With inflation rising and costs of living also on the way up, a salary increase for public-sector employees in South Africa has been set at 4.7% to accrue from 01 October 2025. The increase shall therefore follow the implementation of a 7.5% increase in November 2024, for the second year of a two-year wage agreement under PSCBC Resolution 1 of 2025.
Beneficiaries of the Increase
The salary increases benefit public servants on salary levels 1 to 12, including those who fall under Occupation-Specific Dispensations (OSDs). Some categories of employees are excluded from the increase, however, such as members of the Senior Management Service (SMS) and employees governed by sectoral acts including the Employment of Educators Act and South African Police Services Act. The Department of Public Service and Administration (DPSA) issued Circular No. 7 of 2025 to provide details regarding the implementation of these adjustments.
Financial Implications and Budget Allocation
Government has allocated R754.2 billion for the payment of public servants’ salaries in the 2025-2026 fiscal year, seeing a R33.1-billion increase from the previous year. The allocation is, therefore, expected to increase to R822.5 billion in 2026, showing a continued commitment to support public servants through the economic challenges.
The Trade Union Perspectives and Negotiations
In the context where the government proposed the increase, unions are questioning whether an adjustment of 4.7% can curb current inflation. The unions representing over 300,000 public employees are demanding higher increments on the grounds that this increase is insufficient to keep up with the cost of living. Negotiations are continually ongoing as unions argue for a greater wage adjustment to help support the financial well-being of public employees.
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