The Public Service Commission (PSC) has revealed that the South African government is liable for over R16 billion in accumulated leave payouts for nearly 190,000 employees hired before July 2000.
In its latest Pulse Bulletin, covering April to June 2025, the PSC highlighted the financial burden of this “contingent liability,” which affects mostly older workers in the education and health sectors.
Leave Liability a Growing Concern
PSC Commissioner Anila explained that the R16.24 billion leave debt—recorded as of December 2023—represents about 14% of the public service workforce.
“When we say it’s a contingent liability, we don’t mean money that has been spent, but rather that the state owes this amount to employees who were hired before July 2000,” she said.
Departments are required to pay out this leave when employees retire, pass away, or exit due to ill health. The PSC warned that without proper financial planning, this could strain government budgets in the coming years.
Youth Representation & Leadership Crisis
The report also raised concerns about demographic imbalances and a lack of young leaders in senior public service roles. Commissioner Anila stressed the need to fast-track youth into management positions to ensure future sustainability.
The PSC proposed:
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Restricting junior-level jobs (Levels 4-6) to applicants aged 18-34
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Limiting internships to the same age group
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Developing a youth pipeline for senior leadership roles
Racial Imbalance Threatens Cohesion
The PSC further warned that the over-representation of Black Africans in the public service, alongside the under-representation of Coloured, White, and Indian employees, could threaten national cohesion.
No Update on Unpaid Service Providers
The bulletin did not provide updates on outstanding payments to service providers, citing unavailable data.
As the government grapples with these challenges, the PSC’s findings underscore the need for financial planning, workforce transformation, and inclusive hiring policies to ensure a sustainable and representative public service.