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Senior officials increament cut

  1. Posted on Friday 13 November 2009 - 14:32
    Mernat
    Image of Mernat
    Mernat Mafirakurewa
    Johannesburg – South Africa president Jacob Zuma has cut the proposed salary increase for elected public officials from eight percent to seven percent.
    This follows concerns raised by Finance minister, Pravin Gordhan, on the implications of the salary hike on the fiscus.
    The higher raise was recommended by the Independent Commission for the Remuneration of Public Office Bearers.
    The pay hike, backdated to April 1 this year, is in sharp contrast to last year’s rise of 11 percent.
    President Zuma will now earn R2,25 million per year and Deputy President Kgalema Motlanthe and National Assembly speaker Max Sisulu each receiving R2,05million.
    "In light of the current economic situation, and the pressure on government finances, I have decided to adjust downwards the percentage recommended by the commission," Zuma said in a statement issued by the Presidency.
    MPs' salaries will increase from R714 618 a year to R764 641.
    Provincial legislature members' salaries will increase from R691 641 to R740 055 and those of councillors will rise from R322 899 to R345 501.
    Analysts welcomed Zuma’s move to trim the increases.
    SA is in its first recession since 1992, and the government has said its budget deficit will rise this year to 7,6 percent of Gross Domestic Product, a 40-year high.
    Dennis Dykes, chief economist at Nedbank told Business Day that the decision “sent a message” that public spending would be kept in check over the coming months. “We know the public finances are under huge pressure.
    “There was a very clear message in Gordhan’s medium-term budget speech, that ministries have to find ways of cutting back unnecessary expenditure. In that context an 8 percent wage rise would have seemed high.”
    End
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