South Africa

R140 billion public sector wage showdown

The South African government rejected an opening demand by public-sector workers for a 12% pay increase as unaffordable.

Instead, the state offered a 3% raise, Frikkie de Bruin, general secretary at the Public Service Co-ordinating Bargaining Council said by phone Wednesday.

The proposal by workers would require R140 billion and be “totally out of budget,” he said.

The government told labour unions representing state workers to “go and reconsider and relook at the position and at the demands in terms of where is it we can maybe follow a different approach,” De Bruin said.

Talks are scheduled to resume in October and run through to the middle of the month, ahead of Finance Minister Enoch Godongwana’s mid-term budget update, expected on October 30, he added 

The state’s offer is below South Africa’s rate of inflation, which slowed to 4.6% in July from 5.1% in June. Still, price pressures are expected to cool further, with the central bank forecasting a slowdown to 4.3% in the final quarter of 2024 and averaging 4.4% next year.

The Public Servants Association of South Africa, which represents about 242,000 workers, rejected the state’s counter offer and will formally decline it on Friday, according to spokesman Claude Naicker. 

In addition to the 12% increase in the 2025-26 financial year, public servants are seeking a R2,500 increase in their housing allowance. They’ve also called for a danger allowance to be raised to R1,000 from the R597.

Newsletter

Top JSE indices

1D
1M
6M
1Y
5Y
MAX
 
 
 
 
 
 
 
 
 
 
 
 

Comments