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

Back to Resource Hub

Related Services

Post

Latin America Key Themes 2024 – Slower growth, but it’s not all bad news

Growth in most LatAm economies will be below consensus. Economic momentum has surprised to the upside through most of 2023, but the full effects of record global and domestic monetary tightening are yet to be seen.

Find Out More

Post

Easing financial conditions offer CRE some respite

Our measure of financial conditions has become less restrictive in the US and started to loosen in the eurozone and the UK, reflecting investors' expectations that interest rates have peaked. This should aid the outlook for commercial real estate (CRE) on the margins, although the scale of past rate hikes, sluggish economies, and structural headwinds mean the sector still confronts challenging fundamentals.

Find Out More