Govt considering laying off 30 000 public servants - report

Government may lay off 30 000 public servants in an effort to cut the public sector wage bill. 

The Mail & Guardian on Friday reported the process would take place over three years and could save up to R20bn, according to sources who attended the Cabinet lekgotla earlier in the week. 

An unnamed senior government official told the newspaper that National Treasury has set aside R4bn for severance packages.

In the National Budget for 2017, Treasury had indicated that government was considering introducing voluntary severance packages to contain the wage bill, Fin24 previously reported.

Government recently signed a three-year multi-term public service wage agreement, which sets aside R110bn for salary adjustments. This exceeds the 2018 medium term expenditure framework by R30bn.

• READ: Public service wage hikes exceed budget by R30bn

The Department of Public Service and Administration (DPSA) at the time said the adjustment requires cost containment measures to ensure the wage bill remains within existing compensation ceilings.

Neither Treasury nor the DPSA immediately responded to Fin24 requests for more comment on Friday.  

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