The Independent Commission for the Remuneration of Public Office Bearers on Friday recommended a 7% salary increase for state servants. The recommendation will now go before Parliament and the president for final approval, expected within the next few weeks.
In addition, the commission made recommendations concerning the remuneration due to former president Kgalema Motlanthe. Since last year Motlanthe, who now serves as deputy president, has been earning the salary of a deputy president. However, in terms of a resolution passed in September 2008, all retired presidents are entitled to a pension package equal to the annual salary of president.
Judge Willie Seriti, who chairs the commission, said when the commission was asked for an opinion on this matter, Motlanthe was already deputy president and was earning the salary of that position. The commission has now resolved that Motlanthe is entitled to the pension and other benefits payable to a former president on retirement.
Seriti said Motlanthe should have received a pension of a former president on the date on which the current president became president. “That pension became due to him on that day,” he said.
“He [Motlanthe] should be getting slightly more per month than what he is getting now. His [new] monthly payment will be slightly higher than what he is currently getting,” Seriti explained.
How the salaries stack up
Motlanthe has been earning a deputy president’s salary package of R2-million annually. He will now receive an annual pension equal to the salary paid to the sitting president. If the 7% increase is accepted by Parliament and the president, he will receive R2,41-million next year. The president will earn the same amount. Ministers will earn R1,84-million and deputy ministers will earn R1,51-million.
Other public office bearers who will receive the 7% increase include members of the national and provincial legislature as well members of local government, the judiciary and traditional leadership structures.
Members of Parliament will earn R818 166 and members of the provincial legislature will earn slightly less at R781 860. Premiers will receive R1,73-million and executive mayors R961 898.
The chief justice will earn R2,17-million and traditional kings will earn R899 983.
Market-related increases
Seriti pointed out that the Department of Public Service and Administration and many private sector companies have in the past favoured an increase of CPI plus 1%. On average, CPI this year has been at 6%.
Last year, the commission recommended an 8% increase for public office bearers but this was readjusted by the president to 7% for 2009/2010.
Seriti said that if a reduced percentage point was adopted again, public office bearers would fall behind the market for two consecutive years. “It will compel the commission to recommend a third major review of public office bearer remuneration levels. It should certainly not be the intention of the commission to play catch-up every three to four years,” he said.
In 2007 and 2008, the commission called for major reviews to bring remuneration levels on a par with national and international markets.
Commissioner Mark Bussin explained that when deciding on public office bearer salaries, the commission looked at the ratio between the president’s salary and the gross domestic product of similar countries. “We try to peg ourselves somewhere in the median,” he explained.
Bussin added that salaries for public office bearers were decided by looking at comparable jobs in other sectors which have similar levels of responsibility, complexity and decision-taking power.
Unresolved matters
The commission resolved not to make recommendations on the remuneration due to headmen and headwomen. According to the Traditional Leadership Governance Framework Act, headmen and headwomen are the assistants to senior traditional leaders (amakhosi).
Commissioner Pearl Sithole said headmen and headwomen undertook important work within traditional councils, and were currently not remunerated.
“We are doing a lot of work around what is the appropriate remuneration structure for them. We are still waiting for information from other stakeholders in terms of how many there are and the procedures by which they are replaced, before we can finalise the appropriate remuneration for them,” she said.