Pretoria – Government has reportedly increased its wage offer to public servants to 7%.
The latest three-year offer includes a 7% raise in the first year and consumer price inflation plus 1 percentage point for the following two years, say media reports. The housing allowance will increase to R1200 from R900 a month and medical aid benefits will increase by 29%.
Unions representing government’s employees are expected to consult with their members ahead of a meeting with government on Friday.
Wage discussions between the state and unions have been ongoing since last year.
Government had previously put an offer of 5.8% on the table, while unions had demanded a 10% increase.
Last month, Acting Public Service and Administration Minister Nathi Mthethwa said government's wage bill was currently sitting at R400 billion and is projected to grow to R437 billion in the 2015/16 financial year.
He said any increases beyond what is budgeted for would lead to borrowing for recurring expenses such as salaries and impact negatively on operational budgets of departments, infrastructure development, employment creation and service delivery. – SAnews.gov.za
