Business Maverick: Government rejects 10% pay hike demand by public sector trade unions

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Business Maverick: Government rejects 10% pay hike demand by public sector trade unions
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Instead of agreeing to a 10% pay hike, the government has proposed it continues to award SA’s 1.2 million public servants an after-tax cash gratuity of R1,000 a month in 2022, which would cost the fiscus R20.5bn.

The government has rejected the demand by public sector trade unions for a 10% pay hike in 2022, which would cost the fiscus R49.2-billion to implement, saying it is unaffordable and exceeds its current budget to remunerate public servants.

Instead of agreeing to a 10% pay hike, the government has proposed that it continues to award SA’s 1.2 million public servants an after-tax cash gratuity of R1,000 a month in 2022, which would cost the fiscus R20.5-billion. In addition to the cash gratuity, public servants will receive a 1.5% pay hike, known as “pay progression”, which is ordinarily awarded to public servants for their years of service or performance. The pay progression is always pencilled in by the Treasury in the public sector remuneration structure.

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