The state’s mounting wage bill has contributed in large measure to SA’s structural fiscal deficit OVER the past decade, public sector labour unit costs have increased by more than 80% in real terms, growing more than six percentage points above inflation on average each year. The state’s mounting wage bill has contributed in large measure to SA’s structural fiscal deficit.During 2015, national treasury will launch a detailed assessment of compensation budgets to tighten control of the public sector wage bill, building on research undertaken by the department of public service & administration. The department’s 2011 Personnel Expenditure Review found that:• Between 2006/2007 and 2010/2011, national and provincial personnel expenditure grew by over 15%/year despite little evidence of any improvement in service delivery;• There were more than 350 salary scales and over 500 different allowances, leading to administrative complexity and providing opportunities for irregular remunerative ...
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