Minister Announces 4% Wage Increase for Public Servants

Cape town: Public Service and Administration Minister, Inkosi Mzamo Buthelezi, has announced a 4% wage increase for public servants. The adjustment, effective from 1 April 2026, applies to employees on salary levels 1 to 12 and those covered by Occupation Specific Dispensations (OSDs). According to South African Government News Agency, the increase gives effect to the Public Service Co-ordinating Bargaining Council (PSCBC) Resolution 1 of 2025, which established a multi-year wage framework for the public service. Minister Buthelezi emphasized the significance of this adjustment, stating it reflects the government's commitment to maintaining stability in the Public Service and upholding collective bargaining agreements. By adhering to the 'floor' mechanism within PSCBC Resolution 1 of 2025, the increase provides a buffer against inflation, projected at 3.4%, ensuring public servants on salary levels 1 to 12 receive a meaningful wage adjustment. The 4% cost-of-living adjustment is designated for the 2026/2027 financial year, as confirmed by the Department of Public Service and Administration (DPSA). Despite the National Treasury projecting the Consumer Price Index (CPI) for 2026/27 at 3.4%, the collective agreement's 'floor' and 'ceiling' mechanism mandates a 4% increase. This adjustment is a pensionable salary increase for all qualifying staff. The directive specifically addresses employees appointed under the Public Service Act, 1994. However, certain groups are excluded from this specific circular, as their adjustments are managed by their respective Executive Authorities. This includes the Senior Management Service (SMS) on salary levels 13 to 16, Sectoral Personnel under various Acts, and NPA Personnel under the National Prosecuting Authority Act. Beyond the standard salary scales, the circular outlines other critical areas of public service remuneration. This includes pay progression for the 2025/26 performance cycle beginning 1 July 2026, adjustments in stipends for interns to align with new salary scales effective 1 April 2026, recalculations of hourly and daily rates for contract or casual workers, and revised sessional rates for healthcare and social service professionals. Minister Buthelezi highlighted the importance of these measures, particularly in supporting the future of the workforce by ensuring that intern stipends and developmental programs adjust in line with the new scales. This is part of a broader effort to build a capable, ethical, and developmental state.