South Africa’s public sector workers have been assured of a 5.5% wage increase for the 2025/26 financial year. This adjustment follows the multi-year wage agreement negotiated between government and trade unions under the Public Service Coordinating Bargaining Council (PSCBC).
The deal, which was signed in earlier years, guarantees that public servants’ salaries will rise steadily over three years, offering predictability for workers while helping government manage its wage bill. The 2025/26 increase marks the final year of this agreement.
For teachers, nurses, police officers, and other civil servants, the raise is a welcome boost at a time when living costs remain high.
What the Agreement Means
The PSCBC agreement secured annual increases for public servants covering the period from 2023/24 to 2025/26. The 5.5% increase due in 2025/26 will be applied across the board, ensuring all qualifying employees receive the adjustment.
This means that if a teacher currently earns R25,000 per month, their salary will rise to around R26,375, adding extra financial security for household expenses, savings, and debt repayments.
The government has highlighted that the agreement helps create stability in the public sector, reducing the risk of strikes or disputes over pay.
Why 5.5% Matters
While the increase may not seem large, it is significant when measured against South Africa’s current inflation rate of around 5%. The raise ensures that public servants’ salaries at least keep pace with inflation, preventing further erosion of their purchasing power.
For workers facing rising costs for food, transport, and healthcare, the adjustment will help cushion household budgets.
Which Employees Benefit?
The increase applies to a wide range of public sector employees, including:
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Teachers and education staff
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Nurses, doctors, and healthcare workers
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Police officers and correctional services staff
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Administrative and clerical staff across government departments
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Social workers and frontline service providers
Together, these groups make up one of the largest segments of South Africa’s workforce. Their salaries also support millions of dependents, meaning the impact of the raise extends well beyond just the employees themselves.
Impact on the Government Wage Bill
The public sector wage bill is one of the biggest expenses in the national budget, accounting for nearly a third of total government spending. The 5.5% adjustment will add billions of rand in costs, but because it was planned as part of the multi-year deal, the Treasury has already factored it into expenditure forecasts.
By sticking to the agreement, the government balances two priorities: honouring commitments to workers while maintaining fiscal discipline.
Role of Trade Unions
Trade unions played a key role in securing the wage agreement. For years, wage negotiations between unions and government have been tense, with disputes often leading to threats of strikes.
The current deal, however, reflects a compromise. Unions pushed for higher increases to match the rising cost of living, while government stressed the need to keep the wage bill sustainable. The result—a guaranteed annual increase—was accepted as a middle ground.
Unions have welcomed the 5.5% adjustment for 2025/26, while also signalling that they will push for even stronger raises in future negotiations once the multi-year deal ends.
Broader Economic Effects
The wage increase will have ripple effects across the economy. Public sector salaries support consumer spending in local communities, from supermarkets to transport services. For small businesses in towns and rural areas, spending by government employees is often a key driver of demand.
In addition, higher wages mean increased contributions to pensions, medical aids, and insurance schemes, strengthening financial security for workers and their families.
Challenges That Remain
Despite the increase, some challenges persist:
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Rising living costs continue to eat into wages, particularly for lower-level workers.
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Wage inequality within the public sector means higher-level employees benefit more in absolute terms.
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Budget pressures limit how much government can offer, creating ongoing tension with unions.
Still, the 5.5% rise provides stability and signals that government values the role of public servants in delivering essential services.
Preparing for Future Negotiations
As this is the final year of the multi-year agreement, new negotiations will begin in 2026. Both unions and government will need to balance the demand for higher pay with the realities of South Africa’s tight budget environment.
For workers, the key will be ensuring that future wage deals not only keep up with inflation but also improve real incomes. For government, the focus will be on ensuring that salary increases do not compromise other spending priorities like healthcare, infrastructure, and social grants.
FAQs
How much is the public service wage increase in 2025/26?
It is 5.5%, as part of the PSCBC multi-year wage agreement.
Which employees will benefit?
Teachers, nurses, police officers, social workers, and administrative staff across the public sector.
Why is the increase important?
It ensures salaries keep pace with inflation, protecting workers’ purchasing power.
How will the increase affect the budget?
It adds billions to the wage bill but was already included in Treasury’s planning.
What happens after 2025/26?
New negotiations will begin, with unions expected to push for higher increases.
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