South Africa's government employee wage bill has risen by 450% from a decade ago, with 55,000 public workers now considered millionaires. The National Treasury revealed this increase in the Medium-Term Budget Policy Statement (MTBPS), which shows that the government employee wage bill has increased from R408 billion in 2013/2014 to R724 billion in 2023/2024. This increase is attributed to government determinations and collective bargaining agreements, which are reviewed periodically to ensure fairness and competitiveness. Pay progression agreements, pension contributions benefits, and allowances such as overtime pay, housing allowance, and medical aid must increase with the relevant inflation rate, increasing the total wage bill yearly.
The number of employees with annual earnings above R1 million per year has increased from just above 10,000 in 2013/2014 to over 55,000 in 2023/2024. Another 180,000 employees earn between R600,000 and R1,000,000 per annum, while almost half of all 1.3 million government employees earn over R350,000 annually. South Africa's government employee wage bill is one of the highest among emerging markets, accounting for a significant share of the country's GDP. The average remuneration per government employee has grown substantially over the past decade, driven primarily by above-inflation increases for national and provincial employees.
The government's 2023 budget review highlighted the public wage bill as a primary risk to the fiscal outlook. However, most of South Africa's public sector unions agreed to a 7.5% wage increase this year after five months of strike action. By 2026, the general wage bill is expected to increase to R769 billion.
