South Africa’s Public Sector Pay Rise 2025: Who Qualifies, How It Will Be Paid, and What to Check on Your Payslip

Government and trade unions concluded a two-year wage agreement aimed at protecting real incomes in a period of sustained cost-of-living pressure. The agreement delivers a 4.7 percent increase effective 1 October 2025, following the 7.5 percent adjustment implemented in November 2024. The stated intent is to provide predictable, staged increases that keep core public servants’ pay trajectories broadly aligned with inflation while the state manages fiscal risks.

The 2025 component is anchored in PCSBC Resolution 1 of 2025, with detailed implementation instructions issued through Circular No. 7 of 2025. Departments are expected to apply the increase automatically where the posts and incumbents meet the coverage rules and to communicate exceptions clearly to affected employees.

South Africa’s Public Sector Pay Rise 2025 Snapshot Summary

Who gets the increase and who does not

Covered

• Salary Levels 1–12 in the core public service.
• Employees on special arrangements explicitly listed in the implementation circular (for example, certain occupation-specific dispensations or atypical deployments).

Not covered by the 4.7 percent across-the-board

• Certain senior managers who fall outside the agreement’s scope.
• Selected professional categories (for example, some teacher and police ranks) that are managed through sector-specific frameworks or separate processes.

The implementation circular is the decisive reference for coverage. If your role is unusual, seconded, or governed by a sectoral dispensation, your departmental HR will confirm how your post is treated and whether any alternative or deferred arrangement applies.

How the state is paying for it

The wage bill allocation for 2025–26 is R754.2 billion, an increase of R33.1 billion over the prior year, with a projection of R822.5 billion in 2026. Treasury’s stated objective is to preserve service delivery capacity and retain skills while meeting affordability constraints. Departments have been instructed to budget for the full-year effect of the increase, factor in headcount realities, and coordinate with provincial treasuries where relevant.

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In practice, departments will align existing compensation budgets, reprioritise non-critical items where needed, and use natural attrition controls to remain within ceilings. The aggregate figures signal that the wage increase has been priced into baseline appropriations rather than relying on ad-hoc adjustments later in the year.

When you will see the increase

The effective date is 1 October 2025. The increase should flow into the October payroll for employees who are covered and whose records are up to date. Where payroll cut-off constraints or post-level clarifications cause timing issues, departments may process a catch-up adjustment in November payrolls. If your payslip does not reflect the increase by end-October, contact HR and cite Circular No. 7 of 2025 for your post and salary level.

What this means for your payslip: a quick checklist

Use the October payslip to confirm:

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1. Basic salary line increased by 4.7 percent relative to September for covered posts.
2. Allowances and benefits whose values are linked to basic salary may shift accordingly if your departmental rules index them; check the circular and departmental HR guidance.
3. Third-party deductions (medical aid, pension fund, union dues, garnishees) still align with your updated salary and do not trigger unintended shortfalls.
4. Back-pay or once-off corrections: if your department missed the October run for administrative reasons, the November payslip should include arrears covering 1–31 October.

Illustrative example

• September basic salary: R20,000
• October 4.7 percent increase: R20,000 × 1.047 = R20,940
• If your pension contribution is a fixed percentage of pensionable salary, expect small changes in both employee and employer contributions proportional to the new base.

Department obligations: communication and exceptions

Departments must:

• Apply the increase automatically for eligible Levels 1–12 and for any included special arrangements.
• Issue written notices where posts are excluded or where a sectoral dispensation supersedes the general increase.
• Provide a query escalation path so that employees can resolve discrepancies rapidly.
• Confirm how acting allowances, overtime rates, and shift premia are treated, as these often reference basic salary or notches.

Union reaction and the road ahead

Organised labour welcomed the movement but argued that 4.7 percent is below what is needed in the face of rising food, transport, and housing costs. Unions representing more than 300,000 public servants have signalled that they will continue to engage for supplementary adjustments or targeted relief if inflation remains elevated. The wage forums will monitor macroeconomic conditions and departmental compliance, and the parties may revisit specific elements in line with the agreement’s review clauses.

Practical steps for employees

1. Read the circular: Locate Circular No. 7 of 2025 on your department’s intranet or request it from HR.
2. Check your notch and level: Confirm your current salary level and whether any occupation-specific dispensation applies.
3. Compare payslips: Keep your September and October payslips side by side; verify the 4.7 percent change and any knock-on effects to deductions.
4. Raise discrepancies early: If your adjustment is missing or incorrect, log a payroll ticket with HR; supply your PERSAL number, post level, and the circular reference.
5. Avoid misinformation: Rely on official departmental notices, the bargaining council’s resolution text, and the DPSA website rather than social media summaries.

Official references and where to find updates

• Department of Public Service and Administration (DPSA): www.dpsa.gov.za
• Public Service Co-ordinating Bargaining Council (PSCBC/PCSBC): www.pscbc.org.za
• Your department’s HR portal or intranet for the full text of Circular No. 7 of 2025, FAQs, and payroll timetables.

Frequently asked questions

1) Does every public servant get 4.7 percent from October 2025?

No. The 4.7 percent applies primarily to Levels 1–12 and specific categories listed in the implementation circular. Some senior management and profession-specific posts are handled outside this blanket increase. Check your departmental circular.

2) How does this relate to the 7.5 percent in 2024?

The 7.5 percent implemented in November 2024 was the first phase under the two-year arrangement. The 4.7 percent in October 2025 is the second phase.

3) Will I get back-pay if the payroll cut-off is missed?

If your department cannot apply the increase in the October run due to administrative timing, it should pay arrears in November, covering 1–31 October.

4) I am on an occupation-specific dispensation. Do I still get 4.7 percent?

It depends on how your dispensation interacts with the agreement. Some OSD categories may be included, others adjusted differently. Refer to Circular No. 7 of 2025 and confirm with HR.

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5) Are allowances and overtime rates also increasing?

Some allowances or overtime rates that are calculated as a percentage of basic salary may adjust indirectly. Others are fixed rand amounts. Your departmental HR guide will list each item.

6) What if my role is excluded?

If you fall in a category not covered by the 4.7 percent, HR should indicate whether an alternative process applies or whether your package is addressed in a separate framework. Keep an eye on official notices.

7) Where can I see the bargaining council resolution?

The resolution text is published through the bargaining council and will be shared in departmental communications. For high-level references and past resolutions, visit www.pscbc.org.za.

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Closing note

The October 2025 pay rise marks the second leg of a two-year deal meant to stabilise purchasing power for the public service while keeping the wage bill within planned ceilings. For most employees on Levels 1–12, the increase should reflect in the October payroll. If your post is exceptional or you work under a sectoral dispensation, rely on the implementation circular and your HR notices for the precise treatment. Keep copies of your payslips, verify the 4.7 percent adjustment, and escalate any discrepancies promptly through official channels.