TreasuryNews24 reports that on Tuesday, acting Department of Public Service and Administration (DPSA) Minister Thulas Nxesi gave MPs an update on the salary negotiations with public servants.

"I would like to report that all parties to the Public Service Coordinating Bargaining Council (PSCBC) have been advised of the need to engage and settle the matter of wages. The final offer of an average of 7.5% by the government remains available and has not been withdrawn as it has been purported in the media," Nxesi later told journalists. Currently, the government is offering a 3% pensionable increase across the board, the continuation of the current non-pensionable cash allowance of R1,000 at all salary levels, and a 1.5% pay progression payable to all qualifying employees. According to Nxesi, the government's offer amounts to a 7.5% increase when the cash gratuity and 1.5% pay progression are taken into account. On Monday, it was reported that the Public Servants Association (PSA) had officially served notice of a strike on the government. The PSA's formal notice came after Nxesi indicated that he would invoke section 5(5) of the Public Service Act to unilaterally implement a 3% wage increase. The lergislative provision allows the government to enforce salary increases unilaterally as long as wages and benefits are not reduced. Meanwhile, indications point to Finance Minister Enoch Godongwana tabling a Medium-term Budget Policy Statement on Wednesday that accommodates a 3% increase in public sector wages. Nxesi also noted that, as a last resort, the DPSA had requested facilitation by the CCMA in order to break the wage increase deadlock and safeguard the collective bargaining process.


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