Public Service and Administration on Cost of Leaving Adjustment (COLA) for Senior Management Service (SMS) in the Public Service

Improvement of conditions of service for members of senior management service in the Public Service

The Director-General of the Department of Public Service and Administration, Ms. Yoliswa Makhasi, has issued a Circular advising Heads of Departments on the Cost of Leaving Adjustment (COLA) for members of the Senior Management Service (SMS) in the Public Service.

The Circular follows the determination of a non-pensionable cash allowance, and a once-off pensionable salary adjustment of 1.5% to all members of the SMS in lieu of pay progression, both with effect from 1 April 2021 by the Minister for Public Service and Administration, Ms. Ayanda Dlodlo. This is linked to the Public Service Coordinating Bargaining Council (PSCBC) Resolution 1 of 2021 which provided for the same adjustments to officials in salary levels 1 to 12.

The 2021 COLA provides for the implementation of two distinct types of benefits for SMS members namely:

 

The payment of a non-pensionable monthly cash allowance with effect from 1 April 2021 to 31 March 2022 as follows;

 

A once-off pensionable salary adjustment of 1.5% in lieu of pay progression to all SMS members with effect from 1 April 2021.

The implementation of the 2021 SMS COLA will be effected on or before 21 March 2022 to allow PERSAL to finalize the 2022 tax process, coding, capturing, validation and running the payments.

Any SMS member who was in the employ on 1 April 2021, but whose services were terminated, for whatever reason, before the implementation of the non-pensionable cash allowances qualifies and is eligible for the payment of the non-pensionable cash allowance for the months they were in service.

As was the case with the cost-of-living adjustment for employees on salary levels 1 – 12, the salary adjustments for members of the SMS are granted in lieu of pay progression which will be implemented programmatically through PERSAL. This means that no pay progression should be effected for the 2020/21 performance cycle to prevent so-called “double dipping”.

Departments that have already implemented payment of pay progression to qualifying members of the SMS must ensure that the principle of “double dipping” does not apply and where pay progression has been implemented it should be reversed.

Furthermore, any department that has already implemented payment of pay progression in terms of the 2020/21 performance cycle, must confirm such to Mr. Samson Radebe, email: Samson.Radebe@dpsa.gov.za(link sends e-mail), including a list of members of the SMS who received the payment of pay progression, within 10 days from the date of this Circular.

Should any problems arise with the implementation of this circular, Departments must approach the DPSA for assistance. Departments must please ensure that their employees are made aware that the DPSA may only be approached by Heads of Departments and not directly by employees in line with Public Service Regulations, 2016 regulation 6(2).

We thank SMS members for their patience and understanding as we were working through the approval processes.

 

 

Source: Government of South Africa