Issued by: Office of the Presidency
18 October 2000
1.1 In the light of media queries with regard to the increase in salaries granted to public office-bearers at the national level of government, The Presidency would like to clarify the following issues.
1.2 The perception that the President has approved a 15.5% increase in salary for all political office-bearers is incorrect.
1.3 In actual fact the correct total average increment approved by the President for all national office-bearers including adjustments for housing in certain applicable categories amounts to 7.5% while the total average increment excluding the housing adjustment amounts to 7%.
1.4 The average increment for Ministers/Presiding Officers and their deputies including the adjustment for housing is 13%, while the total average increment for Ministers/Presiding Officers and their deputies excluding the adjustment for housing amounts to 7.7%.
2. Decision-making on remuneration of public office-bearers.
2.1 Decisions around remuneration of public office-bearers are based on recommendations of the Independent Commission on the Remuneration of Public Office-bearers, which is a constitutional and independent body.
2.2 The above Commission's advice on the remuneration of public office-bearers at all levels of Government was published in the Government Gazette of 9 June 2000. These recommendations were approved by the President on 26th September and subsequently published in the Government Gazette on 28th September as is prescribed by the Remuneration of Public Office-Bearers Act, 1998. Copies of the Government Gazette are available at the offices of the Government Printers.
2.3 In its report the Commission re-affirmed the values and the principles upon which it advised remuneration for public office-bearers in its first report published in 1996. The Commission emphasised the importance of transparent remuneration processes and structures. It has in its recommendations sought to ensure that all such office-bearers receive fair and equitable remuneration in accordance with their respective responsibilities.
2.3.1 The Commission received and gave due consideration to all the submissions it received. It also evaluated evidential material concerning matters such as the levels of remuneration in the public and private sectors, the current rate of inflation, probable future trends in this respect as well as other relevant information.
2.3.2 The Commission was also mindful of the erosion in remuneration for public office-bearers which has occurred since 1994.
3.3.3 Based on the above considerations and material the commission recommended as follows:
3. Housing:
3.1 The 1999 remuneration package of all national political office bearers includes a provision for additional housing expenditure occasioned by the two-capital system and is designed to assist in the provision that has to be made for the maintenance of two houses (and in some cases more three). In respect of Ministers & Deputy Ministers this amounted to approximately R22 000 and R17 878 per annum respectively, whilst they are currently paying approximately R48 000 or more per annum for the State housing they are occupying away from their home base.
3.2 To correct this distortion, the Commission recommended that the housing component of Ministers/Presiding Officers and their Deputies be increased by R26 000 and R21 132 per annum respectively.
3.3 This constitutes a 5% increase in their total package in lieu of the additional housing expenditure. In respect of incumbents in gradings below that of a Deputy Minister, most of whom live in state-owned housing at the seat of the legislature at subsidised rentals, no adjustments were in the opinion of the Commission justified.
4. Notches
4.1 In the light of the previous salary structure not taking seniority into account, the Commission recommended the introduction of a Notch Structure in order to acknowledge merit and experience as factors in determining remuneration of public office-bearers. 2.. The introduction of the notch system, in the case of the Notch Two category of Members of Parliament (members re-elected to the same institutions who have more than 2 years experience and serving in the same graded position in the same institution) resulted in an increment higher than average for other categories. It was felt that this was acceptable given that it was a once off adjustment resultant from the introduction of the new system.
5. Members of Parliament
5.1 A First Notch would be applicable to all newly elected members to an institution. The remuneration of newly elected members below the grade of a Deputy Minister remain at the same level as that approved by the President for 1999. For the approximately 100 (28%) out of a total of 354 Members of Parliament who fall in this category of office-bearers, no increase in salary is granted.
5.2 A Second Notch would apply to members who are re-elected to the same institution but who have less than two years experience in the same graded position in the same institution. In this category of office-bearers, approximately 25 (7%) MPs, the total salary increase amounts to between 5% and approximately 7%.
5.3 A Third Notch would apply to members re-elected to the same institutions who have more than 2 years experience and serving in the same graded position in the same institution. In this category of office-bearers, approximately 229 (66%) of MPs, the total increment amounts to 10%.
5.4 The average increment for Members of Parliament is thus 6.9%.
6. Ministers/Presiding Officers and their deputies
6.1 Similarly, Ministers, Presiding Officers and their Deputies who fall in notch one, i.e. those who are newly elected, do not receive an increase in salary. They do however receive an increase in respect of housing amounting to 5% of their total salary. One out of the 44 Ministers/Presiding Officers or their Deputies falls in this category.
6.2 Ministers, Presiding Officers and their Deputies who fall in notch two (those who have been re-elected but who have served less than two years in the same graded position in the same institution) receive an increase in salary amounting to 5% with an additional upward adjustment in respect to costs of housing. In total the increment amounts to approximately 10.2% for 19 (i.e. 43%) Ministers/Presiding Officers or their Deputies.
6.3 For Ministers/Presiding Officers and their Deputies who fall into Notch 3, i.e. those who are re-elected and who have served more than two years in the same graded position in the same institution, receive an increase of 10% in salary and an additional upward adjustment in respect of housing. The total increment is thus in the region of 15.5% for 24 (54.5%) Ministers/Presiding Officers or their Deputies.
6.4 The average increment for Ministers/Presiding Officers and their deputies including the adjustment for housing is thus 13%, while the total average increment for Ministers/Presiding Officers and their deputies excluding the adjustment for housing amounts to 7.7%.
7. Total Average Increments for all public office-bearers
7.1 The total average increment for all national office-bearers including adjustments for housing in applicable categories amounts to 7.5% while the total average increment excluding the housing adjustment amounts to 7%.
For more information contact Nazeem Mahatey on 082 376 3820.
Enquiries
Nazeem Mahatey
The Presidency
Communications Unit
Private Bag X1000
Pretoria
0001
Cell: + 27 (0) 82 376 3820