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Daily Investor reports that the National Treasury’s early retirement programme, which was implemented from 15 October 2025, is in full swing and is estimated to impact 30,000 jobs within the government.
This was revealed by Finance Minister Enoch Godongwana in his Medium-Term Budget Policy Statement (MTBPS) tabled in Parliament on Wednesday. As part of National Treasury’s policy of fiscal consolidation, the public sector wage bill, which consumes a third of its total spending, has to be tackled. One of the initiatives implemented by the Treasury in this regard is its Early Retirement Programme, which provides financial incentives for older employees to exit the public service. Crucially, the early retirement of older employees will ease the government’s wage burden by replacing higher-wage employees with lower-wage entrants. But, the National Treasury has a tricky balancing act in trying to ensure that the government does not lose vital skills that are needed to ensure it can deliver services effectively.
Up to 30,000 state employees are expected to opt for early retirement under this programme, resulting in savings of up to R7.1 billion per year. Those wishing to pursue this option will have to apply, with approvals given only by the relevant executive authority. State workers aged between 55 and 60 are likely to be offered two weeks’ pay for every year they have worked, up to a maximum of 20 years and one week’s pay for every year they have been employed after that. No penalties will be imposed on employees opting into the Early Retirement Programme.
- Read the full original of the report in the above regard by Shaun Jacobs at Daily Investor
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