How a spending review of compensation spending changed government policy in South Africa

This paper examines the influence of compensation spending reviews on government policy by analysing the case of South Africa, focusing on an extended review of the drivers of payroll costs. It addresses the decision by the government to renege on a wage agreement with public sector unions and the subsequent backlash from labour unions, and explains how spending reviews contributed to this. The paper outlines the methodology used for the analysis and summarises the key findings of the compensation spending reviews conducted between 2017 and 2020. It also discusses the implications of the decision and subsequent developments for compensation spending in South Africa.