Business Tech World

Public sector managers receive R450 million salary increases

Public Service and Administration Minister Ayanda Dlodlo has reportedly awarded a R450 million salary increase to public sector executives.

According to the DA, this latest salary increase follows a salary increase of R30 billion last year for lower levels of public service.

“This is a death knell for years of empty promises by” President Cyril RamaphosaLeon Schreiber, MP for the DA and spokesman for public service and administration, told the US government it would freeze public sector wage bills to avert a full-blown debt crisis.

The soft increases come just days after Ramaphosa told the nation the government could not create jobs for the more than 10 million unemployed, leaving the mammoth task to the private sector to solve.

“The Ramaphosa government has just taken $450 million in taxpayers’ money from the pockets of the private sector and transferred it to the executives of the millionaires who are destroying both the state and the economy,” Schreiber said.

Even with the highest unemployment rate ever and two years of lockdowns destroying millions of livelihoods, Ramaphosa appears to be putting political interests ahead of the country’s needs.

The DA believes this R450 million salary increase is intended to buy support ahead of the upcoming ANC electoral congress expected to take place in December.

Ramaphosa is running for a second term as ANC president. He faces competition from the Minister of Tourism and the combative candidate Lindiwe Sisulu, who has thrown her hat in the ring for the top job.

“This prohibitive increase includes a monthly retirement allowance of R1 695 for salary levels 13 to 15, R1 818 for salary levels 16 and a 1.5% salary increase for levels 13 to 16 – all retroactive to April 2021,” said Schreiber.

The salary increase paid to the 712 highest paid managers (level 16) in the public service and backdated to April 2021 will cost South Africans more than R38 million.

This equates to a payout of over R53 000 per person for a total of 11,305 senior ANC managers.

These calculations are based on a parliamentary response to the public service salary distribution that the DA received in October 2021, with the following distribution:

salary band Number of employees Cost of non-pension basis (with retroactive effect 12 months) Cost of 1.5% salary adjustment (with retroactive effect 12 months) Total
13 7660 R155 804 400 R132 656 385 R288 460 785
14 2405 R48 917 700 R50 147 295 R99 064 995
15 528 R10 736 280 R13 181 370 R23 917 650
16 712 R15 532 992 R22 499 160 R38 032 152
TOTAL R449 475 582
source DA

“Following his commitment at SONA to put the private sector first, this is a grave betrayal of the hard-working private sector workers and job creation in South Africa.

“The DA will be filing an application under the Promotion of Access to Information Act (PAIA) to verify that all regulatory requirements were met prior to announcing this excessive increase,” concluded Schreiber.

compiled by Narissa Subramoney

ALSO READ: ‘R3m in a sea of ​​poverty’ – DG Public Works earns a lot while doing nothing

Leave a Reply

Your email address will not be published. Required fields are marked *