South Africa: Tito Mboweni Squeezes Government Millionaires and Ordinary Middle-Class Civil Servants

South African Finance Minister Tito Mboweni prepares to deliver his Budget speech on February 26, 2020.
analysis

By looking at where the government wants to cut benefits and wages, Daily Maverick pinpoints who will be hit by the mooted state wage bill cuts.

Government is squeezing the 29,000 millionaire civil servants (defined as those who earn more than R1-million a year) in the upper levels of the civil service. Salaries have been frozen and benefits cut for government employees at levels 13 to 16 who are not part of the state union bargaining unit.

But to achieve the R160-billion in cuts over the medium term, Finance Minister Tito Mboweni wants to take a scythe to the future increases and benefits of the middle-class employees -- those employed at the state's levels 7 to 13.

These are the nurses, teachers and others who occupy the senior to middle ranks of the civil service and who earn R331,000 a year (and who comprise 24% of the total civil service), those who make R399,000 a year (who comprise 11% of the total) and R489,000 a year (8% of the total). These reductions amount to R37.8-billion in 2020/21, R54.9-billion in 2021/22 and R67.5-billion in 2022/23, according to the Budget tabled on Wednesday 26 February.

The cuts will impact on the civil...

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