• South Africa to raise public officials’ salaries by 3.8-4.1% from April

• Increases come amid fiscal constraints and modest economic recovery

• COSATU criticises move as VAT rises to 16%

South African President Cyril Ramaphosa announced an increase in salaries for public officials of between 3.8% and 4.1% starting April 1, 2026, according to a statement released on Tuesday, Jan. 20, 2026.

The 3.8% increase applies to members of the executive, members of parliament, members of provincial executive councils, and members of provincial legislatures. The 4.1% increase applies to judges, magistrates, traditional leaders, and members of independent constitutional institutions.

The presidency said the decision was taken after reviewing the recommendations of the Independent Commission for the Remuneration of Public Office Bearers.

The statement did not specify how the salary adjustment would be funded. The announcement comes at a time when South Africa faces fiscal constraints, particularly due to slower economic growth and growing social needs.

Economic growth in South Africa has improved in recent months after several years marked by persistent difficulties linked to the energy crisis, disruptions in rail and port operations, and the imposition of high customs duties. According to the International Monetary Fund (IMF), the South African economy has remained resilient thanks to its abundant mining resources, independent institutions, and a credible inflation-targeting framework.

However, obstacles remain, including rigid product and labor markets, governance difficulties, inadequate infrastructure, and high public debt. This limits the economy’s ability to recover, create jobs, and reach its full growth potential.

The authorities also expect higher revenues and a reduction in spending while preserving public investment and social spending. The IMF said that in the absence of clearly defined additional budget reforms, revenues are likely to grow more modestly, while the reduction in public spending would be more gradual than the authorities anticipate.

Value-added tax (VAT) will increase by 0.5 percentage points on April 1, 2026, rising from 15% to 16%.

The Congress of South African Trade Unions (COSATU) expressed strong criticism, particularly regarding the 3.8% salary increase, which it called indecent. COSATU said that if the government has surplus funds, it should hire the doctors, nurses, teachers, police officers, and other frontline workers needed to provide essential services to working-class communities and the economy.

Lydie Mobio