Senior Public Sector Salary Increases Fuel Rising Wealth Inequality

November 11, 2026 dailymirror https://iframe.iono.fm/e/1738506?layout=modern” width=”100%” height=”170″ frameborder=”0″ data-mce-fragment=”1

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JIMMY MOYAHA: The Presidency has approved a 3.5% salary increase for government officials. This decision will impact members of the National Executive, the National Assembly, the National Council of Provinces, provincial premiers, members of provincial legislatures, and provincial executive councils.

A distinct 4% raise has also been sanctioned for judicial members.

This adjustment is estimated to add around R530 million to the wage bill, which is already at R400 billion for the public sector.

Read: Ramaphosa signs off on a 3.5% pay rise for politicians

We’ll delve into the implications of this wage increase with Dr. Mzwanele Ntshwanti, a senior researcher at the Institute for Economic Justice. He is on the line to provide his insights.

Mzwanele, it’s always a pleasure having you on the show. Thank you for your presence.

What are your opinions regarding this wage increase? While salary hikes are not unusual, South Africa has an exceptionally high public sector wage bill. One might question whether this increase is genuinely sustainable.

MZWANELE NTSHWANTI: Thank you, Jimmy, and good evening to you and your listeners.

At first glance, there’s considerable unease about the direction our government is taking.

Firstly, as you mentioned, we are already dealing with a substantial wage bill.

Secondly, our nation is facing significant issues in basic and public services.

I’m referencing areas like health, education, and social protection, where certain departments—like the National Treasury—have had to take legal action to evade paying certain social grants.

Lastly, the level of inequality within our country is glaring.

We’re discussing individuals from the upper 1% of the population—our public representatives—while much of the population earns considerably less than the median wage, with many facing unemployment.

This raises the question of whether our public servants, including the president, truly comprehend this disparity, especially since inflation seems to be the only factor influencing this decision.

These individuals are already in the top 1%, meaning they have sufficient resources to manage these costs.

But what about those depending on social grants, who have seen only a meager R20 increase?

What about those receiving the SRD [Social Relief of Distress] grant, stuck at R370 since 2020? That is quite troubling.

Another area of concern is the accountability of our public representatives. Given the current economic climate, what justifies the benefits they are receiving?

They are already at the top of the income spectrum, yet they have not made noteworthy contributions to improving the economy. What are they being rewarded for?

The economy has grown by less than 1% over the past five years, which poses severe challenges in delivering public services.

What reason exists to reward our public servants in this context?

I believe this increase is unwarranted and does not sufficiently address the myriad crises confronting our nation.

Perhaps the president and National Treasury should have considered reprioritizing this expenditure. This is an instance where such deliberation is necessary.

JIMMY MOYAHA: Mzwanele, let’s explore some of the points you’ve brought up.

You mentioned that inflation appears to be the major factor, and suggestions have arisen that the Remuneration Commission should have solicited public input and opinions.

In your view, how would this have affected our pursuit for a fair figure or guided us in navigating this wage increase discussion?

MZWANELE NTSHWANTI: Certainly, this ties into the accountability issue I’ve previously mentioned. In our professions, Jimmy, we assess performance. An increase isn’t merely based on the rising cost of living or inflation.

While it’s common practice to raise salaries in response to inflation, we should also evaluate performance and results.

Putting this proposal out to the public would allow us to scrutinize our public representatives more closely.

Moreover, we must consider that these individuals already have numerous benefits.

We should evaluate the impacts on pensions, housing allowances, car allowances, medical aid, etc.—benefits that a vast majority of the populace do not have access to. Grasping these dynamics would illuminate the roots of inequality in our society.

Further measures that perpetuate inequality must be reconsidered:

These individuals are transported by the state, so the 3.5% increment in their salaries is but a small part of the whole.

Moreover, as I stated earlier, these public servants typically have a low marginal propensity to consume. They possess enough resources to handle economic shocks, such as recent hikes in petrol or energy prices—costs they can often evade.

A considerable portion of their income is saved rather than spent.

In contrast, households that rely on social grants would significantly benefit from a more substantial increase in their assistance. This would enable them to re-enter the workforce, start small businesses, continue their education, or apply for jobs online.

Enhanced support allows them to provide for their families. This also means that low-income individuals would be more likely to stimulate economic activity.

Enhancing their incomes could lead to a rise in overall consumption within the economy, promoting growth—an outcome that sharply contrasts with merely increasing salaries for high earners, which results in poor distributional effects overall.

This is why I believe public input on this issue could stimulate inquiries such as: What about teachers whose salaries have stagnated? What about the rising unemployment? What about the infrastructure of schools and hospitals?

Could this R530 million have been more effectively utilized to tackle these challenges and help reduce societal inequality?

JIMMY MOYAHA: Perhaps the question is not solely whether the South African fiscus can absorb an additional R500 million in public sector salaries, but rather how those funds could have been more effectively utilized when viewed from that angle.

We will wrap up this segment on that note.

Dr. Mzwanele Ntshwanti, senior researcher at the Institute for Economic Justice, has joined us today to discuss the approved 3.5% wage increase and its implications of adding R530 million to our public sector wage bill.

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