Trade unions representing the majority of public servants at the Public Service Co-ordinating Bargaining Council (PSCBC) have accepted government’s wage increase offer of 7.5 % during the 2023/24 fiscal year.
This was confirmed by the Department of Public Service and Administration (DPSA) in a statement released on Friday, March 31, 2023. According to the DPSA, the 2023/24 public service wage negotiations were concluded during a special PSCBC meeting on Thursday, March 30, 2023.
The employer’s offer has been signed as a resolution of the PSCBC and is binding on all parties to the Council. The accepted offer will be implemented with effect from 1 April 2023.
Unpacking the employer’s final offer
The settlement agreement for 2023/24 that has been signed entails the following provisions:
- A two-year multi-term agreement for the Financial Year 2023/24 and Financial Year 2024/25.
- Pensionable salary increases of 7.5% for employees on levels 1 – 12 packaged as follows:
- Translation of the current non-pensionable cash gratuity at the value of 4.2% on the baseline.
- A nominal increase of 3.3% across the board.
- Pay progression of 1.5% for all qualifying Public Servants shall continue as per the existing dispensation across all Departments.
The non-pensionable cash allowance will be translated into the pensionable increase on the baseline with effect from 1 April 2023, without disadvantaging any employee in terms of the cash net effect into the pocket.