Government offers public servants a 4.7% wage hike, but unions want more

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Government offers public servants a 4.7% wage hike, but unions want more
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One of the main reason’s government is holding firm on its lower wage offer is its responsibility to rein in South Africa’s debt.

Unions, including the Public Servants Association and other bodies affiliated with Cosatu , Fedusa and Saftu, are also demanding improved benefits for their members. File Picture: Armand Hough / Independent NewspapersGovernment has offered a salary increase of 4.7% to the country’s public servants.

The labour unions then lowered their demand to 7.5%. The various unions have not accepted government's offer.“We think we are getting closer to a settlement range, which could be anything between 5.5% and 6%,” he explained.Jannie Oosthuizen, a labour relations officer at the Public Servants Association of South Africa said that government’s latest wage offer was not accepted by its more than 240,000 workers.

The offer was rejected even though the 4.7% pay rise was above South Africa’s inflation rate of 3.8%. and other bodies affiliated with Cosatu, Fedusa and Saftu, are also demanding improved benefits for their members. Unions want a higher medical aid subsidy, a R2,500 increase in housing allowances, and an increase in danger pay from R597 to R1,000.

It is expected that the nation’s debt will rise to around 75.3% of gross domestic product in 2025-26. The country’s debt accounted for 74.6 % of nominal GDP in June 2024.

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