News24 reports that the public sector wage bill remains the government's biggest expenditure, having grown by about 40% in real terms over the past 14 years.
In a report of the National Assembly's Portfolio Committee on Public Service and Administration on the Department of Public Service and Administration's annual performance plan and 2023/24 budget, the committee noted that the cost was increasing rapidly. The report indicated: "One big negative consequence of the bloated public payroll is that the government is having to increase its borrowing to sustain its salary payments.” The committee noted that the department had conducted a review of personnel expenditure to inform the development of a remuneration policy framework for the public service. The terms of reference were developed and relevant stakeholders were engaged in 2022/23. A suitably qualified service provider was appointed in 2022/23 to review and analyse the framework and provide recommendations for improvements or alternative arrangements. MPs also found that the department was in the process of establishing a project management office tasked with introducing reforms, which could help build a capable, ethical and developmental state while managing the wage bill. According to the committee's report: "Five work streams have been identified on the management of the wage bill and consolidation of bargaining councils; human resource planning and development; the professionalisation of the public service; the consolidation of medical aid schemes and public sector pension funds; and productivity measurement.” . Meantime, over the medium-term, the department intends to continue to monitor and track the implementation of collective bargaining resolutions in order to enable it to resolve implementation issues before they develop into disputes.
- Read the full original of the report in the above regard by Jason Felix at News24
Get other news reports at the SA Labour News home page