedicated to serving the nation," Public Service and Administration Minister Noxolo Kiviet said in a statement.
Kiviet said the decision to implement a 4.7% salary increment reflects 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."
