Finance Minister Enoch Godongwana says the total cost of the early severance package for civil servants amounts to R3.7 billion and the estimated net savings are R5.5 billion.
Image: Phando Jikelo/ Parliament of SA
A total of R3.7 billion was paid in severance packages to nearly 8,000 civil servants who left the public service since government’s Early Retirement Programme was introduced last October.
“The total cost of the early retirements amounts to R3.7 billion and the estimated net savings are R5.5 billion, of which R2.6 billion will be realised in 2026/27, R1.4 billion in 2027/28 and R1.5 billion in 2028/29,” said the National Treasury.
This was revealed in the 2026 Budget Review document tabled in Parliament on Wednesday when Finance Minister Enoch Godongwana tabled his 2026 Budget speech.
The Early Retirement Programme for eligible employees was introduced to rejuvenate the public service as part of medium term fiscal strategy to curtail the public-service wage bill.
The National Treasury said of the 7 687 civil servants who took severance packages, 4 644 relate to provincial departments and 3043 to national departments.
According to the National Treasury, R3.7 billion had been allocated to departmental baselines for the Early Retirement Programme in 2025/26 and 2026/27.
The Early Retirement Programme for eligible employees was introduced to rejuvenate the public service as part of medium term fiscal strategy to curtail the public-service wage bill.
Image: Supplied
A cursory look at the department’s budget allocations for the severance packages in 2025:
* Social Development, R8.9m;
* Human Settlements, R5.5m;
* Health R13m;
* Sport, Arts and Culture R9.4m;
* Correcitonsl ASerovcs R418.7m;
* Defence R76m;
* Home Affairs R36.7m;
* Police R568m;
* Dirco R19.4m;
* Agricultiure R23m;
* Land Reform R37m; and
* Water and Sanitation R42.5m
The South African Social Security Agency will receive an additional R58.4 million in 2026/27 for costs related to the incentivised early retirement and voluntary exit programmes for 134 employees.
The National Treasury said provinces will allocated an additional R32.3 billion, of which R9.9 billion supports employee compensation pressures in education, over the next three years.
A total of R21.3 billion is allocated for health sector compensation and the employment of doctors, and to make up for shortfalls in goods and services expenditure.
The National Treasury said additional allocations to the provincial equitable share include R341.7 million to equalise Grade R teacher pay, R340.3 million for the Early Retirement Programme, and R318.8 million for the presidential employment initiative.
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