State unlikely to freeze public-sector wages for three years, says Fitch

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Ratings agency says SA is at risk of spending overruns, with payroll and state-owned entity reforms crucial to reduce budget deficits

As parties in the Public Service Co-ordinating Bargaining Council continue to look for mechanisms to break the wage deadlock, Fitch Ratings said on Tuesday the government is unlikely to meet its goal of freezing public-sector salaries for three years.

The wage bill has been increasing exponentially over the years, escalating from R154bn in 2006/2007 to R518bn in 2018/2019. It increased to about R630bn in the past financial year...A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

 

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