The Acting Director-General of the Department of Public Service and Administration (DPSA), Mr. Willie Vukela, has released a Circular detailing the implementation of cost-of-living adjustments for public servants over the next three years in compliance with Public Service Coordinating Bargaining Council (PSCBC) Resolution 1 of 2025
DPSA Circular No. 7 of 2025 announces improvements in the conditions of service for employees on salary levels 1 to 12 and those covered by Occupation-Specific Dispensations (OSDs).
Implementation of PSCBC Resolution 1 of 2025
The PSCBC Resolution 1 of 2025 provides that for the financial years 2025/26, 2026/27, and 2027/28, employees on salary levels 1 to 12—including those under OSDs—will receive pensionable salary increases as follows:
- Financial Year 2025/26: A 5.5% increase effective April 1, 2025.
- Projected Consumer Price Index (CPI) for financial years 2026/27 and 2027/28, as determined by the National Treasury during the main budget tabling.
In light of this resolution, the Minister for Public Service and Administration, Inkosi Mzamo Buthelezi, has determined that salary scales that applied up to 31 March 2025 be adjusted by 5.5% for the 2025/2026 financial year across all salary levels with effect from1 April 2025.
Scope of Applicability
This Circular applies specifically to employees on salary levels 1 to 12 and those on OSDs appointed under the Public Service Act of 1994.
Notably, the adjustments do not extend to the following personnel groups. The adjustment for these personnel groups, or the implementation/adjustment of the formulae to accommodate such adjustment, will be addressed by the Executive Authorities concerned:
- Personnel on salary levels 1 to 12, and where applicable, employees covered by OSDs, employed in terms of the Employment of Educators Act, the South African Police Services Act, South African Defence Act and the Correctional Services Act, 1998, as determined by the relevant Sectoral Ministers.
- Personnel employed under the National Prosecuting Authority Act, 1998.
- Members of the Senior Management Service (SMS) at salary levels 13 to 16 adjustments will be addressed once the conditions of service for staff below SMS echelon have been finalized.
Ministerial Determination
In accordance with the Public Service Act of 1994, PSCBC Resolution 1 of 2025 is recognized as a determination made by the Minister for Public Service and Administration (MPSA). The MPSA retains the authority to clarify or supplement this determination through directives, ensuring compliance with the terms of the agreement.
This Circular serves as a directive to elucidate the determination for employees appointed under the Public Service Act, reinforcing the commitment to improving conditions of service within the public service.
For further details, heads of national and provincial departments and provincial administrations are encouraged to review the full circular and ensure compliance with the new salary adjustments.
https://www.dpsa.gov.za/dpsa2g/documents/rp/2025/18_1_p_11_03_2025.pdf
