Pretoria - Government and labour unions have agreed on a three-year settlement for the period 2012 to 2015, with the salary increase for 2012 finalised at 7%.
The 7% salary increase is effective from May 1. For 2013 to 2015, the increase will be based on Consumer Price Index (CPI) plus 1%.
The parties also agreed on a housing allowance of R900.
"The agreement indicates what is possible when parties join hands to solve challenges," said Public Service and Administration Minister Lindiwe Sisulu.
"This three-year agreement allows for the employer and labour to implement all elements of the agreement. The three years are also in line with government's planning cycle and ensure stability and proper planning for both parties."
As part of the agreement, government and labour unions committed themselves to a working relationship towards a service delivery accord that would ensure high productivity, efficiency and professionalism in the public service.
Government also committed to invest in public servants through skilling and empowerment to ensure higher productivity in the public service.
Minister Sisulu believed this was a fair settlement that covered all parties concerned.
The agreement also covers salary adjustments and pay progression. In an endeavour to develop and professionalise the public service, parties also agreed to amend the qualifying period for pay progression from 12 to 24 months for new employees in the public service.
With regards to recognition of long service, government and the labour unions agreed on increased annual leave entitlement and cash awards.
Government will recognise long service as follows:
* 10 years continuous service - increased annual leave entitlement from 26 working days to 30 working days;
* 20 years continuous service - a cash award of R7 500 plus a certificate;
* 30 years continuous service - a cash award of R15 000 plus a certificate;
* 40years continuous service - a cash award of R20 000 plus a certificate.
The agreement also includes the recognition of improved qualification. As from January 2013, government will recognise the attainment of an improved qualification which relates to an employee's scope of work.
This recognition includes a once-off cash bonus of 10% of the employee's annual salary notch, provided this does not exceed the minimum notch of salary level 8.
This once-off cash bonus excludes employees who received additional qualification through state-funded bursaries.
The agreement also covers family responsibility leave and pre-natal leave. As from January 2013, government employees will be entitled to five working days family responsibility leave per annual leave cycle.
With regard to pre-natal leave, eligible government employees will be entitled to eight working days per pregnancy.
"We recognise the commitment to an effective public service shown by labour unions throughout this negotiations process. This agreement lays a foundation for further processes of development of a service charter aimed at higher productivity in the public sector," Sisulu said.
