Source: SAnews
FEATURE
G
6.8 % average growth in non-interest expenditure. This trend crowded out other spending items like goods and services, with a concomitant impact on service delivery. “The decision to not
overnment
stakeholders to engage
Treasury, the 2021 wage
implement the final
departments are
on building a sustain-
agreement awarded em-
leg of the 2018 wage
working together
able public service and
ployees a non pension-
agreement and other
to ensure that the public
remuneration guide-
able cash gratuity.
measures to reduce
sector wage bill remains
lines,” he added. The Minister stressed
“In the absence of
average wage costs
a new agreement,
have improved the wage
that government is
the same gratuity will
trajectory.
document, National
committed to control-
be paid in 2022/23,
Treasury states it “is
ling those parts of the
and provision for this
bill growth is projected
working with the De-
budget that are perma-
is made in the 2022
to be much lower than
partment of Public Ser-
nent in nature, including
Budget.”
the original trend. This
vice and Administration
by arresting historically
to keep the compensa-
rapid increases in the
in previous budgets did
the gap between rev-
tion baseline within
public sector wage bill.
not fully accommodate
enue and expenditure,
“Compensation spend-
the gratuity costs and
and improving the com-
affordable.
In its Budget Review
affordable limits.”
Baseline adjustments
“... Medium-term wage
will contribute to closing
ing will increase margin-
the impact of the pan-
position of expenditure,”
lective bargaining result
ally, from R665.1 billion
demic, placing pressure
adds National Treasury.
in salary adjustments
in 2021/22 to R702
on provincial health and
that exceed compensa-
billion in 2024/25, at an
education compensa-
tion ceilings, reductions
average annual rate of
tion budgets.
in headcount will be
1.8%.
It adds that should col-
required. In his recent Budget
“As indicated in the
“To alleviate this short-term pressure, a
2021 Medium Term
portion of the revenue
Speech, Finance Minis-
Budget Policy State-
improvement is allocat-
ter Enoch Godongwana
ment, we have allocated
ed to provinces,” adds
said a Public Sector
additional funding of
National Treasury.
Labour Summit was
R20.5 billion in 2022/23,
scheduled to take place
to meet the cost im-
ing for national and pro-
from 28 to 31 March
plications of the 2021
vincial government grew
2022.
public service wage
by 7.3% on average for
agreement,” he said.
the period 2014/15 to
“This summit is an important opportunity for
According to National
Public Sector Manager • March 2022
Photo by Mathieu Stern on Unsplash
Work underway to stabilise public sector wage bill
Compensation spend-
2019/20, compared with
15
