Pay hikes of 4% for top earners

PRESIDENT Jacob Zuma’s administration is on a collision course with public-sector unions after it emerged that he and his cabinet are in line for salary increases despite the country’s ailing economy.

The Cape Times’s sister paper, The Star, has seen the recommendations by the Independent Commission for the Remuneration of Public Office Bearers, which suggest 4% salary increments to be backdated to April for state high earners.

The move, coming amid a fraught relationship between the ANC and its ally Cosatu, has also angered the Public Servants Association.

During the recent MediumTerm Budget Policy Statement, Finance Minister Malusi Gigaba had to deal with tough questions regarding the bulging state wage bill which is gobbling money from the public purse.

There has also not been prudent management of taxpayers’ money. On Wednesday the Auditor-General reported R45 billion in irregular expenditure by government departments and state-owned enterprises.

Professor Raymond Parsons, of the North-West University School of Business and Governance, said yesterday that the commission would have not arrived at the percentages had it done consultations in the current period.

The increase will see Zuma’s salary going to just over R3 million per year, up from nearly R2.9m. Ramaphosa’s hike is recommended to jump to R2.8m from R2.7m.

Each of the 35 ministers is poised to rake in R2.4m per year, while the pay of their deputies would jump to R2m.

National Assembly Speaker Baleka Mbete and National Council of Provinces chairperson Thandi Modise would earn R2.8m, progressing from R2.7m.

MPs are due for 4.5% increments, which would see their pay jumping to almost R1.1m.

Salaries of DA leader Mmusi Maimane and ANC chief whip Jackson Mthembu are set to increase to R1.5m.

Premiers are recommended to earn R2.2m, while mayors are set to earn R1.3m.

Chief Justice Mogoeng Mogoeng is due to get R2.8m from R2.7m. Pay to the country’s 11 recognised kings is proposed to move from R1.12m to R1.17m.

Members of the lower bar are poised for 6% increments, but magistrates may not have a lot to smile about as their annual pay would continue to hover just under R1m.

The annual wage bill of the public office bearers covered by the remuneration commission stands at R12.2 billion.

In its document detailing recommendations, the commission stressed it had considered the strain the economy was under, hence it was proposing increases that were below inflation.

“Consideration was given to the consultations with the Finance Ministry and the dire straits faced by the economy in general, and the fiscus in particular,” said the commission’s report.

“The current economic difficulties cannot be ignored and the majority of citizens are adversely affected by the poor economic growth rates and and inflation.

“It is believed that the remuneration levels of the highest-earning public office bearers provide them with a greater portion of disposable income, which can act as a buffer against the effects of inflation.”

Zuma and the others did not get salary increases last year, based on the commission’s recommendations. They received a 5% increase in 2015.

The commission held consultations with Gigaba in April and August.

Parsons said: “One wonders whether the commission would have arrived at different recommendations if it was preparing them now, instead of earlier.

“Given these economic realities, although the commission’s proposal for the highest-paid public office bearers is below inflation at a relatively modest 4%, it would send a powerful message symbolically if political appointees (therefore excluding judges) earning more than R1.5m agreed to settle for a smaller or no increment in 2017/18.”

The increases look set to embolden public-sector unions who are locked in salary negotiations with the government. They seek 12% increases for more than two million public servants.

The wage talks, which are on hold, are expected to resume in January at the Public Service Co-ordinating Bargaining Council.

Cosatu spokesperson Sizwe Pamla said: “If there’s 4% increases for people who earn millions of rand, it means there’s enough money for people who are at the forefront of service delivery.”

Ivan Fredericks, general manager of the Public Servants Association, echoed Pamla’s sentiments.

“If the president and his cabinet and parliamentarians can give themselves 4%, making sure that they have a good life, we’ll not withhold when it comes to our salary negotiations. They would have to submit very good reasons why our people should not go on industrial action.”

There was no response to queries from Zuma’s spokesperson, Bongani Ngqulunga, by the time of going to press.