Public sector wages under the spotlight as Gigaba seeks a solution

A civil service wage agreement surpassing Consumer Price Index (CPI) inflation by even one point will substantially widen the current shortfall in departmental budgets by billions of rands and further crowd out other areas of spending. The Medium-Term Budget Policy Statement (MTBPS), tabled on Wednesday, revealed that National Treasury expenditure estimates for national departments exceed next year’s budgeted compensation ceilings, even with stable personnel numbers and CPI-aligned salary increases.