South Africa rejects civil servants’ 12% wage demand, proposes 3% pay increase

The South African government has rejected a demand from public-sector workers for a 12% salary increase, deeming it unaffordable, Bloomberg reported.

Instead, the state has offered a 3% raise, according to Frikkie de Bruin, general secretary of the Public Service Co-ordinating Bargaining Council, who spoke via phone on Wednesday.

De Bruin stated that meeting the workers’ proposal would require 140 billion rand ($7.83 billion), which is “totally out of budget.”

The government urged labour unions representing public-sector workers to reconsider their position and explore alternative approaches to their demands, De Bruin noted.

In addition to the 12% increase for the 2025-26 fiscal year, workers are also pushing for a 2,500-rand increase in their housing allowance and a raise in their danger allowance from 597 rand to 1,000 rand.

De Bruin added that the parties plan to resume discussions during “marathon negotiations” scheduled for the first week of October through mid-October, ahead of Finance Minister Enoch Godongwana’s mid-term budget update, expected on Oct. 30.