The Department of Public Service and Administration has officially implemented a 4% cost-of-living adjustment for public servants, effective from 1 April 2026. The increase applies to employees on salary levels 1 to 12 and those covered by Occupation Specific Dispensations (OSDs).
Public servants across South Africa will receive a 4% salary increase starting 1 April 2026. The adjustment, outlined in Circular No. 15 of 2026 issued by the Department of Public Service and Administration, gives effect to the multi-year wage agreement reached in the Public Service Co-ordinating Bargaining Council (PSCBC).
Minister Inkosi Mzamo Buthelezi described the increase as “a deliberate act of support for the men and women who serve the citizens of South Africa every day.” The 4% adjustment applies to all employees on salary levels 1 to 12 and those covered by Occupation Specific Dispensations (OSDs).
Why 4% When Inflation is Projected at 3.4%?
The National Treasury had projected Consumer Price Index (CPI) inflation for 2026/27 at 3.4%. However, the collective agreement includes a “floor” and “ceiling” mechanism. Because the projected CPI fell below the agreed 4% floor, the resolution automatically triggers the higher 4% increase. This provides public servants with a meaningful cushion against rising living costs.
The adjustment is fully pensionable and will be implemented across all qualifying employees appointed under the Public Service Act, 1994.
Who is Covered and Who is Excluded
The increase applies to the majority of public servants. However, the following groups are excluded from this specific circular and will have their adjustments handled separately:
• Senior Management Service (SMS) on levels 13 to 16 • Employees under the South African Police Service Act, Employment of Educators Act, South African Defence Act, and Correctional Services Act • National Prosecuting Authority (NPA) personnel
Additional Benefits and Adjustments
The circular also addresses pay progression, intern stipends, casual workers, and sessional rates for healthcare and social service professionals. Qualifying employees will receive pay progression for the 2025/26 performance cycle from 1 July 2026, and departments must adjust stipends for interns and developmental programmes to align with the new salary scales.
Minister Buthelezi’s Message
Minister Buthelezi said: “The implementation of this 4% adjustment is a testament to our unwavering commitment to the stability of our Public Service and the sanctity of collective bargaining… This is not merely an administrative update; it is a deliberate act of support for the men and women who serve the citizens of South Africa every day.”
He added that the government is placing significant emphasis on the future of the workforce by ensuring intern stipends and developmental programmes are adjusted in line with the new scales.
