CAPE TOWN: The government’s salary bill could increase by more than R30 billion following the wage settlement between the state and unions at the Public Sector Co-ordinating Bargaining Council (PSCBC) on Wednesday.
The multiyear deal, struck on Tuesday night, includes a 7-percent increase this year, and an inflation, plus 1 percent adjustment in 2016 and 2017. Last month the Public Service and Administration Department raised concerns about the state’s ability to foot the wage bill, which could well be over R430bn.
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In addition, unions also got the state to agree to increase medical aid contributions to 28.5 percent, although the steep rise is because the employer had not adjusted contributions for the past three years. The agreement has been largely greeted with relief, as failure to conclude the talks could have led to a strike involving about 1.3 million public servants.
