‘SA can’t afford public servants’ 4.7% salary increase’ – warns economist

It may be good news for public servants as government announced a 4.7% salary increment ahead of the long weekend, but economists say otherwise.

The Minister of Public Service and Administration (PSA), Noxolo Kiviet, said on Tuesday non-senior management workers (SMS) will get a salary bump up from 1 April.

Expected to ease inflationary pressures, the salary top-up applies to non-SMS workers whose salaries fall within levels one to 12 of the pay-scale.

“Considering the current economic climate and the need for fiscal discipline, the government will implement a 4.7% salary increment for public servants in 2024,” Kiviet said in a statement.

Coming amid rising inflation and an already high government wage bill, the increment undoubtedly required a careful balancing of interests.

Kiviet said that government considered various factors to strike a balance between meeting the needs of public servants and delivering efficient services.

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‘We can’t afford it’

Echoing Kiviet, independent economic analyst Bonke Dumisa said the 4.7% increment had to be viewed broadly.

However, he noted the percentage was relatively low compared to the 7.5% previously agreed upon.

Government agreed to a 7.5% salary increase for public servants for the 2023/2024 financial, and a capped projected CPI salary increase for the 2024/2025 financial year. The figure announced falls 2.8% short.

Despite acknowledging the purpose of the increase amid record high inflation, Dumisa said the increment could hurt the government’s pockets.

“We can’t afford it,” Dumisa said, explaining the public wage bill was already high.

Echoing Finance Minister Enoch Godongwana, Dumisa said government debt levels were alarming, questioning whether increasing government expenditure was a smart move.

“South Africa is operating at huge budget deficits and has been for many years. These budget deficits are the cause of the continuous high inflation rate. Hence, when public servants get salary increases, that feeds more inflation.

“We must remember that the current South African government debt of over R5.3 trillion which will balloon to over R6 trillion by 2026 must be paid.

“There are many other service delivery challenges the government faces, but there’s no money,” Dumisa told The Citizen.

Salaries for non-SMS workers in the public service range from R6 856 to R52 569 as per the 2023 scale.

Dumisa said workers on the low end of the spectrum were likely to feel the inflationary pressure most, explaining they should perhaps be the primary focus.

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Opportunistic move

South Africans will be heading to the polls to cast their votes in the national elections in May.

Despite acknowledging the need to increase salaries amid high inflation, Dumisa questioned the timing.

The economic analyst believes the announcement could be politically-motivated.

“Civil servants are literally taking advantage of the political election season,” said Dumisa.