Following five months of strike activity, the majority of South Africa’s public sector unions agreed to a 7.5% salary raise on Friday, the government announced in a statement.
The two-year, multi-term arrangement will jeopardize efforts to control out-of-control public spending, experts previously warned. It is much more expensive than what the government had budgeted for in its 2023 spending plan.
Since November 2022, the unions in the public sector have participated in various forms of protest on behalf of the roughly 1.3 million workers they represent.
The government rejected the unions’ first proposal for a 10% pay raise when salary negotiations got underway in May.
The known unions lowered their demands in later rounds of negotiations to an 8% raise and the continuation of a monthly cash payout of 1,000 rands ($54.71).
The cash gratuity will remain under the final deal for a full year, according to the government.
The salary bill for the public sector accounts for around one-third of all government spending. The treasury had anticipated a 3.3% yearly growth until 2025/26.