Budget 3.0: National Treasury slashes funds for early retirement programme
JOHANNESBURG - National Treasury has slashed funds allocated to reintroduce the early retirement programme, cutting it down by half.
A whooping R11 billion was set aside during the March budget to entice public servants into early retirement as the government tries to scale down on its enormous Public Sector Wage Bill.
The incentive for a voluntary exit is also set to rejuvenate the public service while retaining critical skills and promoting the entry of younger talent. READ IN FULL: The Budget Speech - 21 May 2025
While the plan is still in place, Finance Minister Enoch Godongwana says the money set aside for the early retirement programme has been revised to R5.5 billion for two years.
Godongwana delivered another budget at the national assembly on Wednesday, after two failed attempts earlier this year.
'This budget also retains the provisional allocations for early retirement, allocations for PRASA [Passenger Rail Agency of South Africa] and the municipal trading entity reforms announced before, but at a slightly lower level than anticipated in the March 12 budget.'
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