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)
Guarenteed salary gain
Salary
level
1
2
Mi
n
Ma
x
Mi
n
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)
Curren
t
Monthl
monthl
%
y gain
y
guaran
(before
salary/
teed
deduct
total
gain
ions)
packag
e
Curre
nt
mont
hly
Housi
ng
allow
ance
Monthl
y
Housin
g
allowa
nce in
terms
of
propos
al
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
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
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
%
poten
tial
gain
Monthl
y gain
(before
deduct
ions)
%
poten
tial
gain
Monthly
gain
(before
deducti
ons)
Overall
monthly
guarante
ed and
potential
gain
%
overall
guarant
eed and
potentia
l gain
3
4
5
6
7
8
9
Ma
x
Mi
n
Ma
x
Mi
n
Ma
x
Mi
n
Ma
x
Mi
n
Ma
x
Mi
n
Ma
x
Mi
n
Ma
x
Mi
n
Ma
x
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
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
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
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
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
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
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
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
7.0%
R 726
R 500
R 630
26%
R 130
1.5%
R 166
R 1,022
9.4%
R 11,893
7.0%
R 761
R 500
R 630
26%
R 130
1.5%
R 174
R 1,065
9.4%
R 12,434
7.0%
R 896
R 500
R 630
26%
R 130
1.5%
R 205
R 1,232
9.3%
R 14,535
7.0%
R 945
R 500
R 630
26%
R 130
1.5%
R 217
R 1,291
9.2%
R 15,289
7.0%
R 1,113
R 500
R 630
26%
R 130
1.5%
R 255
R 1,498
9.1%
R 17,897
7.0%
R 1,123
R 500
R 630
26%
R 130
1.5%
R 258
R 1,511
9.1%
R 18,056
7.0%
R 1,357
R 500
R 630
26%
R 130
1.5%
R 311
R 1,798
9.0%
R 21,680
R
10,370
R
10,869
R
12,803
R
13,498
R
15,899
R
16,045
R
19,383
10
Mi
n
11
Ma
x
R
20,027
R
23,242
R
23,590
7.0%
R 1,402
R 500
R 630
26%
R 130
1.5%
R 321
R 1,853
9.0%
R 22,380
7.0%
R 1,627
R 500
R 630
26%
R 130
1.5%
R 373
R 2,130
9.0%
R 25,872
7.0%
R 1,651
R 500
R 630
26%
R 130
1.5%
R 379
R 2,160
9.0%
R 26,250
7.0%
R 2,208
-----
-----
-----
1.5%
R 506
R 2,714
8.6%
R 34,252
7.0%
R 2,601
-----
-----
-----
1.5%
R 596
R 3,197
8.6%
R 40,347
7.0%
R 2,616
-----
-----
-----
1.5%
R 600
R 3,216
8.6%
R 40,593
7.0%
R 3,082
-----
-----
-----
1.5%
R 707
R 3,789
8.6%
R 47,816
CTE PACKAGES
11
12
Mi
n
Ma
x
Mi
n
Ma
x
NOTE:
R
31,538
R
37,150
R
37,377
R
44,028
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
1
2
3
4
5
6
7
8
9
10
Total
No salary
level
14,540
68,299
139,283
60,616
136,930
132,445
274,224
132,503
92,180
46,804
1,097,824
No Employees
receiving
housing
allowance
10,024
54,499
105,217
49,461
103,336
91,448
199,149
98,859
67,119
34,723
813,835
% of employees
receiving
housing
allowance
69%
80%
76%
82%
75%
69%
73%
75%
73%
74%
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 50 th 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 50 th 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.