Answer to Question #206236 in Microeconomics for Alunamda

Question

Brief explanation on the background of public sector wage bill in south Africa

Answer 1

Public sector wage bill is a composition of a regular payroll to the public sector employees. it may comprise of basic salary and house allowances. It was developed in south Africa after end of apartheid in 1994 where African National Congress(ANC) desired to empower many disadvantaged people. Among the strategies used was to place them in public sector jobs. Public wage bill has been protected by powerful unions which have worked hand in hand with ANC. According to a report in October 2020, government spending on salaries in South Africa tripled between 2007 and 2019. It has further risen by 40% over the past decade.