The Department of Public Service and Administration issued a circular on the Improvement of conditions of service for employees on salary levels 1 to 12 and those covered by Occupation Specific Dispensations (OSDs) with the cost-of-living adjustment effective April 1, 2022.
The circular that was issued today by the DPSA Director-General, Ms Yoliswa Makhasi, indicated that section 5 (5)(b) of the Public Service Act states that “notwithstanding subsection (4), but subject to the Labour Relations Act-the last offer made by the state as employer in a bargaining council referred to in the said subsection on a specific matter may, if a deadlock in negotiations is reached, be implemented by acting in terms of the provisions of this act or any other law, provided any such act does not have the effect of reducing existing remuneration or other service benefits, except in accordance with section 34.”
The Director-General said the 2022 negotiations on the improvement of conditions of service culminated in a deadlock, which the employer during the special council meeting under the PSCBC on August 25, 2022, requested the parties to engage in deadlock breaking mechanism through a facilitation process.
“On August 30, 2022, a special council meeting was convened after the facilitation process to receive the report of the facilitation and the proposed draft collective agreement. Parties at the Special Council adopted the draft collective agreement and agreed to subject it for the final mandating by their principals for the period of 21 days as per the Constitution of the PSCBC,” the DG said.
The employer’s offer as contained in the draft collective agreement provided for the following:
- The employer to continue to pay to all employees who were employed on or after April 1, 2022, a monthly non-pensionable cash allowance until March 31, 2023.
- The employer to pay a 3% pensionable salary adjustment to all employees on salary levels 1-12 employed in the public service and those employees covered by the Occupation Specific Dispensations (OSDs) with effect from April 1, 2022.
Non-Pensionable cash allowance
The following categories of employees are also eligible for the payment of a non-pensionable monthly cash allowance: contract workers; part time workers who fall within the scope of the PSCBC; and employees appointed on or after April 1, 2022.
However, the following categories of employees are not eligible for a payment of a non-pensionable monthly cash allowance:
- Development programmes employees including internships outside OSDs. Departments are advised to ensure that the stipend of the interns are adjusted and linked to the approved salary scales with effect from the date of signature of the circular.
- Employees appointed on a daily rate/sessional or periodical 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.
Public Service and Administration Acting Minister has approved the following non-pensionable monthly cash allowances for part-time employees per salary level with effect from April 1, 2022.
| Salary level | Allowances for full-time employees | 6/8 part-time employees | 5/8 part-time employees | 3/8 part-time employees |
| SL 1 – 5 | R1220 | R915 | R763 | R458 |
| SL 6 – 7 | R1352 | R 1014 | R845 | R507 |
| SL 8 – 9 | R1450 | R1088 | R906 | R544 |
| SL 10 – 11 | R1640 | R1230 | R1025 | R615 |
| SL 12 | R1695 | R1271 | R1059 | R636 |
“It must be noted that the payment of non-pensionable allowance will not be backdated to April 1, 2022 as it was paid on a continuous basis since the beginning of the financial year. However, it will continue to be paid until March 31, 2023. Employees who are appointed on a part-time basis will receive the portion of the non-pensionable cash allowance payable in terms of their contractual appointment,” Ms Makhasi said.
Three percent (3%) Pensionable Salary Adjustment
The employer will adjust the salary scales with 3 % pensionable salary adjustment to all employees on salary levels 1-12 and those employees covered by the OSDs employed in the public service with effect from April 1, 2022.
Pay progression
It must be further noted that each department shall process the payment of the pay progression to all qualifying employees employed in the public service in respect of the 2021/22 performance cycle in terms of any or all provisions of the PSCBC. All these include sectoral agreements regulating the payment of pay progression including the incentive policy framework with effect from July 1, 2022.
Scope of applicability of the circular
The circular does not apply to the following personnel groups:
Members of the Senior Management Service (SMS) salary levels 13 to 16). A decision on salary adjustments for the members of the SMS will be taken after the implementation of improvement in conditions of service for employees on salary levels 1 to 12 and those covered by OSDs.
Personnel on salary levels 1 to 12 and where applicable employees covered by OSDs, employed in terms of the Employment of Educators Act of 1994, the South African Police Act of 1995, the Defence Act 2000, the Correctional Services Act, 1998 as determined by the relevant sectoral Ministers.
Personnel employed in terms of the National Prosecuting Act, 1998. Departments are urged to submit to the DPSA any remuneration, rates, allowances not covered in this Circular, or Appendices thereto, and which have to be adjusted.
