MEDIA STATEMENTS: Government and labour unions agree on three year salary adjustment, 31 July 2012

Date: 3 Aug 2012

Pretoria-Government and labour unions have agreed on a three year settlement for the period 2012 to 2015. The 2012 salary increase effective on May 1, is 7%. For 2013 to 2015 the increase is Consumer Price Index (CPI) plus 1%.

The employer is relieved that after six months of difficult negotiations parties have finally come to this conclusion. "The Agreement indicates what is possible when parties join hands to solve challenges" Sisulu said.

"This three year agreement allows for the employer and labour to implement all elements of the agreement, the three years are also in line with Government planning cycle and ensure stability and proper planning for both parties" She added.

As part of the agreement, the employer and labour have committed themselves to a working relationship towards a service delivery accord that will ensure high productivity, efficiency and professionalism in the public service.

The State also committed to invest in public servants through skilling and empowerment to ensure higher productivity in the public service. The Minister believes this is a fair settlement that covers all parties concerned.

The agreement also covers the following areas:-

  • 1. Salary Adjustments: The Public Service salary increases effective on 01 May 2012 is 7%. For the financial year 2013 to 2015 public wage salary increases will be based on the average projected CPI plus 1%.

  • 2. Pay Progression: In an endeavour to develop and professionalise public service, parties also agree to amend qualifying period for pay progression from 12 to 24 months for new employees in the public service.

  • 3. Recognition of Long Service :State as the employer together with labour unions also agree on recognition of long service in the public service in a form of increased annual leave entitlement and cash awards.

  • In summary Government will recognise Long Service as follows:

    • 3.1 10 years continuous service: increase annual leave entitlement from 26 working days to 30 working days

    • 3.2 20 years continuous service: a cash award of R7500 plus a certificate

    • 3.3 Thirty years continuous service: a cash award of R15 000 plus a certificate

    • 3.4 Forty years continuous service: a cash award of R20 000 plus a certificate

  • 4. Recognition of Improved Qualification: As from January 2013 government will recognise the attainment of an improved qualification which relates to an employee's scope of work. This recognition includes a once-off cash bonus of 10% of employee's annual salary notch, provided this does not exceed the minimum notch of salary level 8. This once-off cash bonus excludes employees who received additional qualification through state-funded bursaries.

  • 5. Family Responsibility Leave and Pre-Natal Leave: As from January 2013 government employees will be entitled to five working days family responsibility leave per annual leave cycle. With regard to pre-natal leave, eligible government employees will be entitled to 8 working days per pregnancy.

  • 6. Housing Allowance: Parties agreed on a housing allowance of R900.

"We recognise the commitment to an effective public service shown by labour unions throughout this negotiations process. This agreement lays a foundation for further processes of development of a service charter aimed at higher productivity in the public sector", said Minister for Public Service and Administration, Ms Sisulu.

Issued by the Ministry for Public Service and Administration


Ndivhuwo Mabaya

Head of Media Services

Cell: 0836457838

Date: July 31 , 2012

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