The government has rolled out early retirement packages for older public servants in it's effort to cut wage costs. Employees between 55 and 60 have until September to retire without penalties to their pension.
The state has begun efforts to minimise its high wage costs, beginning with the implementation of early retirements.
IOL reports that guidelines have already been released to thousands of government employees between the ages of 55 and 60 to retire early.
Both unions and workers have started to think over the offer, which came into effect as of 1 April.
All public servants, including teachers, police officers and soldiers, have been identified as candidates for early retirement.
Briefly.co.za reported that during his Budget Speech, Tito Mboweni had announced his strategy to cut pay budgets by R27 billion over the course of three years.
The Finance Minister had dubbed the public wage bill as 'unsustainable', calling for the funds to be shifted to investment instead.
The Department of Public Service and Administration, however, chalks the move up to a 2018 agreement with unions.
The purpose of the agreement, according to a departmental document, was to put into place measures to ensure the budget was not exceeded while protecting job security and productivity.
Tito Mboweni had explained that the funds for the early retirement rollout would be funded by the National Treasury.
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