Issued by: Office of the President
1 On the 7th October 1998 the newly appointed Independent Commission for the Remuneration of Public Office-Bearers held its first meeting pursuant to its appointment. At this meeting the Commission reviewed its mandate and inter alia decided to give priority to the remuneration and a pension dispensation for a President. The Commission's recommendations in this regard are published in the Government Gazette of today's date.
2 At the beginning of the new dispensation in 1994 a President's remuneration, in accordance with the recommendations of the Melamet Committee, was determined at R690 000 p.a. This included an amount calculated at the rate of 20% of salary as a motor vehicle allowance. The President took the lead in a "belt-tightening exercise" by the Government during 1994/95. The belt-tightening exercise entailed that public office-bearers at national and provincial levels of Government accepted a reduction in their salaries. In respect of the President the reduction amounted to 20% of his salary with effect from December 1994. The total remuneration of the President accordingly receivable is currently R552 000 per annum.
3 In its Annual Review of the Remuneration of Public Office Bearers for 1998 (Second Report), the Commission recommended that an effective increase of 20,5% in remuneration of the President be approved by Parliament. In total this amounts to R665 590 per annum (salary R532 184 and a motor vehicle allowance of R133 406). Whilst this recommendation brought greater rationality to the relationship between the salaries of the President and the Deputy President, it did not account for any inflationary increase in his real income since 1994.
4. The Commission's recommendations as set out in paragraph 3 above made at the beginning of 1998 have not as yet been considered by Parliament. The Commission took the opportunity to reconsider this recommendation. Taking into account the specific circumstances operative at present an increase in the region of approximately 60% of present salary would have been justified. The Commission unanimously (one member is presently overseas and did not participate in the decision) had now hesitation in recommending to the National Assembly that the remuneration of a President should be increased by an additional five per cent to 25,5% of present remuneration (salary plus allowances). This would amount to R698 586 per annum. This still constitutes a significant reduction in real income since the end of 1994. It must be borne in mind in this context that the Melamet Committee's recommendation was that an appropriate remuneration for a President was R690 000 per annum in 1994.
5 The Commission has accordingly recommended to the National Assembly to consider the following proposals:
(a) An effective increase of 25,5% in the present remuneration (salary and allowances) of the President to an amount of R698 586 per annum be approved.
(b) Upon a President's retirement from office, with effect from the day following the day that he/she vacated office, a taxable pension benefit be granted to him/her equal to 75% of the annual remuneration payable to him/her the day prior to his/her retirement.
(c) Upon the death of a President, whilst in or out of office, with effect from the day following the day of his/her death, a taxable pension benefit be granted to his/her widow/widower equal to 50% of the pension benefit which a President would have received.
6 The Commission consists of the following members:
Judge J H Steyn; Mr D C Brink; Mr T N Chapman; Dr C V Jones; Ms D Mokhobo; Mr A S Nkonyeni; Ms C September.
A copy of the relevant report can be obtained from the Secretary of the Commission.
Issued by Mr Justice J H Steyn Chairperson 4 November 1998
Enquiries: I Olivier Secretary: Commission for te Remuneration of Public Office-Bearers Private Bag X1000 Cape Town 8000 Tel: (021) 419 7783 Fax: (021) 419 7737 E-mail: comrumrep@ct.ia.net