Departing Ministers and MPs set for R81 million in ‘tips’

 ·9 Jun 2024

Cabinet ministers and Members of Parliament (MPs) who are not returning to parliament after set for R81 million in “tips.”

According to the Sunday Times, the 143 MPs and cabinet ministers who will not return to parliament will receive out-of-office gratuities.

The ANC members will lose the most MPs after its seats in parliament were slashed by 71 from 230 in 2019 to 159 following the latest round of voting.

With the ANC losing its majority in parliament, it plans to form a government of national unity with other parties.

The EFF and VF Plus are the next biggest droppers, losing five and four seats, respectively.

On top of election results shakeups, other MPs will not return after retiring.

Notable MPs not returning include Police Minister Bheki Cele, Labour Minister Thulas Nxesi, and International Relations Minister Naledi Pandor, who were all lower down on the ANC’s list of candidates for MPs.

The Sunday Times said that those who have been in parliament since 1994 will do the best financially, as their loss-of-office tip will be in addition to their pension benefits and other post-retirement perks, including medical aid and free flights.

The loss-of-office tip equates to four months’ pensionable salary for every term concluded by a minister, deputy minister or MP.

All members who served for more than one term in office, or more than five years, if their service started between two elections, will also receive an additional gratuity amount.

Pandor is set to earn at least R5.2 million in loss-of-office compensation when considering her R2.6 million annual salary.

Acting Speaker of the National Assembly Lechesa Tsenoli is also set to earn at least R4.4 million, double his current salary of R2.2 million per year.

These loss-of-office tips come from the national revenue fund run by the National Treasury.

However, there may be a lifeline for certain government officials who are losing their seats: the President is allowed to appoint at least two ministers or deputies from outside the National Assembly.

For instance, electricity minister Kgosientso Ramokgopa was not an MP when he was appointed to a newly established role last year.

Read: Ramaphosa approves salary hikes for ministers, MPs and premiers

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