Minister Inkosi Mzamo Buthelezi
Public Service and Administrtion Minister, Inkosi Mzamo Butherlezi, welcomes the conclusion of the wage negotiations for the financial year 2025/26, following the last bargaining meeting on 20 January 2025, with all the trade unions within the Public Service Coordinating Bargaining Council (PSCBC) having accepted the government’s latest offer of a 5.5% wage increase. The draft wage agreement was circulated to all trade unions for their final processes as per the constitution of the PSCBC.

THE OFFER:

The government has tabled an above-inflation wage increase of 5.5% for public servants, up from the initial 4.7% offer. Subsequent wage increases will be linked to the Consumer Price Index (CPI) for the 2026/27 and 2027/28 financial years.

ALLOWANCES:

In addition to the wage increase, the government has proposed adjustments to various allowances, including:

  • Housing Allowance: Increased from R1,784 to R1,900 starting on April 1, 2025, with further adjustments based on CPI for the 2025/2026 financial year.
  • Medical-Aid Subsidy: Adjusted in line with the Medical Price Index (MPI) for 2026/27 and 2027/28, with an additional 0.5% added to MPI, compared to the previous offer of MPI alone.
  • Danger Allowance: Increased from R623.29 to R650 for the 2025/2026 financial year, with future increases tied to CPI.
  • Special Danger Allowance: Adjusted from R931.82 to R950 on April 1, 2025, with further increases based on CPI for the 2025/2026 financial year and beyond.
  • Police Service Allowance: Increased from R700 to R950 starting on April 1, 2025, with subsequent adjustments based on CPI from 2026/2027 onward.

NEGOTIATIONS UPDATE:

At the recent Employer Caucus Meeting in Johannesburg, outgoing Director-General Ms Yoliswa Makhasi highlighted the improved relationship between the government and organized labor, which has resulted in smoother, though still robust, negotiations. She commended the negotiations for maintaining professionalism throughout the period.

Government wage negotiations team at the Employer Caucus Meeting

Makhasi also advocated for increased representation of women and youth in the government’s negotiation team.

“The future of any organization lies in its human resources,” Makhasi said, emphasizing the importance of preserving institutional knowledge.

“The experience and institutional memory of any organization should not be lost when individuals reach retirement age,” she added.

Furthermore, Makhasi called for the swift implementation of the Personnel Expenditure Review (PER) recommendations once consultations with organized labor are completed. The PER aims to enhance the capability and ethics of the public service while addressing personnel expenditure challenges and improving government efficiency.

Government Chief Negotiator, Mompati Galorale, revealed that the next cycle of negotiations will begin in two years time, before the lapse of the current agreement.