southafricalogoGovernment representatives have recently proposed an adjustment to the public sector wage bill, sparking outrage from unions.  

In an informative article, Fin24 has examined some of the numbers that relate to the debate on this issue.  Among the interesting facts highlighted is that between 2006/07 and 2018/19, total compensation spending on the main budget more than tripled, from R154 billion to R518 billion.  Above-inflation remuneration increases accounted for the largest proportion of that spending.  The total number of employees in the public service is 1.2 million, of which 28,000 are senior managers.  The annual salary of a government employee at job grade 16 (senior manager) is R2,169,585, while the annual salary of a government employee at job grade 1 (junior employee) is R130,379.  The Gini coefficient in the public sector is 0.38 while that in the rest of the economy is 0.64, so the public sector has greater wage equality than the rest of SA.  The average annual salary of a private sector worker comes in at R273 000, while in the public sector the average annual salary is R352 000 - R393 000 (although a larger percentage of public servants have tertiary qualifications).  


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