The South African government has rejected public-sector workers’ demand for a 12% pay increase, labeling it as unaffordable.
- The state has instead offered a 3% raise, arguing that the workers’ proposal would require R140 billion.
- The government has urged labor unions to reconsider their demands and seek a more feasible approach.
- Discussions are set to continue in October, with a mid-term budget update scheduled for October 30.
- The 3% raise proposed is below the current inflation rate of 4.6%, which is expected to decrease further.
- The Public Servants Association of South Africa, representing about 242,000 workers, has rejected the 3% offer and will formally decline it, while also seeking increases in housing and danger allowances.