EXPOSITION OF MONTHLY GUARANTEED AND POTENTIAL GAINS BASED ON 7% COST-OF-LIVING ADJUSTMENT AND REVISED HOUSING ALLOWANCE OF R630 PER MONTH FOR FULL-TIME EMPLOYEES ON SALARY LEVELS 1 TO 12 (PUBLIC SERVICE ACT EMPLOYEES)
Salary level / Guarenteed salary gain / Potential gain in Housing Allowance / Potential gain due to pay progression (1.5% per annum) / Overall guaranteed & potential gain / Potential revised monthly salary (before deductions)
Current monthly salary/total package / % guaranteed gain / Monthly gain (before deductions) / Current monthly Housing allowance / Monthly Housing allowance in terms of proposal / % potential gain / Monthly gain (before deductions) / % potential gain / Monthly gain (before deductions) / Overall monthly guaranteed and potential gain / % overall guaranteed and potential gain
1 / Min / R 4,018 / 7.0% / R 281 / R 500 / R 630 / 26% / R 130 / 1.5% / R 64 / R 476 / 10.5% / R 4,993
Max / R 4,264 / 7.0% / R 299 / R 500 / R 630 / 26% / R 130 / 1.5% / R 68 / R 497 / 10.4% / R 5,261
2 / Min / R 4,328 / 7.0% / R 303 / R 500 / R 630 / 26% / R 130 / 1.5% / R 69 / R 502 / 10.4% / R 5,330
Max / R 5,098 / 7.0% / R 357 / R 500 / R 630 / 26% / R 130 / 1.5% / R 82 / R 569 / 10.2% / R 6,167
3 / Min / R 5,175 / 7.0% / R 362 / R 500 / R 630 / 26% / R 130 / 1.5% / R 83 / R 575 / 10.1% / R 6,250
Max / R 6,095 / 7.0% / R 427 / R 500 / R 630 / 26% / R 130 / 1.5% / R 98 / R 655 / 9.9% / R 7,250
4 / Min / R 6,132 / 7.0% / R 429 / R 500 / R 630 / 26% / R 130 / 1.5% / R 98 / R 658 / 9.9% / R 7,290
Max / R 7,223 / 7.0% / R 506 / R 500 / R 630 / 26% / R 130 / 1.5% / R 116 / R 752 / 9.7% / R 8,475
5 / Min / R 7,332 / 7.0% / R 513 / R 500 / R 630 / 26% / R 130 / 1.5% / R 118 / R 761 / 9.7% / R 8,592
Max / R 8,636 / 7.0% / R 605 / R 500 / R 630 / 26% / R 130 / 1.5% / R 139 / R 873 / 9.6% / R 10,009
6 / Min / R 8,804 / 7.0% / R 616 / R 500 / R 630 / 26% / R 130 / 1.5% / R 141 / R 888 / 9.5% / R 10,191
Max / R 10,370 / 7.0% / R 726 / R 500 / R 630 / 26% / R 130 / 1.5% / R 166 / R 1,022 / 9.4% / R 11,893
7 / Min / R 10,869 / 7.0% / R 761 / R 500 / R 630 / 26% / R 130 / 1.5% / R 174 / R 1,065 / 9.4% / R 12,434
Max / R 12,803 / 7.0% / R 896 / R 500 / R 630 / 26% / R 130 / 1.5% / R 205 / R 1,232 / 9.3% / R 14,535
8 / Min / R 13,498 / 7.0% / R 945 / R 500 / R 630 / 26% / R 130 / 1.5% / R 217 / R 1,291 / 9.2% / R 15,289
Max / R 15,899 / 7.0% / R 1,113 / R 500 / R 630 / 26% / R 130 / 1.5% / R 255 / R 1,498 / 9.1% / R 17,897
9 / Min / R 16,045 / 7.0% / R 1,123 / R 500 / R 630 / 26% / R 130 / 1.5% / R 258 / R 1,511 / 9.1% / R 18,056
Max / R 19,383 / 7.0% / R 1,357 / R 500 / R 630 / 26% / R 130 / 1.5% / R 311 / R 1,798 / 9.0% / R 21,680
10 / Min / R 20,027 / 7.0% / R 1,402 / R 500 / R 630 / 26% / R 130 / 1.5% / R 321 / R 1,853 / 9.0% / R 22,380
11 / R 23,242 / 7.0% / R 1,627 / R 500 / R 630 / 26% / R 130 / 1.5% / R 373 / R 2,130 / 9.0% / R 25,872
Max / R 23,590 / 7.0% / R 1,651 / R 500 / R 630 / 26% / R 130 / 1.5% / R 379 / R 2,160 / 9.0% / R 26,250
CTE PACKAGES
11 / Min / R 31,538 / 7.0% / R 2,208 / ----- / ----- / ----- / 1.5% / R 506 / R 2,714 / 8.6% / R 34,252
Max / R 37,150 / 7.0% / R 2,601 / ----- / ----- / ----- / 1.5% / R 596 / R 3,197 / 8.6% / R 40,347
12 / Min / R 37,377 / 7.0% / R 2,616 / ----- / ----- / ----- / 1.5% / R 600 / R 3,216 / 8.6% / R 40,593
Max / R 44,028 / 7.0% / R 3,082 / ----- / ----- / ----- / 1.5% / R 707 / R 3,789 / 8.6% / R 47,816
NOTE:

SALARY LEVEL 1:

An employee on the minimum of salary level 1 who receives a housing allowance and qualifies for pay progression will receive a potential salary increase of 10.5% on his/her current earnings. 69% of employees on salary level 1 are currently receiving the housing allowance.

