Tabling South Africa's national budget in Parliament, Mboweni said the national and provincial employee compensation budget would be cut by R27 billion over the next three financial years.

"The public wage bill is unsustainable. We must shift expenditure to investment," he said.

"The first step is to allow older public servants who want to do so, to retire early and gracefully."

According to the budget review document, if approximately 30,000 of the 126, 710 public servants aged between 55 and 59 take up this offer, it could save the government around R20.3 billion.

Details of the early retirement framework will be released by Public Service and Administration Minister Ayanda Dlodlo this week.

African News Agency (ANA)