Research Briefing

South Africa | Public sector wage bill set to increase further

Ipad Frame_Public sector wage bill set to increase further

The public sector wage bill is one of South Africa’s largest line items on the expenditure side, accounting for roughly one-third of total expenditure. In an effort to reduce remuneration costs, the government has opted to “freeze” the wage bill over the next three years. However, unions were not happy and forced the government’s hands to revise its offer. What will the impact of this new offer be?

What you will learn:

  • The public sector wage bill has increased rapidly over the past couple of decades
  • Unions are swinging for the fence with insane demands
  • Government will have to reprioritise spending or overspend

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