A big payday for outgoing ministers and MPs

With the elections over, outgoing cabinet ministers and Members of Parliament (MPs) will reportedly receive R81 million in out-of-office gratuities.

The Sunday Times reports that 143 MPs and cabinet ministers who will not return to parliament will receive millions for their services.


However, those who have been in parliament since 1994 will receive the highest payouts. Their out-of-office tips will include their pension benefits. Other post-retirement perks, including medical aid and free flights, will be added to their tips.

It will undoubtedly be a big payout to many outgoing members since their loss-of-office tip equates to four months’ pensionable salary for every term concluded by a minister, deputy minister, or MP.

Interestingly, all members who served more than one term in office or more than five years will receive additional gratuity payouts. This will also apply to members whose services started between two elections.

However, the African National Congress (ANC) will lose most of its MPs in parliament. The just-ended elections saw the ANC lose 71 seats, from 230 in 2019 to 159.

The loss undoubtedly saw the ruling party tabling a government of national unity with other parties. On the other hand, Economic Freedom Fighters lost five seats, while VF Plus dropped four seats in the just-ended elections.

Against these results, several outgoing ministers and MPs have confirmed that they will be retiring from active politics. However, notable names that won’t return include Bheki Cele, who served as the Police Minister.

International Relations Minister Naledi Pandor is also on the list of notable ministers who will not return to parliament. Labour Minister Thulas Nxesi is also on the list.

However, there will be a lifeline for some government officials since the President can appoint at least two ministers or deputies from a pool of technocrats outside the National Assembly.


This is how much some ministers will earn, with a big payday on the cards for several outgoing ministers and MPs. The payments are made through the national revenue fund run by the National Treasury.

According to Business Tech, International Relations Minister Naledi Pandor’s payout could amount to at least R5.2 million in loss-of-office compensation when considering her R2.6 million annual salary.

On the other hand, acting Speaker of the National Assembly Lechesa Tsenoli will earn at least R4.4 million. This is reportedly double his current salary of R2.2 million per year.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *