[South Africa] Early retirement and ghost worker audit to reduce gov’t wage bill

In South Africa, the National Treasury has taken further steps to manage the growth in the government's wage bill, including a staggered early-retirement programme, auditing the number of employees on the government's payroll, and professionalising the public service, IOL reports.

Salaries and employee benefits currently account for nearly one-third of the government's consolidated expenditure. However, it has stated that the recently signed three-year wage agreement for 2025/26 to 2027/28 provides stability for public finances in the medium term.

At the 2026 National Budget Review on February 25 in Parliament, Finance Minister Enoch Godongwana said the government was taking several steps to manage the wage bill.

"Our fiscal strategy involves four key features: support economic growth by accelerating public investment, improve the efficiency of public spending, improve the composition of spending by containing the public service wage bill while increasing capital investment, and entrench sustainable public finances with a principles-led fiscal anchor," he said.

The Early Retirement Programme for eligible employees below the age 60 was reportedly introduced to rejuvenate the public service, manage the public service wage bill and enable the restructuring of departments to improve service delivery.

Budget review documents revealed that the government is conducting a ghost worker audit to identify and remove non-existent or ineligible individuals on the public sector payroll.

According to Treasury, the Department of Public Service and Administration (DPSA) has begun verifying high-risk cases and developed a method which reduces the potential for employees to be flagged incorrectly as ghost workers due to administrative errors. 

It stated that preliminary results of the ghost worker audit from national and provincial departments have been verified with the DPSA and the audit has flagged 4 323 high-risk cases requiring further verification in the PERSAL system, where payroll system fraud may be involved.

"These workers will be verified using facial matching against the National Population Register and physical verification, including cross-checking results with the DPSA and Department of Basic Education ghost worker projects," Treasury said.

Source: IOL

(Quotes via original reporting)

In South Africa, the National Treasury has taken further steps to manage the growth in the government's wage bill, including a staggered early-retirement programme, auditing the number of employees on the government's payroll, and professionalising the public service, IOL reports.

Salaries and employee benefits currently account for nearly one-third of the government's consolidated expenditure. However, it has stated that the recently signed three-year wage agreement for 2025/26 to 2027/28 provides stability for public finances in the medium term.

At the 2026 National Budget Review on February 25 in Parliament, Finance Minister Enoch Godongwana said the government was taking several steps to manage the wage bill.

"Our fiscal strategy involves four key features: support economic growth by accelerating public investment, improve the efficiency of public spending, improve the composition of spending by containing the public service wage bill while increasing capital investment, and entrench sustainable public finances with a principles-led fiscal anchor," he said.

The Early Retirement Programme for eligible employees below the age 60 was reportedly introduced to rejuvenate the public service, manage the public service wage bill and enable the restructuring of departments to improve service delivery.

Budget review documents revealed that the government is conducting a ghost worker audit to identify and remove non-existent or ineligible individuals on the public sector payroll.

According to Treasury, the Department of Public Service and Administration (DPSA) has begun verifying high-risk cases and developed a method which reduces the potential for employees to be flagged incorrectly as ghost workers due to administrative errors. 

It stated that preliminary results of the ghost worker audit from national and provincial departments have been verified with the DPSA and the audit has flagged 4 323 high-risk cases requiring further verification in the PERSAL system, where payroll system fraud may be involved.

"These workers will be verified using facial matching against the National Population Register and physical verification, including cross-checking results with the DPSA and Department of Basic Education ghost worker projects," Treasury said.

Source: IOL

(Quotes via original reporting)