But Mboweni said he was projecting for the public sector wage bill to peak at just under R660bn in 2024 as he pushes for modest increases and other measures to trim the salary bill.
“These growth rates can be achieved through, for example, doing away with annual cost-of-living adjustment in the public service until 2023/2024, together with measures to reduce head counts, a combination of early retirement and natural attrition, as well as freezing or abolishing of non-critical posts.
“In addition, government is exploring measures such as harmonising allowances and benefits, reconsidering pay progression rules and reviewing occupation-specific dispensations.”
Mboweni said they would continue these negotiations at the Public Service Co-ordinating Bargaining Council.
“Government will negotiate on the basis of fairness, equity and affordability. A pact that exceeds the budgeted amounts would present a risk to the fiscal framework.
“For example, a three-year inflation linked agreement would raise the total shortfall to R112.9bn by 2023/2024. And an agreement similar to the one achieved in 2018 (one percentage point higher than inflation) would create a compensation shortfall of R132bn by 2023/24.”