Government allocates R11bn for early retirement of 30 000 public employees

Siphelele Dludla

The National Treasury has set aside R11 billion to pay for early retirement of at least 30 000 government employees over the next two fiscal years in a bid to manage the public sector wage bill. The early retirement incentive was first announced in the 2024 Medium-Term Budget Policy Statement (MTBPS) as a measure to reduce compensation costs while rejuvenating the public service. Finance Minister Enoch Godongwana told Parliament on Wednesday that the government was reactivating early retirement of public sector employees without penalties to help manage wage costs. Godongwana said the plan was to manage headcounts by incentivising employees over 55 years-old to retire and moderate compensation spending as new recruits join the public service at entry-level salary grades. He said the early retirement initiative was thus allocated R4.4bn…

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Star South Africa (Digital) - 1 Issue, 2025-03-13

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