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Bloomberg reports that SA’s government has drafted an early retirement offer for civil servants as part of an effort to reduce its wage bill.
According to knowledgeable sources, state workers aged between 55 and 60 could be offered two weeks’ pay for every year they have worked up to a maximum of 20 years, and one week’s pay for every year they have been employed after that. Any penalties usually incurred by those taking early retirement would likely be waived. The National Treasury is in a closed period until after the presentation of the annual budget on Wednesday and so did not respond to questions. If adopted, the early retirement plan would be available over the next two years and about 30,000 people could take up the packages. Priority will be given to applications from staff at government departments confronting more severe budgetary pressures. Any offer would have to be tabled at the Public Sector Bargaining Council Chamber. In October last year, the Treasury said it was setting aside R11 billion to fund early retirement, with more details be released in the budget. The government’s wage bill accounts for more than a third of its total expenditure, crowding out spending on other priorities. Previous early retirement offers had limited take-up.
- Read the original of the report in the above regard by Loni Prinsloo & Antony Sguazzin at Moneyweb
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