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Part-time employees are eligible for non- pensionable monthly cash allowance

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Contract and part-time employees in the public service space are eligible for the payment of a non-pensionable monthly cash allowance, says Public Service and Administration Director-General, Ms Yoliswa Makhasi.

The Director-General recently issued a circular to Head of departments and provincial administrators with the updated and amended improvement in conditions of service for employees on salary levels 1 to 12 and those covered by Occupation Specific Dispensations (OSD).

“The following categories of employees are eligible for the payment of a non-pensionable monthly cash allowance, contract workers, part-time workers and employees who fall within the scope of the Public Service Co-ordinating Bargaining Council (PSCBC).

“Employees appointed on or after April 1, 2021; and any employee who was in the employ on April 1, 2021, but whose services were terminated for whatever reason, before the implementation of the non-pensionable cash allowances.

“Therefore, those employees must receive the payment of a non-pensionable monthly cash allowance for the months he or she was in service,” said the Director- General.

However, Ms Makhasi said the following categories of employees are not eligible for a payment of a non-pensionable monthly cash allowance:

  • Development Programmes employees (learnerships) including internships outside OSDs;
  • Employees appointed on a daily rate/sessional or periodical basis (casual employees, employees who are not remunerated on an hourly or daily basis);
  • Any person who does not fall under the definition of an employee in terms of section 8 of the Public Service Act of 1994.

The Director-General further said: “Paragraph 12 of circular no:15 of 2021 provides that departments are to ensure that they implement the non-pensionable cash allowance. Should any problems arise with the implementation thereof, departments must approach the DPSA for assistance.

“It should be noted that persal will implement the payment of the non-pensionable monthly cash allowance programmatic.”

The Minister for the Public Service and Administration has approved the following non-pensionable monthly cash allowances for part-time workers per salary level with effect from April 2021.

Salary Level  Allowances for full-time employees6/8 part-time employees5/8 part time employees3/8 part-time employees
SL           1-5R1220R915R763R458
SL           6-7R1352R1014R845R507
SL 8-9  R1450R1088R906R544
SL 10-11R1640R1230R1025R615
SL 12R1695R1271R1059R636

In terms of the scope of applicability of the circular, the Executive Authorities concerned (where applicable) will address the implementation of the non-pensionable for cash allowance for Members of the Senior Management Service (SMS salary levels 13 to 16), as well as personnel on salary levels 1 to 12 and where applicable employees covered by an OSD, employed in terms of Employment of Educators Act, 1998, the South African Police Act, 1995, the Defence Act, 2002, the Correctional Services Act, 1998 and the National Prosecuting Authority Act, 1998.

“It is possible that measures contained in this circular may be erroneous or that errors may be in the implementation thereof.

Departments must inform affected employees in writing that any overpayments or underpayments due to errors will be rectified. Should any challenges arise with the implementation thereof, departments must approach the DPSA for assistance,” she said.

In the recent past, the DPSA has been inundated with enquiries by individual employees about the payment of the non-pensionable allowance.

Ms Makhasi said departments must ensure that their employees are aware of this provision in the Regulations and that they must address enquiries to their departments for assistance.

She said where departments are not able to assist employees; the departments may approach the DPSA for assistance, adding that the current circular only deals with the implementation of the non-pensionable cash allowance.

The Director-General concluded by indicating that departments will be provided with a further communique on the implementation of the 1.5% adjustment.