20°C / 22°C
  • Mon
  • 17°C
  • 2°C
  • Tue
  • 18°C
  • 3°C
  • Wed
  • 21°C
  • 3°C
  • Thu
  • 21°C
  • 5°C
  • Fri
  • 19°C
  • 3°C
  • Sat
  • 21°C
  • 6°C
  • Mon
  • 21°C
  • 12°C
  • Tue
  • 19°C
  • 10°C
  • Wed
  • 18°C
  • 11°C
  • Thu
  • 17°C
  • 11°C
  • Fri
  • 16°C
  • 13°C
  • Sat
  • 14°C
  • 10°C
  • Mon
  • 18°C
  • 5°C
  • Tue
  • 19°C
  • 5°C
  • Wed
  • 22°C
  • 4°C
  • Thu
  • 23°C
  • 6°C
  • Fri
  • 21°C
  • 6°C
  • Sat
  • 22°C
  • 9°C
  • Mon
  • 20°C
  • 2°C
  • Tue
  • 19°C
  • 3°C
  • Wed
  • 21°C
  • 3°C
  • Thu
  • 21°C
  • 3°C
  • Fri
  • 22°C
  • 3°C
  • Sat
  • 21°C
  • 4°C
  • Mon
  • 24°C
  • 14°C
  • Tue
  • 23°C
  • 13°C
  • Wed
  • 23°C
  • 13°C
  • Thu
  • 23°C
  • 14°C
  • Fri
  • 22°C
  • 13°C
  • Sat
  • 23°C
  • 14°C
  • Mon
  • 26°C
  • 21°C
  • Tue
  • 23°C
  • 14°C
  • Wed
  • 18°C
  • 14°C
  • Thu
  • 18°C
  • 12°C
  • Fri
  • 18°C
  • 13°C
  • Sat
  • 17°C
  • 14°C
  • Mon
  • 24°C
  • 12°C
  • Tue
  • 19°C
  • 10°C
  • Wed
  • 18°C
  • 10°C
  • Thu
  • 17°C
  • 7°C
  • Fri
  • 18°C
  • 10°C
  • Sat
  • 14°C
  • 9°C
  • Mon
  • 21°C
  • 14°C
  • Tue
  • 17°C
  • 13°C
  • Wed
  • 16°C
  • 11°C
  • Thu
  • 16°C
  • 10°C
  • Fri
  • 16°C
  • 12°C
  • Sat
  • 14°C
  • 10°C
  • Mon
  • 19°C
  • 6°C
  • Tue
  • 20°C
  • 5°C
  • Wed
  • 23°C
  • 5°C
  • Thu
  • 23°C
  • 5°C
  • Fri
  • 22°C
  • 6°C
  • Sat
  • 23°C
  • 5°C
  • Mon
  • 18°C
  • 1°C
  • Tue
  • 18°C
  • 3°C
  • Wed
  • 18°C
  • 2°C
  • Thu
  • 19°C
  • 2°C
  • Fri
  • 20°C
  • 3°C
  • Sat
  • 16°C
  • 5°C
  • Mon
  • 19°C
  • 7°C
  • Tue
  • 22°C
  • 6°C
  • Wed
  • 23°C
  • 5°C
  • Thu
  • 23°C
  • 4°C
  • Fri
  • 22°C
  • 6°C
  • Sat
  • 25°C
  • 4°C
  • Mon
  • 26°C
  • 19°C
  • Tue
  • 22°C
  • 13°C
  • Wed
  • 16°C
  • 13°C
  • Thu
  • 18°C
  • 11°C
  • Fri
  • 18°C
  • 12°C
  • Sat
  • 15°C
  • 13°C

SA govt eyes staff cuts, hiring caps after wage deal

The budget deficit and public debt ballooned while economic growth slowed to a near standstill in nine years under former president Jacob Zuma.

Picture: www.treasury.gov.za.

JOHANNESBURG - South Africa’s government is considering layoffs and early retirement packages for staff in the public sector to avoid breaking its pledge to cut spending after unions clinched above-inflation wage increases, the Treasury said on Friday.

Under a deal reached in May, the government will raise salaries of public sector employees, including teachers, police, and nurses, by up to 7% this year and by 1% above inflation in the two years after that.

While the increase is less than the 12% unions wanted, it was above the 4% the Treasury planned for in its February budget when it outlined plans to reduce the country’s large debt pile to stave off rating downgrades.

The Treasury said that the “government has indicated on several occasions that a wage agreement that departs significantly from inflation would need to be accommodated within announced expenditure limits, failing which such an outcome could have adverse consequences.”

Specific details on the measures would be given at a later stage, the Treasury said.

South Africa’s budget deficit and public debt ballooned while economic growth slowed to a near standstill in nine years under former president Jacob Zuma.

New President Cyril Ramaphosa promised to implement wide-ranging reforms after being elected in February to try to kickstart economic recovery.

The country narrowly escaped ratings downgrade to full-blown junk status with S&P Global Ratings Moody’s and Fitch Ratings, which kept the credit scores unchanged in reviews released in March and June this year.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus