Pretoria- Cabinet has commended the Minister for Public Service and Administration Lindiwe Sisulu, her team and the unions for reaching a three-year wage settlement for public servants.
The multi-year agreement, which was reached on Tuesday, brought to an end the protracted negotiations which began in February. The unions had initially demanded a 10% wage increase.
But after sleepless nights and dedication by all parties involved, it was resolved that public servants will receive a 7% increase for 2012 and from 2013 to 2015, the increase will be based on the Consumer Price Index plus 1%.
The 7% increase will be backdated to May 1 and the housing allowance will increase to R900, an improvement of R100.
According to the settlement, government will also recognise long service employees who have been in the public service between 10 and 40 years and reward them.
Also offered is the recognition of improved qualifications, including a once-off cash bonus of 10% of employee's annual salary notch, provided this does not exceed the minimum notch of salary level 8.
Qualifying periods for pay progression have also been amended from 12 to 24 months for new employees in the public service.
Sisulu has described the settlement as a "give and take agreement" which will see, among other things, the development of a service charter that will measure performance, productivity and professionalism in the public service.
"This agreement communicates a message to all public servants, that we have started a new journey together -- a journey with a higher level of productivity, a journey in which public servants are preoccupied with only one thing - serving the public. The agreement is also important as it allows us to kick start a process to improve the conditions of service of our public servants," Sisulu told a media briefing on Wednesday.
