Parliamentary Question: Dpsa: Budgetary implications for government if salary increases are granted

2663

Mr S N Swart (ACDP) to ask the Minister for the Public Service and Administration:

What will be the budgetary implications for the Government if it should grant a (a) 7% salary increase and R630 monthly housing allowance or (b) 8,6% salary increase and R1 000 monthly housing allowance?

(a)The State’s offer of a 7% cost-of-living increase with effect from 1 July 2010 and the increase of the housing allowance to R630 per month will cost approximately R12 billion. The breakdown of the cost is as follows:
7% cost-of-living increase with effect from 1 July 2010 – R11.1 billion for period 1 July 2010 to 31 March 2011.

Housing allowance of R630 per month with effect from 1 July 2010 – R916 million for the period 1 July 2010 to 31 March 2011.
(b)The demand from labour for an 8.6% cost-of-living increase with effect from 1 April 2010 and increase of housing allowance to R1000 per month will cost approximately R22.9 billion.
8.6% cost-of-living increase with effect from 1 April 2010 – R18.2 billion for the period 1 April 2010 to 31 March 2011.



Housing allowance of R1000 per month with effect from 1 April 2010 – R4.7billion for the period 1 April 2010 to 31 March 2011.