PSA Informs Members about Recent Proposal for Public Service Salary Increase
Johannesburg – The Public Servants Association (PSA), which represents over 250,000 public-sector employees, is initiating a mandating process for its members regarding the government’s final proposal concerning a cost-of-living adjustment and enhancements in the conditions of service for public servants.
Following initial talks on 8 January 2025, where the government suggested a 5% salary rise as part of a multi-term agreement, further discussions took place on 20 January 2025.
“These discussions led to a conclusive offer that incorporates substantial improvements across various essential areas,” stated the PSA.
The revised proposal includes a cost-of-living adjustment featuring a 5.5% salary increase for the 2025/26 financial year, which is an enhancement over the initial 5% suggestion.
For the 2026/27 and 2027/28 financial years, salary modifications will correspond with the Consumer Price Index (CPI), with increases limited to between 4% and 6%.
The Housing Allowance is set to rise from R1,784.55 to R1,900 in April 2025, along with an additional CPI-based adjustment in July 2025.
“Additional improvements include modifications to the individual-linked savings facility, enabling employees who resign or are dismissed to access the full value of their savings under PSCBC Resolution 7/2015 from 1 April 2025,” clarified the PSA.
Adjustments to medical aid will also be put in place, aligned with the Medical Price Index (MPI) for the 2025/26 financial year, and will increase by MPI + 0.5% for the 2026/27 and 2027/28 financial periods.
Proposed enhancements to allowances include an increase in the Danger Allowance from R623.29 to R650 in April 2025, along with a subsequent CPI-based adjustment in July 2025.
The Special Danger Allowance will be raised from R931.82 to R950 in April 2025, followed by another CPI-based increase in July.
The Service Allowance for Police is expected to increase from R700 to R950 in April 2025.
“In addition to these monetary adjustments, the government and organized labor have agreed to tackle further demands through working committees and a collective agreement,” the PSA mentioned.
These include frameworks for a death grant, research and recommendations for comprehensive danger insurance, readiness assessments for childcare and breastfeeding facilities, and the development of a bursary scheme for the dependents of public servants.
Other initiatives encompass a review of recruitment practices, updates to the uniform policy, and consultations regarding a revised incentive policy framework.
The PSA has urged its members to engage actively in the voting process to accept or decline the offer.
“If the proposal is accepted, the multi-term agreement will be fully binding and will dictate the working conditions and benefits of public servants over the next three years,” the union concluded.