DPSA Announces 2025/26 Public Service Cost-of-Living Adjustments: Key Details for Public Servants
DPSA Announces – The Department of Public Service and Administration (DPSA), led by Acting Director-General Mr. Willie Vukela, has released an important circular detailing the cost-of-living adjustments for public servants. This new adjustment is in line with the Public Service Coordinating Bargaining Council (PSCBC) Resolution 1 of 2025, which governs the salary increases for public service employees over the next three years.
Thank you for reading this post, don't forget to subscribe!Overview of DPSA Circular No. 7 of 2025: DPSA Announces Public Service Salary Adjustments
DPSA Circular No. 7 of 2025 outlines improvements in the conditions of service for public employees, specifically those on salary levels 1 to 12, as well as those covered by Occupation-Specific Dispensations (OSDs). The circular announces pensionable salary increases for the upcoming 2025/26 financial year and offers a preview of future adjustments as per the PSCBC Resolution.
Implementation of PSCBC Resolution 1 of 2025: DPSA Announces
PSCBC Resolution 1 of 2025 sets clear guidelines for salary adjustments for the financial years 2025/26, 2026/27, and 2027/28. Public servants on salary levels 1 to 12—including those receiving OSDs—will benefit from the following salary increases:
- 2025/26 Financial Year: A 5.5% increase, effective from April 1, 2025.
- 2026/27 and 2027/28 Financial Years: Projected adjustments based on the Consumer Price Index (CPI), as determined by the National Treasury during the main budget tabling.
DPSA Announces – This salary increase is a part of ongoing efforts to improve the conditions of service for employees, addressing the rising cost of living and ensuring that public servants receive fair compensation.
Salary Adjustment Details for 2025/26
DPSA Announces – According to the DPSA circular, the salary scales that applied up to March 31, 2025, will be adjusted by 5.5% for the 2025/26 financial year. These adjustments will take effect from April 1, 2025, across all salary levels from 1 to 12, as well as for employees under OSDs, in accordance with the terms outlined in PSCBC Resolution 1 of 2025.
Who Does This Adjustment Apply To?
DPSA Announces – This salary adjustment applies specifically to employees on salary levels 1 to 12 and those under OSDs, who are appointed under the Public Service Act of 1994. These groups of employees will see a significant improvement in their financial well-being, helping them cope with the rising cost of living and inflation.
However, it’s important to note that this adjustment does not apply to certain personnel groups. These groups will either receive separate adjustments or will have their adjustments addressed by the relevant Executive Authorities. The excluded personnel groups include: DPSA Announces
- Employees under specific Acts: Public servants employed under the Employment of Educators Act, South African Police Services Act, South African Defence Act, and Correctional Services Act, 1998. Adjustments for these personnel groups will be managed by the respective Sectoral Ministers.
- Personnel under the National Prosecuting Authority Act, 1998: This group is also excluded from the current adjustment.
- Senior Management Service (SMS): Members of the SMS (salary levels 13 to 16) will not see immediate adjustments. Their adjustments will be addressed once the conditions for staff below the SMS echelon have been finalized.
Ministerial Determination and Compliance: DPSA Announces
As part of the formal process, PSCBC Resolution 1 of 2025 has been recognized as a determination by the Minister for Public Service and Administration (MPSA). This determination ensures that the salary increases are implemented in line with public service policies.
DPSA Announces – The MPSA retains the authority to clarify or amend this determination through additional directives. These directives will ensure that all employees in the public service receive the benefits they are entitled to, in accordance with the terms of the agreement. This circular serves to further explain the determination for employees appointed under the Public Service Act, reinforcing the commitment to improving conditions of service within the public service sector.
Action for Heads of Departments and Provincial Administrations
Heads of national and provincial departments, as well as provincial administrations, are encouraged to review the full circular and ensure compliance with the new salary adjustments. It is crucial that all public service departments align their salary schedules with the new guidelines, ensuring that the increases are implemented accurately and on time.
Why Are These Adjustments Important?
DPSA Announces – Cost-of-living adjustments are crucial for maintaining the financial stability of public servants in South Africa. Public service employees play an essential role in delivering vital services to citizens, and it is necessary to ensure they are compensated fairly for their work. With inflation rates and the cost of living continuing to rise, salary increases like those outlined in the DPSA Circular help to safeguard public employees’ purchasing power and morale.
By adhering to PSCBC Resolution 1 of 2025, the South African government is signaling its commitment to improving the well-being of public servants, ensuring that they can continue to contribute effectively to the nation’s development.
Conclusion: What Public Servants Need to Know
The DPSA’s announcement of the 2025/26 cost-of-living adjustments marks an important step in improving the financial standing of public servants in South Africa. A 5.5% salary increase will provide much-needed relief to public employees on salary levels 1 to 12 and those on OSDs, helping them to keep pace with inflation and rising living costs.
For those working under specific Acts or in the Senior Management Service (SMS), the adjustment process will follow different timelines and criteria, depending on their roles and applicable regulations. Public servants are advised to stay informed and ensure they understand how these changes affect their compensation.
Ultimately, the implementation of PSCBC Resolution 1 of 2025 represents a positive move towards fair and equitable pay for South Africa’s public sector workforce, and it will play a key role in improving morale, productivity, and job satisfaction for public servants over the next three years.
For further details, public servants and department heads should refer to the full DPSA Circular and take appropriate steps to ensure compliance with the updated salary structure.
