Public Service and Administration Minister Ayanda Dlodlo says she has the sole prerogative to determine wage increases for senior government officials - not labour unions.

Dlodlo has taken issue with the Public Servants Association of SA's public statement that it "vigorously pursued" salary increases for senior management members (SMS) in the government.

Dlodlo's office announced that senior government employees would receive a salary increase. This part of the workforce was not included in the wage negotiations for the 2021/2022 financial year.

The salary increase is 1.5%. A cash incentive will also be paid, backdated to 1 April.

The minister said that unlike public servants in lower band levels one to 12, she would determine the salary increases of senior managers – levels 13 to 16 - in consultation with the finance minister.

She said labour unions only interacted in a negotiation process at the Public Sector Bargaining Council for workers on levels one to 12. 

Dlodlo said labour unions were entitled to engage with her office on behalf of senior members. However, the engagement was simply consultative and did not amount to a negotiation process.

"It is worth emphasising that labour unions do not negotiate salary increases for SMS members. What should also be taken into consideration is that SMS members have not received cost-of-living adjustments for a few years, which would negatively impact their pensions. The current cost-of-living adjustment also entails contributions to the pension of employees," she said.

"What the labour unions are entitled to do on behalf of their members, and rightfully so, is to regularly make enquiries with the Minister for the Public Service and Administration on the progress relating to salary increases of SMS members. As an open and transparent government, feedback is provided to the labour unions... until a determination has been made," she added.

The size of the public sector wage bill has been flagged as an issue in the government's struggle to manage its finances.

Dlodlo said that in determining pay upgrades, the government was walking tight rope in managing the wage bill and rising costs of living.

She said senior officials had not received a wage increase in years, which was likely to impact their pensions.

"Overall, the objective should be to manage the cost of employment and cost of delivery of services while ensuring that the wage bill is commensurate with affordability considerations over time. The dwindling fiscus has necessitated that government reviews how it can operate with the bare resources at its disposal. At all times, the government has to strike a balance between the needs of the public servants on the one hand and the broader socio-economic challenges facing the state," Dlodlo said.