{"id":75737,"date":"2024-10-30T18:11:00","date_gmt":"2024-10-30T18:11:00","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/r11bn-to-encourage-older-civil-servants-to-retire-early"},"modified":"2024-10-30T18:11:00","modified_gmt":"2024-10-30T18:11:00","slug":"r11bn-to-encourage-older-civil-servants-to-retire-early","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/r11bn-to-encourage-older-civil-servants-to-retire-early","title":{"rendered":"R11bn to encourage older civil servants to retire early"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>The National Treasury has set aside R11bn for the next two fiscal years to encourage older civil servants in non-critical skills jobs to take early retirement in a bid to curtail government\u2019s high wage bill.<\/p>\n

This is contained in the medium-term budget policy statement (MTBPS) presented to parliament by finance minister Enoch Godognwana on Wednesday.<\/p>\n

\u201cDetails will be set out in the 2025 budget,\u201d he said.<\/p>\n

In the MTBPS, Godongwana again pointed out South African public-sector wages, on average, \u201cwere well above that of many countries\u201d such as the US and the UK.<\/p>\n

\u201cCabinet has approved the early retirement programme to reduce government employment costs while retaining critical skills and promoting the entry of younger talent into the public service,\u201d he said.<\/p>\n

\u201cAccounting officers and executive authorities will have the authority to approve early retirement applications that do not reduce the pool of highly skilled people in government agencies.\u201d<\/p>\n

There would be no penalties attached to the early retirement programme, aimed at offering voluntary separation packages to at least 30,000 qualifying civil servants.<\/p>\n

Treasury director-general Duncan Pieterse said this was expected to save the government R2bn per year.<\/p>\n

According to Treasury documents, the civil service wage bill was projected to cost more than R298bn over the medium-term expenditure framework by 2027.<\/p>\n

Government and public sector unions are now in negotiations about a wage agreement for 2025\/2026. The government has put a 4.7% increase on the table, which is above the inflation rate of 3.8%.<\/p>\n

The wage talks began at the beginning of October at the public service co-ordinating bargaining council, where unions rejected government\u2019s salary increase offer of 3%.<\/p>\n

The government\u2019s 4.7% offer was in response to the union\u2019s demand for a 12% pay hike.<\/p>\n

At a closed pre-MTBPS briefing, Godongwana said negotiations facilitators have proposed the 4.7% be upped 1.3% in the next six months, to bring the increase to 6% which he said was not acceptable.<\/p>\n

Godongwana told MPs he was confident the negotiations would be concluded before the main budget in February 2025.<\/p>\n

\u201cNegotiations for a wage agreement set to begin in 2025\/2026 are under way and expected to conclude in time for the 2025 budget.<\/p>\n

\u201cGovernment is committed to a fair and respectful collective bargaining and negotiations process in determining remuneration levels and conditions of service while meeting its constitutional obligations to respect the budget process and deliver responsible and affordable fiscal policy.\u201d<\/p>\n

Over and above their basic remuneration, public servants also get paid fringe benefits such as a housing allowance, medical aid subsidy, pension support and sector specific allowances such as danger pay and uniform allowances.<\/p>\n

\u201cPublic service remuneration is a complex issue that requires a delicate balance between attracting and retaining skilled personnel, ensuring fiscal sustainability and promoting economic growth. It will be essential to implement these reforms that align public service compensation with broader economic growth while addressing the pressing issues of growing public service employment.\u201d<\/p>\n

<\/b><\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. The National Treasury has set aside R11bn for the next two fiscal years to encourage older civil servants in non-critical skills jobs to take early retirement in a bid to curtail government\u2019s high wage bill. 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