Public sector wage deal will cost R20bn, Treasury tells parliament

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The National Treasury said in a presentation before a parliamentary committee that the R20bn cost was above the compensation ceiling contained in this year's February budget.

A wage agreement between the government and civil servants for the 2021/22 fiscal year will cost about R20bn, the National Treasury said on Wednesday.

Trade unions initially demanded far larger above-inflation increases. The government, however, wanted to keep salaries flat to rein in a gaping budget deficit worsened by the Covid-19 pandemic.

 

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