
Johannesburg – The Public Servants Association (PSA), representing more than 250,000 public-sector workers, is commencing a member mandating process regarding the government’s final proposition on cost-of-living adjustments and improvements in service conditions for public servants.
After initial negotiations on 8 January 2025, during which the government proposed a 5% salary increase as part of a multi-term agreement, additional talks were held on 20 January 2025.
“These negotiations culminated in a definitive offer that includes significant enhancements across various crucial areas,” the PSA stated.
The updated proposal features a cost-of-living adjustment with a 5.5% salary increase for the 2025/26 financial year, which is an improvement over the original 5% proposal.
For the financial years 2026/27 and 2027/28, salary adjustments will be aligned with the Consumer Price Index (CPI), with increases capped between 4% and 6%.
The Housing Allowance is scheduled to increase from R1,784.55 to R1,900 in April 2025, along with an additional CPI-based adjustment in July 2025.
“Further enhancements include changes to the individual-linked savings facility, allowing employees who resign or are terminated to access the total value of their savings under PSCBC Resolution 7/2015 starting 1 April 2025,” the PSA clarified.
Medical aid adjustments will also be implemented, reflecting the Medical Price Index (MPI) for the 2025/26 financial year, with increases of MPI + 0.5% for the financial years 2026/27 and 2027/28.
Proposed improvements to allowances include an increase in the Danger Allowance from R623.29 to R650 in April 2025, followed by another CPI-based adjustment in July 2025.
The Special Danger Allowance is set to rise from R931.82 to R950 in April 2025, with another CPI-based increase planned for July.
The Service Allowance for Police is anticipated to increase from R700 to R950 in April 2025.
“In addition to these financial adjustments, the government and labor organizations have reached an agreement to address further demands through working committees and a collective agreement,” the PSA remarked.
These discussions will involve frameworks for a death grant, research and proposals for comprehensive danger insurance, readiness evaluations for childcare and breastfeeding facilities, as well as the establishment of a bursary scheme for the dependents of public servants.
Other initiatives include a review of recruitment practices, updates to the uniform policy, and consultations regarding a revamped incentive policy framework.
The PSA has called upon its members to actively participate in the voting process to either accept or reject the offer.
“Should the proposal be accepted, the multi-term agreement will be fully binding and will govern the working conditions and benefits of public servants for the next three years,” the union concluded.