The government jobs paying an average of R53,600 a month in South Africa

The latest earnings data from the Quarterly Employment Survey (QES) show that extra-budgetary institutions in South Africa earn the highest average salaries in government—and even among all formal jobs.

Extra-budgetary institutions (EBIs) are government agencies that do not operate through normal parliamentary processes but still deliver services to and on behalf of the national government.

Examples include services like the South African Revenue Service (SARS), the Commission for Conciliation, Mediation and Arbitration (CCMA), the Road Accident Fund (RFA), and the Unemployment Insurance Fund (UIF).

According to the QES pay data, these institutions fall under the government sector in the industry listings, and pulled in an average of R53,616 per month in the final quarter of the year.

The latest QES data represents pay trends between October and December 2024. However, it should be noted that this quarter also represents the months when bonuses are paid out, which lifts many averages.

Stats SA noted an 85% increase in bonus pay, quarter-on-quarter, reflecting this discrepancy.

However, when comparing year-on-year data, pay for EBIs in Q4 2024 was up 13.4% from Q4 2023, showing a significant jump in earnings.

Overall, EBI workers had the fifth-highest average salaries over the quarter, below only electricity, gas, steam and water supply workers, financial intermediaries, tech services and air transport workers.

However, EBI workers are not alone in their higher-than-average earnings. All government sectors saw average earnings higher than the formal, non-agricultural average of R28,231.

Government employees in South Africa draw in high salaries, having received increases for decades far higher than inflation.

While government wages were frozen during the tumultuous Covid years, unions and the state have started moving towards above-inflation increases in negotiations once again.

In the approved budget for 2025, the National Treasury had to add billions more to state expenses to cover the latest wage bill increases.

The government agreed to a 5.5% wage hike for workers this year. The agreement exceeds the 2024 Budget and MTBPS projections.

According to the National Treasury, this agreement will cost the fiscus an additional R7.3 billion in 2025/26, R7.8 billion in 2026/27 and R8.2 billion in 2027/28.

Everyone under pressure

According to economists, the compensation increases in the budget are skewed towards the public sector employees, while the burden on taxpayers generally increases.

This is courtesy of the budget passing with a narrow majority in the National Assembly, which passed the 2025 fiscal framework without changes last week.

Bundled with the budget is the hot topic of the month, the VAT increase, which will see the charge go up by 0.5 percentage points from 1 May.

This will add to the growing cost of living crisis in the country, affecting pricing all along the supply chain—from production to shelves and services.

Also included in the budget changes are no adjustments to tax brackets, which will eat away at salaries, leading to lower take-home pay and spending power.

Adding to the budget woes, South Africa also faces growing uncertainty in global markets, with the new Trump Tariffs kicking in this week, which may impact local agriculture and manufacturing.

While the direct impact on consumers remains to be seen, the tariff war launched by US president Donald Trump has caused significant upheaval in global markets, weakening the rand.

The weaker rand will impact import prices, leading to local inflation. The market crash will also put upward pressure on things like fuel prices, which will drive inflation further.

This, in turn, will keep the South African Reserve Bank (SARB) cautious, and the prospect of interest rate cuts in the foreseeable future will diminish.