Answer to Question #199260 in Macroeconomics for Esethu

Question

Can the approaches used by other countries to deal with the increasing public sector wage bill be used in South Africa

Answer 1

Approaches used by other countries to deal with the increasing public sector wage bill can not be used in South Africa. For instance, most of the employees in South Africa are under-paid therefore cutting down their wages will increase poverty level. Additionally, a reasonable number of the highly paid employees are not ready to work on low salaries and had even threatened to protest for the same.

Cutting down of wages applies mostly to developed countries therefore, dealing with increasing government spending may not deal with the increasing public sector wage bill be used in South Africa.