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State salaries top private sector

Johannesburg - One in eight South Africans work in the public sector, where salaries are 44% higher than in the private sector, according to survey results released by the SA Institute for Race Relations (SAIRR) on Tuesday.

Its total for the number of people employed in this sector was 1.61 million - 13% of the 12.8 million people employed.

However, the actual number of people working the public sector is higher because it excludes employees of 280 public institutions such as water boards and liquor and tourism boards.

The exact number of these people was not available as there was no data.

"The figures include 1.27 million people working in national and provincial departments, up from 1.01m in 1999," said SAIRR.

"In addition, there are 240 000 local government employees and 94 000 employed in the eight state-owned enterprises which report to the department of public enterprises (Alexkor, Broadband Infraco, Denel, Pebble Bed Modular Reactor, SAA, SA Forestry Company Limited, SA Express and Transnet)," it said.

Researcher Lucy Holborn said: "It is important that we keep track of the size of the public sector. Personnel accounts for nearly a third of total government spending in the 2010/11 budget."

She said public sector wages were also increasing at a faster rate than average private sector wages.

"In 2000, average public sector earnings were 12% higher than those in the private sector. In 2010, they were 44% higher than those in the private sector."

Last year, public servants went on strike for a 12% increase and R1 000 housing allowance, compared with the government's offer of a 6.5% increase and R700 for housing. Unions eventually accepted 7.5% and an R800 housing allowance.
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