Rorisang Kgosana
Premium Journalist
3 minute read
7 Jul 2021
5:24 pm

Rating agencies closely watching public wage negotiations

Rorisang Kgosana

Unions say they are accepting the offer as a stop-gap, until the economy improves, but economists warn their demands could be detrimental.

Minister of Public Service and Administration Senzo Mchunu. Picture: Twitter

While unions are considering accepting the offered 1.5% public wage increase and lump sum gratuity, government would have to strategically source the unbudgeted R18 billion on offer, while remaining under the watchful eye of international credit rating agencies. Public service and administration (DPSA) Minister Senzo Mchunu put down an offer of a 1.5% wage increase, including a monthly cash allowance of between R1200 and R1600. This also means that the lowest paid workers would receive an increase of 11.7%. The proposed wage increase is apparently expected to cost the public purse R18 billion. The once-off offered 1.5%, which is due...