EXPLAINER | What 4% pay increase for public office-bearers means for taxpayers

A proposed 4% increase in the remuneration of South Africa’s public office-bearers could add about R546.5m to the annual remuneration bill if implemented in full, but the figure is a recommendation, not yet a final determination.

Earlier this year, President Cyril Ramaphosa approved salary hikes for judges, MPs and ministers of 4.1% and 3.8% in different categories. His own salary hike of 3.8% from R3.4m to R3.6m was approved by MPs in March.

The Independent Commission for the Remuneration of Public Office-Bearers has recommended a 4% cost-of-living adjustment for the 2026/27 financial year, covering office-bearers across national, provincial and local government, the judiciary, traditional leadership and independent constitutional institutions.

The recommendation was published in Government Gazette No. 55446 on September 23.

The commission says it considered inflation, affordability, wage settlements, previous recommendations and consultations with government stakeholders before settling on 4%.

The commission’s figures show the total remuneration budget rising from R13.66bn in 2025/26 to R14.21bn in 2026/27.

Local government accounts for the largest portion of the increase. The remuneration budget for 9,331 local government office-bearers rises from R8.12bn to R8.45bn, an increase of about R324.8m. The magistracy follows, with its budget increasing by about R84m, from R2.10bn to R2.18bn, while traditional leaders account for an increase of about R52.5m.

The provincial executive and legislatures would see their allocation increase by about R28.7m, while MPs account for an increase of about R22.1m. The remuneration budget for judges rises by about R23.7m. National executives and deputy ministers would account for about R7.6m of the increase, while office-bearers at independent constitutional institutions account for about R3m.

The 4% recommendation has, however, exposed a disagreement over how public office-bearers should be remunerated.

Finance minister Enoch Godongwana recommended that the increase be capped at 3.4%, in line with the National Treasury’s projected 2026/27 Consumer Price Index.

The judiciary opposed the lower adjustment and argued for 4%, while a minority position within the judiciary proposed 4.5%. The lower courts’ remuneration committee went further, proposing 4.5% to 5%.

There is also an important comparison for taxpayers: public servants on salary levels 1 to 12 and senior management received a 4% adjustment for 2026/27.

The commission says inflation should be considered alongside affordability and fiscal sustainability, rather than automatically determining salary increases.

The recommendation is now part of the process leading to the final remuneration determination by the president.