Public Servants Salary Increase 2027: What the Wage Deal Says
Salary Increases at a Glance
| Financial year | Increase | Starts | Status |
|---|---|---|---|
| 2025/26 | 5.5% | 1 April 2025 | Paid |
| 2026/27 | 4% | 1 April 2026 | Paid, with back pay in April 2026 |
| 2027/28 | Projected CPI, between 4% and 6% | 1 April 2027 | Final figure set in the 2027 Budget |
These increases come from PSCBC Resolution 1 of 2025, a three-year wage agreement signed at the Public Service Co-ordinating Bargaining Council (PSCBC).
How the 2027 Increase Is Worked Out
The agreement links the increase to inflation, with a minimum and a maximum:
- If projected CPI is below 4%, you still get 4%.
- If projected CPI is between 4% and 6%, you get that CPI figure.
- If projected CPI is above 6%, you get 6%.
Projected CPI is the inflation forecast that National Treasury publishes when the Minister of Finance tables the main budget. For 2026/27 it was 3.4%, so the 4% minimum applied. For 2027/28, the 2026 Budget Review estimated CPI at 3.2%. If the 2027 Budget keeps the forecast below 4%, the increase from 1 April 2027 will again be 4%.
Who Gets the Increase?
The increase applies to public service employees on salary levels 1 to 12. This includes staff paid under an occupation-specific dispensation (OSD), which covers professions such as nurses, educators and legal professionals.
Senior managers on salary level 13 and above are not covered by this agreement. Their adjustments are decided separately.
What 4% Means for Your Pay
Here is what a 4% increase looks like on a monthly salary before tax:
| Monthly salary now | Increase of 4% | New monthly salary |
|---|---|---|
| R12,000 | R480 | R12,480 |
| R18,000 | R720 | R18,720 |
| R25,000 | R1,000 | R26,000 |
| R35,000 | R1,400 | R36,400 |
Your take-home pay goes up by less than this, because tax, pension and other deductions also change. If the 2027 figure ends up higher than 4%, the amounts will be higher too.
When Will the April 2027 Increase Be Paid?
The increase takes effect on 1 April 2027. In 2026, the payroll system had to be updated first. The 4% increase was then paid through a special salary run on 23 April 2026, and staff paid at the end of the month received their back pay on their normal pay date, 30 April 2026. A similar process is likely in 2027.
What Does the Increase Cost?
In a written reply to Parliament in 2026, the Minister of Finance said the agreement is budgeted at about R24.3 billion for 2026/27 and R25.5 billion for 2027/28, including carry-through costs.
What Unions Are Saying
Some unions, such as NUPSAW, have asked for the agreement to be reviewed because of rising costs, such as fuel prices and medical aid contributions. Any change would have to be agreed at the PSCBC. Until then, the formula above applies.
Public Servants Salary Questions
What is the public servants salary increase for 2027?
It will be equal to projected CPI for 2027/28, with a minimum of 4% and a maximum of 6%. Treasury’s current estimate of 3.2% means it would be 4% unless the forecast changes.
When does the 2027 public service salary increase start?
On 1 April 2027.
How much did public servants get in 2026?
4% from 1 April 2026, for salary levels 1 to 12 and OSD employees.
Does the increase apply to teachers and nurses?
Yes, if they are public service employees on salary levels 1 to 12, including those paid under an OSD.
When will the exact 2027 percentage be known?
When the Minister of Finance tables the 2027 Budget, which is usually in February.
More work and money guides: minimum wage, SARS tax tables 2027 and learnerships 2027.