The new public protector says she will leave the dispute over the state capture report prepared by h.
FINANCE Minister Pravin Gordhan has told government departments there will be no extra money for public service wage hikes above expected inflation over the next three years.
The Treasury said it would not fund wage increases above six percent next year, 5,6percent in 2011-2012 and 5 percent in the year to March 2013.
"Any salary increases above the budgeted rate should be funded from departmental baselines. No additional funds will be allocated for this purpose," the Treasury note said.
This means that any department giving increases above these projected inflation levels will have to cut other approved spending to fund them.
The guidelines were published as Cosatu increased pressure on President Jacob Zuma's new government for substantial increases in a number of sectors as well as full implementation of unfulfilled promises to highly trained public servants, including doctors.
Cosatu general secretary Zwelinzima Vavi has warned the government it faces the biggest ever public sector strike if it does not address low salaries, which he referred to in a letter as "a ticking time-bomb".
In the last formal settlement in 2007, public sector workers were given increases above inflation with additional commitments to improved health care, housing and other benefits.