South Africa is trying to rein in public sector salaries to stem a rapid build-up in debt that's been exacerbated by COVID-19.

In the 2021 budget presented in February, National Treasury said ways to curb the wage bill could include freezing salaries for the next three years, headcount reductions and changing or abolishing some benefits for civil servants.

Those proposals further strained relations with unions, after a court battle over the government’s failure to raise salaries last year.

The Public Servants Association said in a statement it rejected a revised government offer made on Friday and would strike to secure salary increases for its more than 235 000 members.

Moneyweb