Presidential Public Service Remuneration Review Commission

1. Presidential Public Service Remuneration Review Commission Presentation to Portfolio Committee on Public Service and Administration 19 June 2013 – Cape Town

2. Scope of the Presentation___________________________________ • Introduction • Purpose of the Commission • Terms of Reference of the Commission • Composition of the Commission • Criteria for the appointment of Commissioners • Secretariat for the Commission • Methodology • Other Support Staff • Progress on the Establishment of the Commission • Duration of the Commission

3. Introduction___________________________________ • In his State of the Nation Address (SONA), the President announced the establishment of a Public Service Remuneration Review Commission • The State has a responsibility to ensure that compensation for state employees commensurate with an increase in productivity • PSCBC Resolution 1 of 2012 directs the review of the Remuneration Policy of the Public Service, with the educators receiving priority • The Commission will act independently • Parties will be at liberty to make representation before the Commission

4. Purpose of the Commission___________________________________ • The Commission is appointed to investigate remuneration and conditions of service in the public service and public entities listed in Schedule 3A and 3C of the Public Finance Management Act (PFMA), 1999, (Act No.1 of 1999) • Remuneration of educators will receive priority • Investigate matters relating to: • Organisational development; • Job grading and job pricing; • Recruitment, appointment and promotion, • Human resource planning; • Performance management systems, policies and practices.

5. Terms Of Reference Of The Commission___________________________________ The Commission must review the remuneration and conditions of service policy in the public service and make recommendations concerning: • a fair, equitable and efficient remuneration system in the public service; • the Benchmarking of public service remuneration and conditions of service relative to market remuneration; • inefficiencies in the remuneration structure as a result of factors such as excessive remuneration or inappropriate organisational design in ensuring fairness and equity;

6. Terms of Reference of the Commission cont.___________________________________ • the current pay progression and bonus scheme in terms of its capacity to maximise service delivery without excessive wage costs; • general trends in salary level, structures and wages • the principles which define the wage bill ceiling for fiscal stability • a suitable job classification framework for the public service to establish the link between pay and responsibilities of specific jobs i.e. nurses, doctors, educators, accountants, economists, statisticians etc

7. Terms of Reference of the Commission cont.___________________________________ • the uniform job grading system in order to improve job equity throughout the public service • a sustainable framework for recruiting and retaining skilled employees • measureable key performance indicators for the public service which may be used to evaluate individual and departmental performance (including PMDS); against salary levels

8. Composition of the Commission_____________________________________ • The Presidential Commission will comprise: • A Chairperson • A Deputy Chairperson • Five (6) ordinary members

9. Criteria for the Appointment Of Commissioners_____________________________________ • Appointment of Commissioners will be informed by the area of speciality. Key among these would be: • Understanding of the public service regulatory frameworks • Remuneration and market analysis • Labour law • Understanding of the trade union movement • Research and investigative skills • Basic understanding of economic principles • Excellent written and oral communication skills • Excellent problem solving skills

10. Secretariat for the Commission_____________________________________ • It is proposed that the Chairperson appoints a Secretary of his choice with strong administrative skills and experience.

11. Methodology_____________________________________ • The Chairperson will determine the methodology of conducting the work of the commission including the drafting of the project plan.

12. Other Support Staff_____________________________________ • It is recommended that support staff with the following skills be made available to the Commission: • Report writing • Remuneration • Job grading and job evaluation • Labour relations • Understanding of trade union movement • Market analysis/ benchmarking • Costing; • Statistics • Actuarial studies/ financial modelling • Econometrics

13. Progress on establishment of Commission_____________________________________ • Terms of Reference have been developed • The Commission will commence with its work soon as the proclamation has been Gazetted

14. Duration of the Commission_____________________________________ • It is envisaged that the commission will complete its work over a period of eight (8) months and that a further two months will be required for the commission to complete the final report.

15. thank you