{"id":192100,"date":"2017-08-14T13:20:43","date_gmt":"2017-08-14T11:20:43","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=192100"},"modified":"2017-08-14T13:24:28","modified_gmt":"2017-08-14T11:24:28","slug":"sa-governments-r137-billion-wage-bill-vs-emerging-economies","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/192100\/sa-governments-r137-billion-wage-bill-vs-emerging-economies\/","title":{"rendered":"SA government&#8217;s R137 billion wage bill vs emerging economies"},"content":{"rendered":"<p>South Africa&#8217;s public debt has risen rapidly to just under 50% of the country&#8217;s GDP in recent years &#8211; with more than 14% of this coming from government salaries alone.<\/p>\n<p>This is according to the OECD\u2019s\u00a0<strong><a href=\"http:\/\/www.oecd.org\/economy\/surveys\/economic-survey-south-africa.htm\">Economic Survey of South Africa 2017<\/a><\/strong>\u00a0which found that government&#8217;s\u00a0spending structure is skewed by a large\u00a0wage bill (35% of total GDP in 2016) compared to traditional OECD and emerging market economy averages, where the figure is an average of 14% of the total.<\/p>\n<p>The report notes that, together with\u00a0debt-servicing (10%), the high total is limiting the capacity of the South African government to meet the physical and social infrastructure investment needs necessary to unlock higher growth.<\/p>\n<h3 class=\"my-4\"><strong>SA government spending vs other emerging markets<\/strong><\/h3>\n<p><em>(click on images to enlarge)<\/em><\/p>\n<h3 class=\"my-4\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/OECD-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-192102\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/OECD-1.jpg\" alt=\"\" width=\"640\" height=\"253\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/OECD-1.jpg 707w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/OECD-1-300x119.jpg 300w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><\/h3>\n<hr \/>\n<h3 class=\"my-4\"><strong>Breakdown of spending<\/strong><\/h3>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/OECD-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-192104\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/OECD-2.jpg\" alt=\"\" width=\"640\" height=\"399\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/OECD-2.jpg 777w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/OECD-2-300x187.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/08\/OECD-2-768x479.jpg 768w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<hr \/>\n<h3 class=\"my-4\"><strong>Department which pays the highest<\/strong><\/h3>\n<p>According to a recent report by <strong><a href=\"https:\/\/businesstech.co.za\/news\/finance\/181179\/these-government-departments-pay-the-highest-average-salaries\/\" target=\"_blank\" rel=\"noopener\">Stats SA<\/a><\/strong>, South Africa\u2019s 47 national government departments spent R137 billion on compensation of employees during the 2015\/16 fiscal year.<\/p>\n<p>More than 70% of the R137 billion was taken up by just three departments: South African Police Service (42%), Defence (18%) and Correctional Services (10%). All three share one common element &#8211; their main function revolves around security.<\/p>\n<p>However, Stats SA also looked at the data based on how much each department pays, on average, per civil servant.<\/p>\n<p>Ranked on this metric, the top spot is occupied by the Office of the Chief Justice, which spent R1.3 billion in compensation during 2015\/16.<\/p>\n<p>With 1,613 employees under its wing, that translates to an annual compensation of R808,249 per person.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/06\/average-salaries-in-governement-departments.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-181181\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/06\/average-salaries-in-governement-departments.png\" alt=\"\" width=\"640\" height=\"900\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/06\/average-salaries-in-governement-departments.png 1563w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/06\/average-salaries-in-governement-departments-213x300.png 213w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/06\/average-salaries-in-governement-departments-768x1081.png 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/06\/average-salaries-in-governement-departments-728x1024.png 728w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/06\/average-salaries-in-governement-departments-640x900.png 640w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<hr \/>\n<h3 class=\"my-4\"><strong>Big Business<\/strong><\/h3>\n<p>Government&#8217;s workforce has become a major part of the economy &#8211; arguably more important than even the private sector when looking at the country&#8217;s employment trajectory, according to senior <strong><a href=\"https:\/\/theconversation.com\/south-africas-civil-servants-are-the-countrys-new-labour-elite-54269\" target=\"_blank\" rel=\"noopener\">researchers <\/a><\/strong>at the University of Cape Town.<\/p>\n<p>Public sector employment\u2019s share of total jobs has risen to 17.5% by the end of 2014, up from 14.5% at the beginning of 2008.<\/p>\n<p>The largest contributors to public sector job growth are occupations that fall under the category of unskilled workers, including sweepers; farmhands and labourers; helpers and cleaners; construction and maintenance labourers; and garbage collectors.<\/p>\n<p>The other major contributors are medium-skilled workers, like police and traffic officers; institution and home-based care workers; other protective services; prison guards; technikon teacher training; cooks and childcare workers.<\/p>\n<p>The public sector is also much better at addressing representation issues in the workplace, according to the researchers, with a higher proportion of both women and black African workers in the sector &#8211; groups that were discriminated against under apartheid.<\/p>\n<p>They are also almost singlehandedly responsible for the country&#8217;s union power and wage structure with union members making up almost 70% (1.4 million workers) of all public sector formal workers in 2014 &#8211; up from 55% in 1997 (834,000 workers).<\/p>\n<hr \/>\n<p><strong>Read:\u00a0<a href=\"https:\/\/businesstech.co.za\/news\/business\/190676\/sa-could-implement-4-hour-work-days-as-a-minimum-wage-compromise-report\/\" target=\"_blank\" rel=\"noopener\">SA could implement 4 hour work days as a minimum wage compromise: report<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Africa&#8217;s public debt has risen rapidly to just under 50% of the country&#8217;s GDP in recent years &#8211; with more than 14% of this coming from government salaries alone.<\/p>\n","protected":false},"author":10,"featured_media":149041,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-192100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/192100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=192100"}],"version-history":[{"count":16,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/192100\/revisions"}],"predecessor-version":[{"id":192136,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/192100\/revisions\/192136"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/149041"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=192100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=192100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=192100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}