Government employees will only receive marginal salary increases from government over the next three years.
The budget recommends growth in the wage bill by an average of 1.2%. The share of public-service wages sits at about 47% of government revenue in the 2020/21 financial year.
Government has warned that a departure from this in the forthcoming wage agreement would not be affordable and would compromise debt stabilisation.
Mboweni says public service wage negotiations are already under way.
“The Minister of the Department of Public Service and Administration Senzo Mchunu is working with our partners in organised labour to achieve a fair public sector conversation dispensation. When negotiations resume, following new multi-year settlements later this year, I know there are some, when they are not aware that conversations are taking place, they say that we are not telling the truth when we say that conversations are taking place. When you are not aware it doesn’t mean it’s not happening.”
Medium term spending plans and job creation.
The Minister Senzo Mchunu, is working with our partners in organised labour to achieve a fair public-sector compensation dispensation when negotiations on a new
multi-year wage settlement begin later this year. #RSABudget2021
— South African Government (@GovernmentZA) February 24, 2021
VIDEO, Budget 2021 delivered by Minister of Finance Tito Mboweni