Batlile Phaladi
1 minute read
17 Apr 2015
5:14 pm

Government warns of high wage bill, recurring expenses

Batlile Phaladi

Government warned that any increase in the current Wage Bill “beyond what is budgeted will lead to borrowing for recurring expenses such as salaries, and impact negatively on operational budgets of departments, infrastructure development, employment creation, and service delivery”.

This after government said the current wage bill of R400 billion is set to grow to R430 billion in the 2015/16 financial year, which is said to constitute about 35.5% of the total government budget.

“For this reason, the employer believes that current offer is fair and reasonable and takes into account the current economic situation of our country whilst sufficiently cushioning the salaries of public service employees from the effects of inflation,” government said in a statement.

The current employer offer is estimated at R37 billion.

“This offer is inclusive of the Cost of Living Adjustment, plus other benefits for 2015/16 financial year.”

However, it said on Friday that it was satisfied with the progress made in the first week of conciliation.
“We are also confident that an agreement will be reached when parties convene at the bargaining council on 21 April 2015,” government said in a statement.