Data Visualisation Test

Distribution of Public Expenditure

Compensation of employees is the largest category of spending at 35.3% of total expenditure. This spending has grown significantly since 2008/09, rising to R510.3 billion in 2016/17. Growth in the public sector wage bill has outpaced inflation and economic growth, putting pressure on the fiscal framework. Personnel spending consumes a large share of provincial budgets, particularly in education and health sectors.

Public Expenditure Growth

Between 2008/09 and 2016/17, total government spending more than doubled from R697 billion to R1.45 trillion. Compensation of employees increased by 119%, growing from R233.3 billion to R510.3 billion. This significant growth reflects both expanding public services and rising real wages. Interest payments saw the highest relative growth at 162%, highlighting the increasing cost of government debt.

Annual Growth by Expenditure Category

Interest payments on government debt grew the fastest among all expenditure categories, at an average annual rate of 12.8%. Compensation of employees grew at 10.3% per year, significantly above inflation. This rapid growth in the public sector wage bill has crowded out other spending priorities, particularly capital investment which grew at a more moderate 8.2% annually. Overall government spending grew at an average annual rate of 9.3%.

Compensation as % of Total Expenditure

Personnel costs consume a growing share of departmental budgets, particularly in labor-intensive services. The Police Service has the highest share at 76.6% of its budget devoted to compensation. Most sectors saw increases in their compensation-to-expenditure ratio between 2008/09 and 2016/17, with Defence experiencing the largest increase from 38.2% to 57.3%. This trend limits fiscal flexibility and crowds out other spending priorities.

Provincial Health Compensation

All provinces devote a large portion of their health budgets to personnel costs, with Limpopo showing the highest increase from 58.9% in 2008/09 to 71.0% in 2016/17. The rising compensation costs reflect both increased staffing to expand healthcare access and above-inflation wage increases. This trend has constrained budgets for medical supplies, equipment, and infrastructure, potentially affecting service delivery quality.

Public Service Employment and Compensation

Teachers represent the largest employment group but saw virtually no headcount growth between 2009/10 and 2016/17. In contrast, the nursing workforce grew by 22% during this period. Average compensation increased across all groups, with teachers seeing the largest increase from R317,028 to R374,450. Police and corrections officers remain the lowest compensated on average among these major groups despite significant increases.

Growth Rates by Service Group

The nursing sector experienced the highest employment growth at 2.9% annually, while teacher numbers remained virtually unchanged. Despite this difference in employment growth, compensation growth rates were similar across all groups at around 2.1-2.4% annually in real terms. This indicates that wage increases, rather than headcount growth, were the primary driver of rising public sector compensation costs.

Non-OSD Employment by Salary Level

For non-OSD (Occupation Specific Dispensation) employees, there has been a significant shift in the distribution across salary levels. Lower-level positions (levels 1-4) decreased by 24% while middle-level positions (levels 5-8) increased by 44%. This reflects both professionalizing the public service and a general upward movement in the salary structure. Management positions at levels 13-16 increased by 28%, contributing to higher average personnel costs.

OSD Employment by Salary Level

For OSD employees (specialized professions like teachers, nurses, etc.), the most dramatic growth occurred at the highest salary levels (13-16), with a 329% increase. Middle-level professional positions (levels 5-8) saw moderate growth of 7%. The introduction and expansion of the OSD framework has contributed significantly to wage bill pressures as it generally provides for higher remuneration compared to general public service positions.

Employment Growth by Level

Employment growth rates show contrasting patterns between OSD and non-OSD employees. Both categories experienced declines in entry-level positions. However, at the highest salary levels (13-16), OSD positions grew at a remarkable 20% annually, compared to 3.2% for non-OSD positions. This reflects both the expansion of specialized services and the upward drift in the seniority structure of the public service.

Average Remuneration by Level

Real remuneration has increased across all salary levels between 2008/09 and 2016/17. Entry-level positions (levels 1-4) saw the largest percentage increase at 34%, while senior management (levels 13-16) saw the smallest relative increase at 13%. However, in absolute terms, the increase for senior management was nearly R140,000 per employee. Overall average remuneration increased by 30% in real terms, from R259,966 to R337,971.

Remuneration Growth by Level

Annual growth in real remuneration has been strongest at the lowest salary levels (3.7% for levels 1-4) and decreases progressively for higher levels, with senior management (levels 13-16) seeing just 1.5% annual growth. This pattern indicates a greater emphasis on improving compensation for lower-paid employees. Despite this, the average annual growth rate of 3.3% across all levels exceeds both inflation and economic growth rates for much of this period.