Employee compensation takes the lion’s share of public enterprises budget

JOHANNESBURG – Public Enterprises Minister Pravin Gordhan says employee compensation remains the department’s biggest expenditure item and to put a cap on this, only critical posts will be filled in the medium term.

Gordhan delivered his budget vote for the 2022/2023 financial year where said his department had been allocated a budget of R23.9 billion and a large portion of which would go towards financial assets.

Gordhan said measures were in place to ensure employee compensation remained within the expenditure ceiling.

"Of the funds, payments for financial assets account for 98.2% of the total expenditure over the period ahead."

Gordhan said measures were in place to ensure employee compensation remained within the expenditure ceiling.

"Compensation of employees is the department’s largest expenditure item, increasing at an average 5.8% from R159 million in 2021/2022 to R188.1 billion in 2022/2025."

Meanwhile, on governance Gordhan said preparations have begun for the establishment of a state-owned holding company to house strategic state-owned enterprises (SOE).

The minister added that the presidential SOE council was preparing a recommendation on which entities would be retained, consolidated or disposed of.

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