A deal is imminent in the crucial public sector wage negotiations. Public sector unions say they have begun drafting a new wage agreement with Government to be signed on Friday for the country’s 1.2 million civil servants.

Although the unions are not entirely satisfied with government’s final offer of a 1.5%  wage increase across the board, the proposal on the monthly cash gratuity is said to have clinched the deal.

Government first tabled a monthly cash gratuity of R978  a month; the unions demanded that it be increased to R1 500 a month.

Wage negotiations | Unions still mulling over government’s 1.5% formal offer:

Last week, government went beyond that and increased it to R1 695 a month for the lowest-paid employees.

 

On Tuesday the government formally presented its revised salary increase as a draft offer for unions to take back to their members to seek a mandate.

The National Treasury says the cash sweetener added to public servants’ salaries is going to cost an extra R18 billion in funds that have not been budgeted for.

Economists and rating agencies are closely watching the negotiations on public service salaries as the government is expected to contain its wage bill.