Additional Funding Allocated To Cover Public Servant Salary Increase

Finance Minister Enoch Godongwana has announced R23 billion additional funding to cover the 5.5 public servants salary increase. But government has warned that only departments that have demonstrated the ability to reduce their wage bill will be entitled the funding to cover the new wage increment.

Government has set aside R11 billion to incentivise workers over 55 years to exit the public sector.

Minister Godongwana says the new 5.5 salary increase for 1.3 million government workers will kick-in on the first of April.

Madam Speaker, a three-year wage agreement has been reached. Although the agreement exceeds the 2024 Budget and Medium-Term Budget Policy Statement MTBPS projections, its duration reduces uncertainty in budget planning. This agreement will cost an additional R7.3 billion in 2025/26, R7.8 billion in 2026/27 and R8.2 billion in 2027/28 this is for the comrades marching for me outside.

Budget Speech 2025