4 June 2007
In seeking to conclude the ongoing wage negotiations which have culminated
in the current strike in the public service that commenced on 1 June 2007,
government and the public sector unions met in Centurion on 4 June 2007 in an
effort to resolve the impasse on wage negotiations.
Government has formally tabled a revised offer to public service unions
which in line with the earlier offers is underpinned by the following
principles:
* ensuring that public servants receive a real salary increase and protect
the salary against inflation
* enabling government to attract and retain skills/ professionals in the public
service
* assisting government in improving its capacity to deliver on the services,
through enabling job creation.
The new offer, which is a very comprehensive package, entails the
following:
* a general salary increase of 6,5% for the 2007/08 financial year, which
takes into account average projected CPIX for 2007/08 plus a real salary
increase
* a general salary increase of projected urban areas less mortgage interest
cost (CPIX) plus 0,5% for the 2008/09 financial year
* the implementation of revised salary structures (occupation specific
dispensation) for the following professions in this financial year:
a) all categories of nurses with effect from 1 July 2007
b) legally qualified professionals in justice with effect from 1 July
2007
c) school based educators and school principals with effect from 1 January 2008
and 1 July 2007 respectively
* fast tracking the implementation of the housing allowance to 1 July
2007
* a 25% adjustment to night shift, special and danger allowances
* the full implementation of the Basic Conditions of Employment Act, in terms
of work performed on Sunday and public holidays as part of normal duty
* a medical subsidy increase from R1 900 to R2 020 for Government Employees
Medical Scheme (GEMS) members.
The new offer amounts to R13,7 billion. This is an improvement from R9,3
billion offer that was initially tabled by government. This is an increase of
R4,4 billion from the initial offer, which is an extra 3,3% increase on the
Wage Bill.
The revised salary structures will allow government to address the
challenges it is currently facing in attracting and retaining skills in the
public service.
The dispensation will ensure fair, equitable and competitive remuneration
structures for identified categories of employees. It will put in place proper
career pathing model for identified occupational categories.
Such a career pathing model is not an automatic salary increase but is a
forward looking plan to systematically increase salaries after pre-determined
periods based on specific criteria such as performance, qualification, scope of
work, experience, etc.
The revised salary structures will provide for dual career paths in terms of
which professionals and specialists can progress to levels where they earn
salaries that are equal to or higher than those of managers without moving into
management or supervisory posts.
In this regard, the specialist career path will accommodate the uniqueness
of different professional and specialist jobs by acknowledging existing 'job
families' in the specialist disciplines. It will also provide for longer salary
bands and substantial overlaps between salary levels to facilitate at adequate
salary progression to employees who choose to remain in the production levels
instead of aspiring to move into supervisory or management posts.
A new addition to the offer is the of fast tracking the implementation of
the housing allowance, where the allowance for renters will increase from R242
to R456 a month will result in substantial increases especially for the low
level workers.
The following table is synopsis of the increase to basic salary for
different salary levels after the new offer is effected:
Salary adjustment
Salary level 1
Current notch: R35 916
Revised notch: R38 250
Increase in Rand (605% salary adjustment): R2 334
Increase in housing allowance (R2 568), from R242 to R456 per month: R2
568
Increase in subsidy for GEMS members from R1 900 a month to a R2 020 a month:
R1 440
Total increase due to salary adjustment, housing allowance and Gems subsidy: R6
342
Total potential precentage increase plus 1% pay progression: 18,7%
Salary level 3
Current notch: R46 200
Revised notch: R49 203
Increase in Rand (6,5% salary adjustment): R3 003
Increase in housing allowance (R2 568), from R242 to R456 per month: R2
568
Increase in subsidy for GEMS members from R1 900 a month to a R2 020 a month:
R1 440
Total increase due to salary adjustment, housing allowance and Gems subsidy: R7
011
Total potential precentage increase plus 1% pay progression: 16,2%
Salary level 5
Current notch: R64 143
Revised notch: R68 313
Increase in Rand (6,5% salary adjustment): R4 170
Increase in housing allowance (R2 568), from R242 to R456 per month: R2
568
Increase in subsidy for GEMS members from R1 900 a month to a R2 ,020 a month:
R1 440
Total increase due to salary adjustment, housing allowance and Gems subsidy: R8
178
Total potential precentage increase plus 1% pay progression: 13,7%
Salary level 7
Current notch: R98 916
Revised notch: R105 345
Increase in Rand (6,5% salary adjustment): R6 429
Increase in housing allowance (R2 568), from R242 to R456 per month: R2
568
Increase in subsidy for GEMS members from R1 900 a month to a R2 020 a month:
R1 440
Total increase due to salary adjustment, housing allowance and Gems subsidy:
R10 437
Total potential % increase plus 1% pay progression: 11,6%
Salary level 9
Current notch: R146 685
Revised notch: R156 219
Increase in Rand (6,5% salary adjustment): R9 534
Increase in housing allowance (R2 568), from R242 to R456 per month: R2
568
Increase in subsidy for GEMS members from R1 900 a month to a R2 020 a month:
R1 440
Total increase due to salary adjustment, housing allowance and Gems subsidy:
R13 542
Total potential precentage increase plus 1% pay progression: 10,2%
Salary level 10
Current notch: R212 550
Revised notch: R226 365
Increase in Rand (6,5% salary adjustment): R13 815
Increase in housing allowance (R2 568), from R242 to R456 per month: R2
568
Increase in subsidy for GEMS members from R1 900 a month to a R2 020 a month:
R1 440
Total increase due to salary adjustment, housing allowance and Gems subsidy:
R17 823
Total potential percentage increase plus 1% pay progression: 9,4%
It is important to note the current package (salary plus benefits) for a
person on salary level 1 notch 1 is R69 282. With the new offer, the resultant
package will be R76 122.
The offer to align the conditions of service with the Basic Condition of
Employment Act (BCEA) means that the employer will remunerate employees working
on public holidays 2x salary and 1 and a half x salary for work done on
Sundays.
Government is of the view that this offer on the table is prudent and
forward looking. It will allow government to fulfil its mandate of delivering
quality services to the citizens of South Africa. It will help to attract the
finest of our talents to the public service and retain those with skills,
experience and are committed to excellence in serving the people of South
Africa.
For more information please contact:
Lewis Rabkin
Cell: 082 497 3220
Issued by: Department of Public Service and Administration
4 June 2007
