Government raises wage offer to 7%, union says

Johannesburg - Government increased its wage offer for nurses, teachers and other state workers, according to Nkosana Dolopi, deputy general secretary of the South African Democratic Teachers Union.

The government’s latest three-year wage offer includes a 7% raise in the first year and consumer price inflation plus one percentage point for the following two years, Dolopi said on Monday by phone.

The housing allowance will rise to R1 200 from R900 a month and medical aid benefits will increase by 29%, he said.

“We will be consulting our members on the latest wage offer during the course of this week,” Dolopi said.

Unions representing 1.3 million state workers initially demanded a 10% pay increase, and the government was offering 5.8%. While South Africa’s inflation rate was 4% in March, the central bank forecasts higher fuel and power costs will drive it to more than 6% in 2015.

State personnel costs have surged 90% to R445bn since 2009 and account for almost 36% of total government spending, according to data from the National Treasury.

The February 25 budget provides for the wage bill to rise by an average 6.6% in each of the three years through March 2018.

The next meeting between government and the public sector unions will take place on May 15.