Cyril Ramaphosa announces that ministers will take a salary cut

President Cyril Ramaphosa delivering the keynote address at the 2020 Business Unity South Africa (BUSA) Business Economic Indaba at the Sandton Convention Centre.rrThe Indaba has identified energy security, enabling a capable state, critical sectors for economic growth, the structure of the economy; and the Forth Industrial Revolution as issues for discussion. The President was received by BUSA President Sipho Pityana on arrival. 14/01/2020, Elmond Jiyane, GCIS

Cyril Ramaphosa: Ministers take hefty pay cut to prop up Solidarity Fund

President Cyril Ramaphosa, on Thursday, announced that ministers’ salaries would be cut for the next three months.

Cyril Ramaphosa announces that ministers will take a salary cut

President Cyril Ramaphosa delivering the keynote address at the 2020 Business Unity South Africa (BUSA) Business Economic Indaba at the Sandton Convention Centre.rrThe Indaba has identified energy security, enabling a capable state, critical sectors for economic growth, the structure of the economy; and the Forth Industrial Revolution as issues for discussion. The President was received by BUSA President Sipho Pityana on arrival. 14/01/2020, Elmond Jiyane, GCIS

President Cyril Ramaphosa, on Thursday 9 April, dropped multiple bombs in his nationwide address. The first was that the 21-day lockdown would be extended by another two weeks — something most South Africans are distraught over. The other was that ministers would take a salary cut. 

One-third of ministers’ wages will now be taken away for a period of three months. It will then be directed to the Solidarity Fund. 

We now have over 1.5 million confirmed cases worldwide. Over 90 000 people across the world have died from this disease.

The number of confirmed cases in South Africa on Thursday 9 April stands at 1 934.

“In the two weeks before the lockdown, the average daily increase in new cases was around 42%. Since the start of the lockdown, the average daily increase has been around 4%.”

Cyril Ramaphosa

Ramaphosa announces that ministers will take pay cut

As Ramaphosa noted in his address, it’s time to take our precautionary measures seriously and ramp up all our efforts. 

One of the many sacrifices included the salary cut that many ministers would have to endure for the next three months. 

“In support of this effort, we have decided that the President, Deputy President, Ministers and Deputy Ministers will each take a one-third cut in their salaries for the next three months,” said Ramaphosa. 

According to Ramaphosa’s statement, it includes he himself taking a pay cut.

“This portion of their salaries will be donated to the Solidarity Fund. We are calling on other public office bearers and executives of large companies to make a similar gesture and to further increase the reach of this national effort,” he added. 

Solidarity Fund raises R2.2 billion

Ramaphosa said the Solidarity Fund — which was established to mobilise resources from companies, organisations and individuals to combat the coronavirus pandemic – has so far raised around R2.2 billion. We suppose with the added help of minister salaries, it would do even better.

“It has already allocated around R1 billion to buy sterile gloves, face shields, surgical masks, test kits and ventilators,” said Cyril Ramaphosa. 

Ramaphosa explained that the fund will also allocate funds for humanitarian relief to vulnerable households, in addition to the R400 million set aside by the government for social relief of distress grants.

“All of these efforts, while necessary and commendable, will not be sufficient on their own to cushion the poor from the impact of this pandemic,” said Ramaphosa. 

“Nor will they provide the relief that businesses and their employees require,” he added. 

Ramaphosa explained that additional “extraordinary” measures will need to be put in place in the coming weeks and months to absorb the sudden loss of income to both businesses and individuals — hence the cut in minister salaries.

“An essential part of our response to this emergency is the principle of solidarity.”  

Cyril Ramaphosa.