Government moots ‘stricter headcount management’ amid public service wage risk

MARLENY ARNOLDI

AS negotiations over the increase in public sector wages in the 2022/23 financial year continue, Finance Minister Enoch Godongwana stated in his Budget speech on February 22 that government remains resolute on narrowing the public sector wage bill in the medium term.

He noted that a public service wage agreement that exceeded the rate of growth accounted for in the Budget remained a key risk to the fiscal outlook for the new year and would require steps to contain overall compensation spending through “stricter headcount management”. 

Government in November 2022 tabled a final offer of an effective 7.5% increase to unions in what have been deadlocked public service wage talks. This increase would still cost the fiscus R34-billion in the 2022/23 financial year.

Unions were demanding a 10% baseline increase and protested for one day in mid-November against the initial offer of a 3% increase.

The compensation of public sector employees as a percentage of consolidated government spending has been