South Africa’s public sector wage agreement is expected to cost taxpayers R49.8 billion over the next two financial years.
The public sector wage agreement signed last year is expected to cost the national fiscus an estimated R49.8 billion over the next two financial years.
This was revealed by Finance Minister Enoch Godongwana in a written parliamentary reply to a question from Democratic Alliance (DA) MP Farhat Essack, who asked about the projected financial impact of the current public sector wage agreement on the national fiscus over the Medium-Term Expenditure Framework (MTEF) period.
Godongwana said the three-year wage agreement, which covers the 2025/26 to 2027/28 financial years, is expected to cost R24.3 billion in 2026/27 and R25.5 billion in 2027/28.
The agreement includes adjustments to salaries, medical subsidies, housing, danger and service allowances.
