2025 Public Sector Wage Negotiations Gov Offers 4.7% for 3 Years Down of 12% Demand South Africa: Key Points
2025 Public Sector Wage Negotiations Gov Offers 4.7% for 3 Years Down of 12% Demand South Africa: Key Points & Voting Information
The 2025 salary negotiations for South Africa’s public sector have begun, led by the Public Sector Coordinating Bargaining Council (PSCBC). Here are the main updates:
- Wage Demands and Offers:
- Unions’ Demand: A 12% wage increase for the 2025/26 financial year.
- Employer’s Offer: Initially offered 3% per year, which was then revised to CPI (currently at 4.7%) for 2025/26 and future adjustments based on CPI.
- Labour’s Counter-Demand: Unions proposed CPI plus additional increases (CPI + 2.5% for 2026/27, and CPI + 1.5% for 2027/28) if agreeing to a multi-year term.
CPI, or the Consumer Price Index, is a measure that tracks the average change in prices over time for goods and services that households typically buy, like food, clothing, transportation, and healthcare. It’s often used as an indicator of inflation, showing how much the cost of living has increased or decreased within a specific period.
In wage negotiations, employers may offer a “CPI-linked” increase, meaning salary adjustments will match the rate of inflation to help maintain employees’ purchasing power as prices rise.
- Additional Allowances:
- Increases in Homeowners Allowance, Medical-Aid Subsidy, and allowances for danger, special danger, and police service were offered but are contingent on unions’ acceptance of the overall wage proposal.
- Rejected Union Demands:
- The employer declined several demands, including pay progression beyond maximum notch, an entry-level increase to salary level 4, a ten-year service award, permanent appointments for specific roles, and performance bonuses.
- Next Steps & Voting:
- Members of the PSA are requested to vote on whether to accept or reject the employer’s revised offer.
- Vote Deadline: Voting closes on 11 November 2024 at 15:00.
- How to Vote: Members can submit their mandate via this link or contact PSA Provincial Offices for manual voting.
Watch
Actual File
FOR PSA MEMBERS: PUBLIC SERVICE COORDINATING BARGAINING COUNCIL (PSCBC)
24-10-2024
Update: Public Service wage negotiations – 2025/26-financial year
MANDATE REQUIRED!
Members will recall from the previous Informus that the PSA with other unions tabled salary demands to
the employer. The previous Informus outlined these demands. The employer tabled a counteroffer of a
3% salary increase for the next three years. Labour rejected the employer’s offer. Owing to the fact that
the employer and unions were far apart on the demands, parties agreed to a facilitation process to try and
reach consensus. At a special Council meeting on 22 October 2024, the employer proposed the
following:
Salary increase
The employer offered CPI (4.7%) for 2025/26. For the financial years 2026/27 and 2027/28, the employer
also proposed a salary increase of CPI respectively. The CPI for those two years still has to be
determined. The demand from labour is 7.5% for a single term. Labour will only accept a multi-term
agreement if the employer considers an increase of CPI plus 2.5% for the 2026/27-financial year and CPI
plus 1.5% for the 2027/28-financial year.
Allowances
The employer proposed the following adjustments:
• Homeowners Allowance increase from R1 784 to R1 900 as conditional offer, provided unions agree
on the final offer of the cost-of-living adjustment.
• Medical-Aid Subsidy to increase with Medical Price Index (MPI) of the previous year.
• Danger Allowance of R597 to R650.
• Special Danger Allowance from R849 to R920.
• Service allowance dispensation for police increase from R700 to R920.
During the facilitation process, parties also agreed to defer the following demands to be further discussed
at Council:
• Death grant
• Childcare and breastfeeding facilities
• Bursary Scheme for public servants’ dependents
• Standardisation of the Uniform Policy across the public service
• Standardisation for application of the Recruitment and Selection Policy
After extensive engagement, the employer also rejected the following demands by unions:
• Payment of pay progression beyond maximum notch.
• Abolishment of salary levels 1 to 3 and introduction of salary level 4 as entry level for the public
service.
• Award of R6 500 for employees who have completed ten years of service.
• Permanent appointments for reservists, educator assistants, and community healthcare workers.
• Reinstatement of the performance bonus.
The draft agreement is attached. Members are requested to provide the PSA with a MANDATE to
indicate whether they ACCEPT or REJECT the revised offer by the employer in totality. Members
should use the following link to submit their mandate: https://bit.ly/3Acu0DU Members can also liaise with
PSA Provincial Offices to submit a manual mandate. Voting closes on 11 November 2024 at 15:00.
Members will be informed of developments.
Employees who want to join the PSA can visit the PSA’s website, send an email to [email protected], or
contact PSA Provincial Offices.
Reuben Maleka
GENERAL MANAGER
Members will be updated on further developments in the negotiation process.
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