Cape Town – The South African government plans to allocate R11 billion over the next two years to offer early retirement for about 30,000 public sector employees, aiming to curb rising wage costs and bring in younger talent.
This early retirement program, outlined in the 2024 Medium-Term Budget Policy Statement, is part of efforts to create a more capable and efficient government, which Finance Minister Enoch Godongwana said includes building a digital infrastructure to improve public services.
“Accounting officers and executive authorities will have the authority to approve early retirement applications that do not reduce the pool of highly skilled people in government agencies,” the minister said on Wednesday.
While this initiative is part of a strategy to contain employment costs and foster economic growth, it faces opposition from public sector unions, especially in health and education, due to concerns over potential job losses amid ongoing wage negotiations.
The government’s wage bill, though reduced as a share of total spending, remains high, comprising 13.6% of GDP in 2022, one of the highest globally.
Further retirement measures without penalties are proposed for 2025/26 and 2026/27 to manage public service wage costs.
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Compiled by Betha Madhomu
