South Africa President Cyril Ramaphosa has signed off on a 3% increase in the salaries of all public office bearers, according to a statement from the presidency.
(Bloomberg) —
South Africa President Cyril Ramaphosa has signed off on a 3% increase in the salaries of all public office bearers, according to a statement from the presidency.
The decision follows recommendations made by the Independent Commission for the Remuneration for Public Office Bearers that salaries of all public office bearers, including the likes of judges, magistrates and traditional leaders, be increased by 3.8% for the 2022/2023 financial year, according to the statement dated July 1.
“Having considered the commission’s recommendations and serious economic challenges facing the country, the president has decided that the salaries of all public office bearers be increased by 3%,” it said.
Ramaphosa has submitted the notice on his decision to parliament for approval before publication as far as it relates to salaries of judges and magistrates.
South Africa recorded a primary budget deficit in the year through March, missing National Treasury’s target for a surplus, after revenue collections fell short of estimates due to higher-than-anticipated value-added tax refunds.
Compensation accounts for almost a third of state expenditure and is crowding out spending on other priorities. Ratings companies have flagged the country’s wage bill as an ongoing risk to the economy.
Read more: South Africa Puts Budget Under Strain With 7% Pay Increase Offer
The country’s central bank has been implementing a restrictive policy stance in an effort to curb inflation that’s now at 6.3%. Gross domestic product in Africa’s most developed economy expanded 0.4% in the three months through March, after contracting a revised 1.1% in the previous quarter.
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