By Enyichukwu Enemanna
South Africa’s public sector unions on Friday accepted an offer for a pay rise to the tune of 7.5%, following prolonged strike in its fifth month, the government announced in a statement.
The unions in the public sector represent approximately 1.3 million workers and had been taking part in varying degrees of demonstration since November 2022.
Salary negotiations began in May, with unions initially demanding a 10% increase which the government rejected.
The workers had insisted on wage increase to manage the shock of increasing living cost and inflation.
The two-year, multi-term deal is higher than what the government had factored into its 2023 budget. The government will put efforts to manage the increase in wage bill arising from the increase.
In subsequent negotiating rounds, the unions reduced their demands to an 8% increase and the continuation of a monthly 1,000 rand ($54.71) cash payment.
The final settlement will see the cash gratuity continued for one year, the government said.
The public sector wage bill makes up about a third of total government expenditure. The treasury had factored in an annual increase of 3.3% to 2025/26.
