Senior public sector pay increases see the rich get richer …

Detailed summary

‘The levels of inequality in this country are just so stark, and increases for the top income earners does not have good distributional effects in the economy. Plus, what are they being rewarded for?’ – Dr Mzwanele Ntshwanti, Institute for Economic Justice.

JIMMY MOYAHA: The Presidency has approved the 3.5% wage increase for government officials. This will apply to members of the National Executive, members of the National Assembly and the National Council of Provinces, premiers, members of provincial legislature and provincial executive councils.

There has also been a separate 4% increase approved for members of the judiciary.

This means the increase in salaries will set back the fiscus around R530-odd million in additional salaries on top of the already R400 billion public sector wage bill we currently have.

We’re going to take a closer look at this increase and its implications with senior researcher at the Institute for Economic Justice, Dr Mzwanele Ntshwanti. He joins me on the line now to see what we make of this.

Mzwanele, lovely having you on the show, as always. Thanks so much for taking the time.

What do you make of this particular wage increase? It’s not uncommon for wage increases to take place, but we do also know that South Africa has quite a significantly sized public sector wage bill – and one wonders whether or not this increase is an affordable one, surely.

MZWANELE NTSHWANTI: Thank you so much, Jimmy, and good evening to you and the listeners.

One, because as you have indicated, we do have quite a sizeable wage bill.

And two, we have been having a serious problem in terms of basic and public services.

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