The government’s plan to offer early retirement to public sector employees risks a flight of skills and will not free up enough funds to address the understaffing in health and education, civil society organisation Section 27 said on Thursday.
The National Treasury announced in the medium-term budget policy statement (MTBPS) on Wednesday that cabinet had approved a R11bn package to encourage early retirement among civil servants to reduce the wage bill and make way for younger talent.
Early retirement prevented skills transfer and left junior staff such as nurses relying “solely on textbook knowledge”, Section 27 said in a statement.
It expressed disappointment at the Treasury’s decision to resist pressure to increase spending on health and education personnel, warning that staff shortages affected the quality of health services and teaching. Provincial health departments have reported extensive vacancy rates, while provincial education departments are cutting back on teachers and key programmes such as school transport.
The Treasury said controlling growth in the public sector wage bill was integral to its medium-term fiscal strategy, noting that SA’s spending on public sector salaries as a percentage of GDP was well above many other countries. In 2022, it stood at 13.6% of GDP, putting it above the Organisation for Economic Co-operation and Development (OECD) average of 10.1%.
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