The government and unions representing the country’s more than 1.3-million public servants have signed a three-year wage deal that will result in teachers, soldiers, nurses and doctors receiving an above-inflation pay hike of 5.5% in 2025/26.
Public service co-ordinating bargaining council (PSCBC) general secretary Frikkie de Bruin said on Wednesday the wage negotiations were concluded after it secured a majority agreement of 84.34% after a 21-day consultation period.
Wage increases for 2026/27 and 2027/28 will be linked to the consumer price index (CPI).
The wage talks started off with the government offering 3%, which it increased to 4.7%, and then 5% before finally settling at 5.5%. The revised offer caused unions to slash their demands from 12% to 6% for 2025/26. Consumer price inflation is forecast to average 4.5% in 2025.
The 5.5% deal cements the R700bn-plus wage bill as a big, unpredictable factor amid SA’s efforts to stabilise its finances.
It could also put pressure on finance minister Enoch Godongwana, who postponed his 2025 budget speech on Wednesday until next month, to make good on his promises to convince 30,000 public servants over the age of 55 years to take early retirement packages as part of his broader plan to bring down the wage bill. The Treasury hopes to save R2bn annually from the initiative.
As sweeteners to the pay deal, the government has offered various increases including the homeowners’ allowance (from R1,784 to R1,900 effective April 1); danger allowance (R632.29 to R650); special danger allowance (R931.82 to R950); and service allowance for police (R700 to R950).
De Bruin said allowances regarding the death grant, childcare and breastfeeding facilities, recruitment policy, bursary scheme for public servants’ dependants, standardisation of uniform policy and comprehensive danger insurance, among other things, would be researched and position papers developed for future negotiations.
“The PSCBC commends both employer and labour parties for their dedication and constructive engagement in working towards the agreement. Their continued commitment to dialogue and engagement demonstrates a shared vision of promoting harmonious labour relations and sustainable solutions for all stakeholders,” he said.
Reuben Maleka, general manager of the 245,000-strong Public Servants Association, said: “We have settled at 5.5%. This is a good deal under the circumstances and we believe it would actually make a difference. It was supported by almost all the parties in the bargaining council. It’s indeed a step in the right direction.”
Waheed Hoosen, general secretary of the Health & Other Services Personnel Trade Union of SA (Hospersa), said: “We tried to get the best deal possible out of a very challenging economy. It’s the best deal we could get for our members under the prevailing conditions.
“We pushed the employer hard for a double-digit increase but it was not possible. Our members then gave us a mandate to take the offer. We are satisfied with the offer, but not totally happy because there are lots of issues that still need to be addressed, such as the issue of personal protective equipment,” Hoosen said, adding that it was hoped the wage deal would bring stability to the sector in the next three years.
December Mavuso, deputy general secretary of the National Education Health and Allied Workers’ Union (Nehawu), said: “We are still finalising our mandate-seeking process. Our process took a bit longer. We should be ready to pronounce on Thursday, [or the] latest Friday.”
Police and Prisons Civil Rights Union spokesperson Richard Mamabolo said: “The majority of our members have said we should … sign the wage deal. We’ve done sufficient consultations.”
Meanwhile, National Professional Teachers’ Organisation of SA executive director Basil Manuel said: “We are thrilled that a majority has been attained, virtually all the unions have signed. We are happy with some of the things we have got as part of the wage agreement.
“We know that everyone wants a 100% wage increase but it’s not possible. And the fact that this is a three-year agreement will relieve us of the need to bargain over the next years. All in all, we are pleased.”
Nursing union Denosa spokesperson Sibongiseni Delihlazo and Mugwena Maluleke of the SA Democratic Teachers’ Union could not immediately be reached for comment.
Update: February 19 2025
This article has been updated with new information.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.