Northern Cape has lowest wage bill in the country, says Finance Ministry

THE MINISTRY of Finance, Economic Development and Tourism said that the Northern Cape’s wage bill is the lowest in the country, constituting less than 60 percent of the total provincial budget. This is in contrast to other provinces, it said, where compensation budgets range between 60 and 70 percent of their respective provincial budgets.

Spokesperson for the Ministry, Kgalalelo Matsime, said the department was committed to maintaining a balanced budget while addressing essential service delivery needs.

“In terms of economic classification, compensation of employees accounts for 58 percent of the total provincial budget for the Northern Cape. This percentage is currently the lowest in the country,” said Matsime.

She added that, as of the 2024/25 fiscal year, the province employed 27,647 individuals, with the number projected to increase by 192 in the 2025/26 fiscal year.

“This will include the new appointment of 27 social workers and other critical roles across various departments that directly enhance service delivery.” 

Matsime acknowledged the challenges currently facing the Education and Health sectors.

“To address these issues, the Minister of Finance announced that additional resources would be made available over the medium term to ensure sustainability in these vital areas. 

“Highly labour-intensive departments - Health and Education - collectively constitute approximately 75 percent of the provincial budget. Therefore, there is nothing untoward given the amount of resources we allocate towards paying salaries. This aligns with their constitutional mandate,” she stated.