The latest comparison of government wages and subsidies in South Africa reveals a stark disparity between social assistance and public sector pay. This information comes courtesy of the 2024 Treasury Macroeconomic Policy Review, as reported by Daily Investor.
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A candid comparison of government salaries and subsidies in South Africa shows that the average government salary is: R465,000 per year (R38 750 By month). Additionally, civil servant salary bills have skyrocketed over the past decade.from R408 billion In 2013/2014, currently R724 billion In 2023/2024.
Government wages and subsidies in South Africa
Let's not forget about it 30 million People in South Africa live in poverty. So their income is: R760 per month – by Social Policy Initiative. Compare this to South Africa's government wages, which are among the highest in the world.
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As the South African newspaper reported, government salaries have quadrupled in just 10 years. And during this period, the number of billionaire civil servants increased from 10,000 to 55,000. It seems like it pays to get a fancy government job.
South Africa's subsidies remain flat
Meanwhile, the South African Social Security Agency's spending on its poorest citizens has remained roughly flat for 30 years, adjusted for inflation, since the dawn of democracy. Next month (April 2024), all SASSA grants will increase. However, it is also known that SASSA's state pension pales in comparison to similar schemes abroad, with average payments ranging from four to eight times lower in Europe.
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A closer look at the Treasury report shows that most agency personnel remained the same during the review period. 1.25 million employee. The government has indeed sought to slow public sector wage growth.Wage growth rate has been declining for some time 35.7% to 32.1%as a percentage of government spending.
public sector wages
Despite this, Finance Minister Enoch Godongwana 7.5% even if wages go up 4.5% This is the amount originally agreed upon and has been adjusted to account for the high cost of living.This allows additional R23.6 billion Burdens on South Africa's national budget.
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Despite the slowing rate of growth in public wages, the sad fact is that while government salaries continue to grow at a significantly higher rate, social grants have not increased in line with annual inflation. not.
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