DPSA issues circular for departments to implement 7,5% salary increase. (2024)

A circular with the latest revised salary scales for public servants has been issued to all provincial administrators, Heads of national and provincial departments.

The circular issued by the Department of Public Service and Administration (DPSA) follows a 7.5% salary agreement between the government and majority trade unions during a special Public Service Coordinating Bargaining Council (PSCBC) meeting on March 30, 2023.

DPSA’s Director-General, Ms Yoliswa Makhasi said: “the salary scales that applied up to 31 March 2023 are adjusted by 3.3% across all levels with effect from 1 April 2023.

“The payment of non-pensionable allowance is translated into a pensionable salary estimated at an average of 4.2% with effect from 1 April 2023.”

Salary notch as at 31 March 2023Salary notch plus 3.3%Non-pensionable allowance (NPA) * 12 monthsNew notch as at 1 April 2023
99 51399 513 + 3.3% = 102 7981 220 x 12 = 14 64117 438

Resolution 2 of 2023 provides for the implementation of two distinct types of benefits for employees on salary levels 1 – 12 and those employees covered by occupation specific dispensations (OSDs) on equivalent levels namely:

  • Translation of the current non-pensionable cash allowance into a pensionable salary, estimated at an average of four-point two percent (4.2%) with effect from 1 April 2023; and
  • 2 An additional three-point three percent (3.3%) pensionable salary adjustment to all employees on salary levels 1 – 12 employed in the public service with effect from 1 April 2023.


Ms Makhasi said while the circular applies to employees on salary levels 1 to 12 and those covered by OSDs who are appointed in terms of the Public Service Act, 1994, it does not apply to other personnel groups such as Members of the Senior Management Service (SMS) (salary levels 13 to 16).

“Salary adjustments for members of Senior Management Service (SMS) will be dealt with as soon as the implementation of the improvement in conditions of service for employees on salary levels 1 to 12 and those employees covered by the OSDs, have been finalised.

“Personnel on salary levels 1 to 12, and where applicable, employees covered by OSDs, employed in terms of the Employment of Educators Act, 1994, the South African Police Act, 1995 and the Correctional Services Act, 1998, as determined by the relevant Sectoral Ministers. Personnel employed in terms of the National Prosecuting Authority Act, 1998,” she said.


Director-General Makhasi said this circular, therefore, serves as Directive by the MPSA to elucidate or supplement the Determination for employees employed in terms of the Public Service Act, 1994.


“Noting that in terms of section 5(4) of the Public Service Act no functionary may deviate from any collective agreement or the determined salary scales, departments should submit to the DPSA any remuneration, rates, allowances, etc. which are not covered in this Circular, or Appendices thereto, and which must be adjusted,” she said.

The sessional rates payable to employees covered by the following OSDs, effective from 1 April 2023: professional nurses, staff nurses, and nursing assistants, social workers, medical officers, medical specialists, dentists, dental specialists, pharmacologists, pharmacists and emergency care practitioners, therapeutic, diagnostic, and other allied health professionals.


Hourly and daily rates for contract and casual employees appointed in terms of the Public Service Act, 1994 and Correctional Services Act, must be calculated according to the following formula:

Notch (inflated with 37%) or TCE remuneration package Prescribed work hours per week for a full-time employee x 52 weeks. A daily rate is determined by multiplying the hourly rate by the prescribed work hours per day.

If hourly/daily rates in Annexure B to the Financial Manual are already higher than what it would be in terms of the stipulated calculation basis, the MPSA determined that the affected rates must be retained at existing rates, without any adjustments, until such time that it is equal to the rates in terms of the formula.

Departments’ attention was drawn to Sub-regulation 43 (3) of the Public Service Regulations, 2016, and DPSA circular 2 of 2013 in this regard.


Departments are advised to ensure that the stipend of the interns are adjusted and linked to the approved salary scales. This must be with effect from 1 April 2023 and moving forward until the next adjustment by the MPSA.

PERSAL will implement the adjustment programmatically on the system. A PERSAL window message will be submitted to all PERSAL Controllers on the implementation date for this group.


“It must be noted that each department shall process the payment of the pay progression to all qualifying employees employed in the public service in respect of the 2022/23 performance cycle in terms of any or all provisions of the PSCBC and Sectoral Agreements regulating the payment of pay progression including the Incentive Policy Framework, with effect from 1 July 2023,” she said adding that PERSAL will implement the salary adjustment programmatically on the system.

DPSA issues circular for departments to implement 7,5% salary increase. (2024)


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