Press Release: Conclusion of the Public Service Wage Negotiations
31 March 2023
- Government and the majority of Trade Unions in Council agree on a multi-term agreement for the financial years 2023/2024 and 2024/2025.
- An average increase of 7.5% salary adjustment for public servants for the financial year 2023/2024.
- A capped Projected CPI salary increase for the financial year 2024/2025.
- Expediting the decisions on the implementation of the GEHS as agreed to during the Public Service Summit
The Public Service Co-ordinating Bargaining Council (PSCBC) is pleased to announce that Government and majority unions have reached an agreement on the payment of a salary adjustment for employees employed in the public service for the financial years 2023/2024 and 2024/2025.
The majority of trade unions who signed the agreement are HOSPERSA, NAPTOSA, PSA, and SADTU. Together these unions form a 53,9% majority in favour of the agreement. NEHAWU, POPCRU, DENOSA and SAPU, opted not to sign the agreement as per the mandate given by their members.
The parties to the Council commenced the wage negotiations on 17 February 2023 at the PSCBC and the signing of this agreement today, 31 March 2023 marks the conclusion of the wage negotiations.
In an attempt to bring the salaries of public servants in line with the market, parties agreed to a two-year multi-term agreement. For the financial year 2023/2024, the employer shall pay employees on salary levels 1 – 12 including those remunerated in terms of an OSD in the Public Service an average increase of 7.5%.
For the financial year 2024/2025, the employer shall pay employees on salary levels 1 – 12 including those remunerated in terms of an OSD in the Public Service a pensionable salary increase of a capped Projected CPI between 4,5% and 6.5%. This means that in the event that the Projected CPI percentage for 2024/2025 is less than 4.5%, the Projected CPI for the relevant period will be deemed to be 4.5% and, in the event, the Projected CPI for the relevant period is above 6.5%, the Projected CPI will be deemed to be 6.5%.
Parties also agreed that the employer shall process the payment of the pay progression to all qualifying employees in the public service in line with the applicable sectoral agreement.
On Government Employee Housing Scheme (GEHS), parties agreed to expedite the decisions on the implementation of the GEHS as agreed to during the Public Service Summit and these are entrenched in PSCBC Resolution 1 of 2022.
The PSCBC applauds parties to Council for their commitment to the wage negotiation process, which resulted in the signing of the agreement before the commencement of the new financial year. The signing of the multi-term agreement allows for some stability to focus on implementing various PSCBC agreements, including the Public Sector Summit agreement.