Goodbye to ‘bonuses’ for government workers

The Independent Commission for the Remuneration of Public Office Bearers (POBs) says that bonus ‘gratuities’ paid to government workers at the end of their terms are unsustainable, and the practice should be phased out.

The Presidency gazetted the 2024 Consolidated Remuneration Review Report, through which the commission conducted a thorough review of government remuneration practices, including gratuity payments.

Gratuities are a form of bonus given to specified members of local, provincial or national government, paid out at the end of term—typically before a national or municipal election.

The most recent example of such a payment would be the R10 million ‘gratuity’ that was denied to former Public Protector Busisiwe Mkhwebane, which she would have received had she completed her term instead of being impeached and removed from the position.

Similar gratuities are paid out to various qualifying workers in the public sector, including members of the executive and local government.

According to the commission, the practice needs to end.

“Across the various public sectors there has been a past practice of paying once-off gratuities of various forms to those public office bearers whose term of office had come to an end.

“The commission had on numerous occasions expressed its view that the payment of a gratuity on leaving office was inappropriate and placed an unnecessary strain on the fiscus,” it said.

The commission said that a view has already been created among some of the current serving public office bearers that a gratuity is due to them, but this is not the case.

It said that if gratuities were a given, there would be no need to request a recommendation for them at the end of a term of office. However, in practice, a recommendation must be made—meaning that gratuities are not guaranteed.

Despite this, the commission acknowledged that there is now a standing impression that gratuities are due.

“It is abundantly clear that a precedent had been set for the payment of the ‘once-off gratuity / ex-gratia’ benefits to members of Parliament, Legislature and the National and Provincial Houses of Traditional Leaders, as well as to Local Government Councillors.

“As stated earlier, the commission does not support the continued payment of gratuities as it is not sustainable,” it said.

Given that a benefit expectation has already been created, the commission recommends that any gratuities due should be paid to members of the Executive and Legislative sectors who qualify for all terms of office at the end of their respective terms in 2029 – but after this, no further benefit should accrue.

“The existing members will receive gratuity at the end of 2029 before closing down the practice,” it said.

Gratuities for members of the Local Government sector who qualify for all terms of office should similarly be paid at the end of their respective terms in 2026 – and no further.

“After a thorough consideration, the Commission found that this practice is not sustainable and recommends phasing it out in 2026 for Local Government and 2029 for members of the Executive and Legislative sectors, respectively,” it said.

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