No new cash for public sector deal — Treasury

R1,000 after-tax cash gratuity at the value of 4.2% on the baseline, and a nominal increase of 3.3% across the board. The after-tax cash gratuity was set to expire on March 31.

“The non-pensionable cash allowance will be translated into the pensionable increase on the baseline with effect from April 1 2023, without disadvantaging any employee in terms of the cash net effect into the pocket,” Mushi said.

INFLATION

The pay deal also includes a pay progression of 1.5% for all qualifying employees and in the final year employees will receive an increase linked to projected consumer inflation, meaning if the consumer price index falls below 4.5% in 2024/25, workers will receive increases of 4.5%.

If it surges above 6.5%, the employer will implement a 6.5% increase.

Public Service Co-ordinating Bargaining Council (PSCBC) general secretary Frikkie de Bruin said the National Education, Health & Allied Workers Union, Democratic Nursing Organisation of SA and SA Policing Union “opted not to sign the agreement as per the mandate given by their members”.

DISPUTE

These unions are still in a dispute with the employer regarding negotiations for the 2022/23 financial year, where the employer dismissed their demands for increases of 10% and instead unilaterally implemented a 3% pay rise.

De Bruin said: “The PSCBC applauds parties to council for their commitment to the wage negotiation process, which resulted in the signing of the agreement before the commencement of the new financial year. The signing of the multiterm agreement allows for some stability to focus on implementing various PSCBC agreements, including the public sector summit agreement.”