The DPSA has announced that, in line with PSCBC Resolution 7 of 2015, the housing allowance for qualifying employees will increase on 1 July 2018 by 4,7%, which is the average CPI for the past financial year.

The effect of the adjustment with effect from 1 July 2018, is as follows:

  • the housing allowance, for home owners, will increase from R 1 276.00 to R 1 336.22 per month;
  • employees who rent will continue receiving R 900 per month as part of the salary, whilst an amount of R 436.22 per month (i.e. the difference between R 1336.22 and R900) will be diverted to the employee’s individual-linked savings facility in the Government Employees Housing Scheme.