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Update on the public sector wage negotiations
The state called for an urgent meeting yesterday to table the revised offer in the conciliation process. The state reported that the offer is final as it is the mandate from the cabinet (parliament).
The final offer of the state is as follows:
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The salary increment for 2015 is 7% with effect from 1 April 2015.
The salary increment for 2016 is CPI + 1% for 2016 with effect from 1 April 2016.
The salary increment for 2017 is CPI + 1% for 2017 with effect from 1 April 2017.
So, this is a multi-term (3 years).
Government Employees Housing Scheme (GEHS)
Housing Allowance is increased from R900 to R1200 (R300) for the people repaying the bond with the annual CPI increase from 2017. People who are not paying the bond will continue receiving the monthly R900 and the R300 will be put on savings as a future deposit when they are ready to buy a house.
Government Employees Medical Scheme (GEMS)
The increase will be 28.5% with effect from 1 January 2015. The future increase in contribution by the state will be based on Medical Price Index (MPI). This means that if the medical aid increases by 10%, the state contribution will also increase by 10% (proportional increase).
COSATU affiliated unions are convening an urgent meeting on Monday to prepare a response on this last offer of the state.
We will give a full feedback in all our demands after Monday’s meeting during the consultation of members and structures.
Issued on 09/05/2015
