Ramaphosa Approves 2.5% salary increase for ministers, MPs

Cape Town — President Cyril Ramaphosa has approved a salary increase for ministers, deputy ministers and members of parliament (MPs) for the 2024/2025 financial year.

Ramaphosa signed off on an 2.5% salary hike on 28 May, one day before the general elections. The president’s approval was officially gazetted on 5 June. The Independent Commission for the Remuneration of Public Office Bearers recommended the implemented increase after considering factors such as inflation, fiscal affordability and the wage bill, among others, The Citizen reported.

The presidency said the total package will include a basic salary component equal to 60% of the total, which will constitute a pensionable salary. The total remuneration will include R120 000 per annum, which will include a monthly allowance of R10 000.

Additionally, the package includes an employer’s pension benefit contribution equal to 22.5% of the pensionable salary, along with a flexible portion for the remaining amount of the total.

According to BusinessTech, South Africa’s cabinet ministers and parliamentarians will remain bona fide millionaires. Salary hikes for cabinet ministers are viewed as particularly egregious, as these millionaires also enjoy an entire spread of tax-free benefits and perks, all paid for by the South African taxpayer.

South Africa’s deputy president will now receive R3.16 million annually, cabinet ministers will receive R2.69 million and deputy ministers will receive R2.21 million. The new National Assembly speaker will also receive R3.16 million, while the deputy speaker will walk away with R2.2 million.

Opposition leader, John Steenhuisen, had a salary increase to R1.79 million, while other minority leaders such as Economic Freedom Fighters (EFF) leader Julius Malema, saw their salaries rise to R1.5 million.

Ordinary MPs and permanent delegates of the NCOP will each earn R1.27 million annually. The premier’s of all nine provinces will receive R2.53 million and the MECs and provincial members will receive R1.23 million.

The salary increases will take effect retroactively from 1 April 2024.

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Compiled by Matthew Petersen

Article written by Matthew Petersen

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