More than 90% of employees qualify for the annual pay progression. The potential monthly earnings before deductions for an employee on salary level 1 who receives the increased housing allowance and pay progression will be R4,993.

SALARY LEVEL 5:

An employee on the minimum of salary level 5 who receives a housing allowance and qualifies for pay progression will receive a potential salary increase of 9.7% on his/her current earnings. 75% of employees on salary level 5 are currently receiving the housing allowance.

The potential monthly earnings before deductions for an employee on salary level 5 who receives the increased housing allowance and pay progression will be R8,592.

SALARY LEVEL 8:

An employee on the minimum of salary level 8 who receives a housing allowance and qualifies for pay progression will receive a potential salary increase of 9.2% on his/her current earnings. 75% of employees on salary level 8 are currently receiving the housing allowance.

The potential monthly earnings before deductions for an employee on salary level 5 who receives the increased housing allowance and pay progression will be R15,289.

SALARY LEVEL 10:

An employee on the minimum of salary level 10 who receives a housing allowance and qualifies for pay progression will receive a potential salary increase of 9% on his/her current earnings.

74% of employees on salary level 10 are currently receiving the housing allowance. The potential monthly earnings before deductions for an employee on salary level 5 who receives the increased housing allowance and pay progression will be R22,380.

TEACHERS

A Teacher with a 4 year qualification on the minimum notch of the salary scale who receives a housing allowance and pay progression will receive a potential salary increase of 8.8% on his/her current earnings.

The potential monthly earnings before deductions for a teacher on the minimum notch who receives the increased housing allowance and pay progression will be R13,620.

ACCESS TO HOUSING ALLOWANCE

Salary level / No salary level / No Employees receiving housing allowance / % of employees receiving housing allowance
1 / 14,540 / 10,024 / 69%
2 / 68,299 / 54,499 / 80%
3 / 139,283 / 105,217 / 76%
4 / 60,616 / 49,461 / 82%
5 / 136,930 / 103,336 / 75%
6 / 132,445 / 91,448 / 69%
7 / 274,224 / 199,149 / 73%
8 / 132,503 / 98,859 / 75%
9 / 92,180 / 67,119 / 73%
10 / 46,804 / 34,723 / 74%
Total / 1,097,824 / 813,835 / 74%

Criteria for eligibility

·  Hold a permanent / fixed term contract position in the Public Service

·  Allowance paid on one home only

·  The property must be registered in the name of the employee whether alone or with another co-owner, spouse, friend, sibling or parent.

·  Hold a title deed, Permission to Occupy State or Traditional Land, Installment Sale Agreement

·  If the property is registered in the name of the other spouse and not the spouse (employee) who is the applicant, the employee may if married in community of property, submit a title deed which is in the name of the other spouse together with a marriage certificate.

·  A valid written rental agreement/ lease agreement in the name of the applicant alone or together with another co-tenant, e.g. a spouse, friend, sibling or parent.

·  If the rental agreement is in the name of the other spouse and not the (employee) who is the applicant, the employee may if married in community of property, submit the rental agreement which is in the name of the other spouse together with a marriage certificate.

ACCESS TO PAY PROGRESSION

More than 90% of employees qualify for pay progression on an annual basis. For the general public employee it means 1.5% notch increment every year based on satisfactory performance.

Teachers receive annual pay progression of 1% on a basis.

Nurses and Social Workers in terms of their respective Occupation Specific Dispensations (OSDs) receives a 3% pay progression every two year – over a two year period it is an average of 1.5% on annual basis.

Police officials in terms of their unique salary structure receives a 4% pay progression every third year – over a three year period it is an average of 1.3% on annual basis.

These increments are not sustainable, and should be understood in the context of the following, and, of course driven by the Government’s commitment to find solutions even in difficult circumstances:

Above Affordability and compels reprioritisation

Above inflation, and in fact, a seriously compromising

Further stretches the Wage Bill additional to the heavy impact occasioned by the settlement of the Occupation Specific Dispensation and last year’s salary settlement as a result of the implementation of Resolution 1 of 2007.

The public service salary dispensation is not out of competitiveness:

To illustrate this, find the following comparative analysis of public servants below the SMS level.

A comparative analysis was done between the salaries of the market and that of the public service employees on salary levels 1 to 12.

On basic salary the public service pays more than the 50th percentile of the market (meaning it pays more than 50% of the market) for posts graded on salary levels 1 to 10, and when comparing it to total remuneration packages, the public service in terms of basic salary plus benefits, pays more than the 75th percentile (meaning that the public service pays more than 75% of the market) for posts graded on salary levels 1 to 4, and more the 50th percentile for salary levels 5, 6 and 10. Salary levels 7 to 9 are remunerated at the 25th percentile of the market.

It is normal practice for organizations to remunerate at the 50th percentile and to opt to remunerate at the upper quartiles for scarce skilled occupations. From the analysis it is apparent that the public service, in terms of basic salary and total compensation, is paying very competitive salaries at the 50th percentile and upper quartile. The public service however is lagging behind on posts graded on salary levels 11 and 12, especially salary level 12 where the public service remunerates less than the 25th percentile.