Government Employees’ Remuneration

The purpose of this guide is to assist Industrial Psychologists in understanding the remuneration structures in place for government employees. 

SALARY SCALES AND NOTCHES

Government employees receive specific earnings that are prescribed by the Department of Public Service and Administration (DPSA). These earnings are referred to as salary scales and notches, and are basic salary earnings. The DPSA prescribes specific salary scales for employees covered by Occupation Specific Dispensations (OSDs) in the following occupational categories:

The earnings for individuals employed by the South African National Defence Force are prescribed by the Defence Force Service Commission.

Government employees are issued proof of their earnings each month in the form of a salary advice.

Sectoral Bargaining Councils

The following bargaining councils regulate the various sectors mentioned above:


SALARY INCREASES

The basic salaries or notches usually increase by a cost-of-living adjustment (COLA) in April each year. The COLAs as specified by the DPSA for the respective years to date are as follows:

  • July 2006: 3%
  • July 2007: 5%
  • July 2008: 5%
  • July 2009: 13% (level 1 to 3), 12% (level 4 to 6), 11% (level 7 to 8), 10.5% (level 9 to 10),10% (level 11 to 12)
  • July 2010: 5%
  • May 2011: 8%
  • May 2012: 7%
  • April 2013: 6%
  • April 2014: 4%
  • April 2015: 7% (adjusted to 6.4%)
  • April 2016: 6%
  • April 2017: 3%
  • April 2018: 7% (level 1 to 7), 6.5% (level 8 to 10), 6% (level 11 to 12)
  • April 2019: 2% (level 1 to 7), 5.7% (level 8 to 10), 5.2% (level 11 to 12)

Each job grading has a minimum and maximum salary with employee earnings usually starting on the minimum salary and then progressing through the grades and notches based on their performance. In addition to cost-of-living adjustments each year, the various occupational categories receive notch increases as follows:

  • Educators: 1% per year, until 2018, where it was a 1.3% increase and 1.5% per year from 2019
  • Correctional Services: 3% every 2 years
  • Police: 4% every three years until April 2019
  • All other sectors: 1.5% every year (as per the various dispensations)


BENEFITS

In addition to the basic salary remuneration, government employees typically receive the following benefits:

  • Annual bonus in the form of a 13th cheque
  • Housing allowance
  • Membership of medical aid (usually GEMS – Government Employees Medical Aid Scheme)
  • Membership to the Government Employees Pension Fund (GEPF)

The annual bonus is based on the basic salary and may be paid in the employee’s birthday month.

The housing allowance is received monthly and is based on published increases as follows:

  • Before July 2007: None
  • July 2007: R 500 per month
  • July 2010: R 800 per month
  • April 2012: R 900 per month
  • July 2015: R 1 200 per month
  • July 2017: R 1 276 per month
  • July 2018: R 1 336.22 per month
  • July 2019: R 1 398.35 per month
  • July 2020: R 1 456.94 per month, increasing with inflation in July each year

The medical aid subsidy varies between employees (and can depend on the number of dependents). As per Determination and Directive on Medical Assistance for Employees in the Public Service, for employees not on GEMS, the subsidy has been subject to a maximum of R 1 014 per month from 2006 to 2018, R 1 198 per month from January 2018, R 1 301 per month from January 2019 and R 1 406 per month from January 2020. The employer's medical aid contribution can be found on the employee’s salary advice.

The pension fund contributions made to the GEPF by the government depend on whether the employees’ occupational category is designated as uniformed or non-uniformed. For uniformed employees, the government contributes 16% of the basic salary to the GEPF, while a contribution of 13% of the basic salary is made for non-uniformed employees. 


TOTAL PACKAGE COMPENSATION FOR SPECIFIC OSDs

These inclusive remuneration packages consist of basic salary, employer contribution to GEPF and a flexible portion for members who belong to the GEPF. The basic salary is 70% of the inclusive package and is the basis of the State’s contribution to GEP. The remaining portion is flexible and may be structured in terms of a set of rules.

 

Salary Structure Payslips: Valuing the total earnings Loss of earnings and support claims are based on total earnings.
The Paterson employment grading model is frequently used by IOPs in medico-legal reports. The use, and misuse thereof, h
If attorneys do not want to appoint an accountant, actuaries must use the IP report provided. The best approach is to r
Actuary speak says that a “probability” is a chance from 1% to 100%. Legal speak says that a “probabil
Here is a list of phrases commonly found in IOP reports where the technical or legal interpretation differs from the ind
An employer certificate is a valuable form of collateral that can provide information missing from other sources. Tax ce
A person who is being sued for damages caused by their negligence may raise a defense of contributory negligence. Contri
This serves as a guide on the progression and promotion structures for government-employed nurses.RanksFirstly, any pers
This serves as a guide on the progression and promotion structures for government-employed educators.Relative Education
This serves as a guide on the progression and promotion structures for South African Police Services. Training and Indu
Progression and promotion structures for Public Service Act appointees not covered by Occupation Specific Dispensation.I
The purpose of this guide is to assist Industrial Psychologists in understanding the remuneration structures in place fo
There may be cases where the claimant is involved in 2 motor vehicle accidents and can claim loss of earnings for each.
South Africans with an income less than 3.8596 times the pension grant are entitled to an old-age pension from age 60 (c
A deductible benefit is a benefit that is deducted in the loss of earnings calculation, thus resulting in a lower claim
The total package includes fringe benefits, but might excludes non-guaranteed earnings like overtime, commission, and pe
To use earnings research appropriately the underlying statistics need to be understood. Data providers sort earning
Contingencies refer to events that may happen with some level of probability and could affect earnings or the need for s
These lump sum awards are capital and are thus tax-free in the hands of the recipient. When calculating the lump sum, no
Interest, earnings inflation, and net discount ratesThe interest rate is the rate that we assume claimants would earn on
Loss of support claims may arise from any situation where a person who was earning an income and has dependents is unlaw
The goal of the calculation is to determine a lump sum that will compensate the claimants for their loss. Loss of earni