Mon Sep 01 20:52:08 SAST 2014

Government money mostly spent on salaries

By Sapa | Nov 28, 2012 | COMMENTS [ 47 ]

And it is paying big bucks too - Nearly 40% of the highest-earning black South Africans are government employees

The government has misled South Africans about how much of the national budget is spent on the salaries of civil servants, Prophet Analytics claimed on Wednesday.  

“The government is wrong when it states that only 35% of the annual budget is spent on wages. The true figure is 88 percent...,” analyst Peter Aling said in a statement.  

The government had also misled analysts by appearing to agree to 5.4% wage increases for civil servants, he said.  

This was according to Prophet Analytics’ fourth quarter 2012 Labour Market Navigator Report.  

The report indicated an increase in the salaries earned by black civil servants and the proportion of black government employees.  

In the past 10 years, the percentage of black civil servants had increased from 42 to 74, and nearly 40% of South Africa’s highest-earning blacks were now government employees.

Aling attributed sharp rises in black civil servants’ salaries to “managerial bloat”, claiming the government used promotion and job re-grading to increase their incomes.  

“This results in the average remuneration for public sector workers now [being] 32% higher than that of private sector workers.” 

If historical rates of progression were maintained, 5.1 million black people would be earning more than the average white person in private business by 2020, he said.  

Racial income disparities were steadily, if slowly, closing.  

“This is apparent from current census results showing that black incomes grew 10.4% per annum between the censuses, compared to the 6.5% growth in white incomes,” Aling said.  

Measures to speed up this process included improving the education system and reviewing labour laws, he said.  

The National Treasury could not immediately be reached for comment.

COMMENTS [ 47 ]

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@BrizzyPistol7 - Get this straight - Stop telling us what the Government pays for - THERE IS NO SUCH THING AS GOVERNMENT MONEY, FINANCIAL AID, GRANTS etc etc etc - IT'S TAX MONEY !

The Government does not have, or earn any money or produce anything !!!!

South African GDP is produced by the TAX PAYER. ( Over 85% from Private Sector )

Only registered Tax Payers working in the private sector should be allowed to vote.
No Votes allowed from Government / Parastatal employees.

Get a real job in the private sector you looser

Dec 01, 2012 6:5 | 0 replies

@MommaC

All govt annual reports are feely accessible on the internet, you can randomly select an entity or parastals and verify whether money was paid to govt officials for attending board meetings or audit committee meetings.

A CFO of an entity earns around R1m per annum, compare that to what the CFO of vadacom, MTN or pick n pay earns......

You are just shooting from the hip and not putting facts on the table....

Nov 28, 2012 4:1 | 0 replies

@MommaC,

I said govt dept, not parastatals or entities, clearly you have selective reading.
and for your information, govt employees are not allowed to earn money for any board meetings If they are part of the board of an entity or parastatal not earn money for attending audit committee meetings. PLEASE CHECK YOUR LEGISLATION....

Nov 28, 2012 3:55 | 0 replies

BrizzyPistol7

What?
You are seriously behind in what you know about the salaries of the big boys in the parastatals and other government operations. Not only do they earn much more than that, they demand payment for every meeting they attend.

Nov 28, 2012 3:51 | 0 replies

!#Sinudeity#!
This is setting quite a destructive trend. In that, black folks cannot make it in the private sector, but only in the public sector.
========================

What is the basis for your statement?????

Nov 28, 2012 3:46 | 0 replies

This is setting quite a destructive trend. In that, black folks cannot make it in the private sector, but only in the public sector.

Nov 28, 2012 3:41 | 0 replies

Nothing new here, this is how the previously advantaged managed to pay up their Bonds, cars, education, etc.

The difference is that this is a new generation of looters. Thieves are recycled like Kings, Ideologists, Preachers, Companies, etc.

Life revolves not evolve as the academics put it; it is surprising to see them surprised.

Nov 28, 2012 3:31 | 0 replies

@16-12-1838,

You need to deepen you knowledge of public sector. A director or CFO do not have spokespersons, there is one spokesperson for the entire dept.
You only focus on what is reported in newspapers abt the flaws of our govt and forget all the positive which has been accomplished,i.e. Hospitals built, schools built, food gardening project for poor households, bursaries given to millions of students.

Govt employees pay tax at the normals rates (18%,25%,28%,etc) according to how much you earn.

Nov 28, 2012 3:23 | 0 replies

@BrizzyPistol7
@ Shredder,
How does what what???
========================================================
I wanted you to expound further, I didn't want to assume the figures.

Nov 28, 2012 3:17 | 0 replies

BrizzyPistol7

Firstly - Like I said, numeracy skills are seriously lacking in SA...and exactly how much does the govt dept with a CFO earning R890,000 and his team of spokespeople and senior administrators and their team of clerks and junior administrators ....and that same dept's director on R600,000 and his team of spokespeople and senior administrators and their team of clerks and junior administrators...and etc.....actually contribute to the GDP of this country? Also, how much CIT (Corporate Income Tax - for all you civil servants!) does that same dept pay towards fuelling the anc gravy train? What....How much?.....Can't hear you?

Secondly - This govt doesn't need any help discrediting itself, they do an absolutely fantastic job all by themselves! Nothing but a bunch of corrupt, incompetent, thieving, lying and despicable gangsters...prove me wrong!

Nov 28, 2012 3:11 | 0 replies

BrizzyPistol7

Every meeting board meeting ever that requires a government official (from anywhere in the world), they have been paid to attend. The only one who isn't paid is the poor sod who calls the meeting. Parastatals are part of the government.

Your CFO is the equivalent of a branch manager - not a company CEO. They get paid far more than private management does. Private companies also give bonuses according to performance. Our government seems to give huge bonuses if they LOSE money or don't get a clean audit. Compare apples with apples and not apples with watermelons.

Nov 28, 2012 4:12 | 0 replies