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Economy

SA government tables new wage offer for public sector workers

Date: Jan 21, 2025

The South African (SA) government has presented a revised wage offer of 5.5% for public sector workers, following a series of negotiations with labour unions.

The new proposal was tabled at the Public Service Coordinating Bargaining Council after the initial offer of 5% was rejected by the workers. The unions had initially demanded a 12% increase, which was subsequently revised down to 6%.

The new offer will now be taken into consideration by the workers. The wage increase is set to take effect in the 2025/2026 financial year, with an additional adjustment in the 2026/2027 financial year based on the Consumer Price Index (CPI). If the CPI falls below 4%, the increase will be deemed to be 4%.

Cosatu Convenor Simon Hlungwani elaborated on the offer, stating, "The financial year that we are coming to is 2025/2026 with a 5.5% increase, and then 2026/2027 will be based on the CPI, which is capped at 4% if the CPI is below that. This offer has the concurrence of the treasury and is already included in the budget. We hope that when the minister addresses this issue, it will be confirmed, and we do not expect the government to renege on this agreement."

--SABC/ChannelAfrica--