Finance Minister Tito Mboweni tabled the Medium-Term Budget Policy Statement today where he touched on public sector wage employee compensation.
CAPE TOWN – Finance Minister Tito Mboweni tabled the Medium-Term Budget Policy Statement today where he touched on public sector wage employee compensation.
“Now, as we go forward together, as part of our post-pandemic rehabilitation, we need to come together to forge a new consensus on public-sector employee compensation,” said Mboweni.
According to Mbowni, the private sector has made sacrifices and even negotiated salary cuts to keep businesses afloat.
Over the past five years, public sector employee compensation increased by 7.2 per cent a year on average which is well above inflation and over the next five years, it will need to grow slower.
“The Minister for the Public Service and Administration and the leadership of the public service unions are meeting to discuss how best we adapt to the reality that we must do more with less, and that we are all in this together,” said Mboweni.
He added, “We wish to thank them all for the seriousness with which they approach this matter. I must stress that our public servants do important work for South Africa”.
In his address, the Finance Minister said that consideration should be given to the proposal for across the board compensation pay reductions to management level positions, across national, provincial and municipal governments, state-owned entities all other senior public representatives.
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