SARS insists on 1.5% wage increase

SARS insists on 1.5% wage increase

The South African Revenue Service (SARS) is not budging  on its 1.5% final wage increase for workers affiliated to the National Education Health and Allied Workers’ Union (Nehawu) and the Public Servants Association (PSA).

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The unions downed tools at the tax authority earlier this month, demanding salaries be adjusted based on the October 2021 CPI plus 7% across the board, backdated to April this year.


The taxman's initial offer was a 1.39% increment, which has now gone up to 1.5% increase.


In a statement released on Wednesday, the revenue service says it relies on funding allocation from the National Treasury. 


"Should the broader public sector negotiations be resolved at an increase of higher than the 1.5%, National Treasury will accordingly make additional funding available towards the settlement agreement. SARS will be guided by this and adjust its offer to its employees to be on equal terms," it said.


The revenue service says PSA has agreed to suspend the strike, while NEHAWU has not formally communicated its intentions.


"SARS has noted with concern various isolated incidents of intimidation and violence committed by some strikers, and it will take necessary action against the strikers that are violating its Code of Conduct, and/or those who have broken the law,” they add.


SARS reaffirmed its commitment to respect the right of employees to strike.


“The strikers are enjoined by labour law provisions to exercise this right peacefully and respect the rights of employees who choose to work, as well as taxpayers who seek to fulfil their obligations in law.


SARS has put contingency measures in place to mitigate the negative impact on services as far as possible," it says.


SARS has warned customers to avoid its branches.


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