Treasury: Everyone ‘must feel the pain’ of wage bill cuts
Treasury director-general Dondo Mogojane says all public servants should “feel the pain” of the reduction in the public sector wage bill, as government battles to stabilise one of its biggest expenses.
“What should be in consideration should also be looking at other areas in terms of what the minister said and that everyone must feel the pain,” he said.
“State-owned companies and entities, members of the legislature, provincial, national. He made it clear that we must look at this including all senior officials and political office bearers. It is important that pain is felt and not only the working class.”
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Magojane was speaking at a Medium Term Policy Budget Statement media briefing on Wednesday.
Earlier on Wednesday, Minister Mboweni confirmed that the public sector wage bill has grown by 7.2% year-on-year, which is well above inflation.
Mboweni said the wage bill will have to grow much slower over the next five years.
“Consideration should be given to the proposal for across-the-board compensation pay reductions to management-level positions, across national, provincial and municipal governments, state-owned entities and all other senior public representatives.
“We have a fiscal framework that we need to protect. We have a fiscal stance that needs to be protected. We have managed our finances much better. We are in a bind and I think that everyone understands that. That is the point from where I proceed and I have to be optimistic that a solution will be found to not break the fiscal framework.”
The public sector wage cost the government a whopping R567 billion during the 2019/2020 financial year.
