Question NW94 to the Minister of Finance
25 February 2022 - NW94
Mabhena, Mr TB to ask the Minister of Finance
In light of the fact that the National Treasury refused to grant a salary increment of 4,4% to public servants citing a ballooning public sector wage bill in the 2019-20 financial year, what would have necessitated a departure from the stand point of the National Treasury for four public servants in the Driving Licence Card Account of the Department of Transport who allegedly received a combined salary increase of 88% in the past three years?
Reply:
The National Treasury sets the overall expenditure ceiling for compensation budgets, which can be managed either through headcount adjustments or remuneration by departments. Wage agreements - for individual salary changes - in government are negotiated at the Public Service Coordinated Bargaining Council (PSCBC) with the Department of Public Service and Administration (DPSA) representing both the national and provincial government departments. Once the wage agreements are reached, a circular is issued by the DPSA to the rest of government for implementation. Adherence to these circulars is a requirement for government departments. In this regard, the Department of Transport is no exception.
The Driving License Card Account (DLCA) is a trading account of the Department of Transport, with an acting chief executive currently a deployed employee of the Department of Transport. The reasons for approval of the salary increases of four of its employees may be answered by the DLCA and the Department of Transport. The National Treasury ensures that departments stay within their allocated budget ceiling, whether this involves changes in staff numbers or unit cost of employment.