As part of the implementation of the approved 5.5% cost-of-living adjustment (COLA) for salary levels 1 to 12 and Occupation-Specific Dispensation (OSD), the Acting Director-General of the Department of Public Service and Administration (DPSA), Mr Willie Vukela, has issued Circular No. 13 of 2025 to assist Middle Management Service (MMS) and OSD employees in restructuring their total remuneration packages, as provided for in the MMS dispensation.
DPSA Circular No. 7 of 2025 had already approved the implementation of the COLA, effective from 1 April 2025, while the latest circular outlines the modalities for the restructuring of packages.
Consequently, the circular provides MMS and OSD employees who had not yet restructured the flexible remuneration component of their packages the opportunity to do so, with effect from 1 April 2025, noting that tax rates remain unchanged.
However, the circular does not apply to once-off choices made by employees regarding the percentage of their Total Cost to Employer (TCE) package that constitutes their basic (pensionable) salary.
Departments are requested to inform MMS members and affected OSD employees accordingly. Likewise, the affected employees are empowered by Public Service Regulation 6(2) to approach their relevant departments for assistance.
