The Minister of Labour, NM Oliphant, on the 12 February 2016 announced in a Government Gazette (39683) that she intends to increase the amount of earnings (the remuneration of an employee at the time of the accident or the commencement of the occupational disease) under Section 83 (8) of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 130 of 1993).
With effect from 1 April 2016 the maximum amount of earnings will increase from R355 752 to R377 097 per annum.
Budget Review 2016 – A focus on Remuneration and Collective Bargaining Reforms
Following the 2016 budget speech/review, Finance Minister Pravin Gordhan made mention of a few pointers which might be quite relevant for remuneration professionals to consider in the next round of salary increases or wage agreements. This included the following:
- Government has reached an agreement on the principle of a notional minimum wage. However, deliberations still continue on an appropriate level and how it will be determined.
- The National Treasury, the Department of Public Services and Administration (DPSA)and the Department of Planning, Monitoring and Evaluation (DPME)are assessing the 2015 public sector wage negotiation process, where the following issues were identified:
- There is excessive focus on short-term cost of living adjustment;
- Insufficient focus on longer-term reforms to public sector employment practices and remuneration structures that could improve performance, service delivery and fiscal sustainability;
- Weakness in collective bargaining chambers; and
- There seems to be an increase in remuneration and wage bills which in most cases it’s not always linked to increase in productivity.
- The results of the assessment will be used by the National Treasury in partnership with the DPSA and DPME to develop and propose reforms to collective bargaining and remuneration that could further enhance fiscal stability;
- Government further suggests that remuneration frameworks be reviewed and a framework to measure productivity be developed that will ensure that wage settlement and remuneration growth is contained and linked to efficient performance at an individual and organisational level.
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