The Director-General for the Department of Public Service and Administration, Ms Yoliswa Makhasi, has singed the adjustment of the housing allowance for government employees to increase it from R1 398.35 to R1 456.94 per month, as contained in the Public Service Co-ordinating Bargaining Council (PSCBC) Resolution 7 of 2015, clause 4.6.
The adjustment of the housing allowance is implemented on the 1st of July each year with the first adjustment being effective on 1 July 2017. The GEHS housing allowance is adjusted annually in line with the average Consumer Price Index (CPI) for the preceding financial year.
Government employees on level 1-10 (non-management) are eligible to receive a monthly housing allowance of R1 456.94 if they are homeowners or living in rented accommodation. The housing allowance is paid to eligible employees as a monthly contribution to assist them with the recurring costs of their accommodation and to gain access to owned and rented accommodation.
Employees who are on middle management and senior management levels (11 -16) are on Total Package Salaries and therefore do not receive a separate housing allowance. However, they are able to access other services of the scheme, such as education and counseling, housing loans and housing stock facilitation, and enrolment.
GEHS Housing Allowance for Homeowners: Employees who are home-owners and have submitted proof of homeownership and occupancy, shall continue to receive the housing allowance and the adjusted housing allowance is R1 456.95 per month in line with the Consumer Price Index (CPI).
GEHS Housing Allowance for Tenants: Employees who are tenants and have submitted proof of rental occupancy will receive the housing allowance as follows:
- Employees who are eligible to receive the housing allowance but do not own a house shall continue to receive R900 per month and the remaining R556.94 will be diverted to the GEHS Individual-Linked Saving Facility (ILSF).
- Employees who were employed after 27 May 2015 and are eligible to receive the housing allowance but do not own a house, shall have the full amount of R1 456.95 diverted to and accumulated in the GEHS Individual-Linked Savings Facility.
Employees must contact the Human Resource division in their respective departments in order to access the housing allowance. Applications for housing allowance must be done with Human Resource (HR) as it not received automatically.
Employees who resign or are dismissed shall not be entitled to receive the accumulated savings. In the event of death, retirement or medical boarding, the accumulated savings shall be forfeited if an employee is not enrolled with the GEHS.
It is mandatory for employees to enroll with the GEHS to access any and all the services of the GEHS (PSCBC Res 7/2015, clause 4.1.4)