- Government offers public servants a 1.5% increase + a R1000 cash allowance, resulting in an 11.7% increase for lowest earning public servants.
- Cash allowance is non-pensionable, but members can make voluntary contributions to GEPF
- Unions to seek mandate from their members on the revised offer
During the facilitation process on the public service wage negotiations the employer placed a revised offer to the trade unions for consideration by their members. The offer focuses on the bettering of the non-pensionable cash allowance of R978 that was previously offered. The revised offer now secures a minimum cash equivalent of R1000 for all employees across all employment levels.
This adjusted offer equates to level 1 employees receiving an amount equal to a cost of living adjustment of CPI + 7.5%, or a straight 11% increase if equated to the current salary levels. Level 6 employees, for instance, will receive an amount equal to a cost of living adjustment of CPI + 2.1% while level 10 employees will receive an amount equal to CPI (4,2%). The proposed implementation date of the draft agreement is the 01 April 2021.
The draft agreement allows for a “safety clause” that will bind the employer to continue to pay the cash allowance until such time it is amended by agreement between the parties. Therefore, if no agreement is reached by 31 March 2022 on the 2022/2023 salary adjustment the cash allowance will continue to be paid to all employees.