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22 October 2007: No 60/07

RENT PAYABLE BY DOD MEMBERS PAYING 1% OF THEIR BASIC SALARY TO OCCUPY STATE HOUSING: “VOETSTOOTS” SINGLE ACCOMMODATION (COMPOUNDS) BACKGROUND

Public Service Co-ordinating Bargaining Council (PSCBC) Resolution 3/1999 in part 17, State and Other Housing, paragraph 5.1 (b) stipulates that members utilizing single housing should pay 1% of their basic salary for the housing. (This excludes Boarding and Lodging payable by members and officials).

PSCBC Resolution 2/2004 in Part 17, Macro Benefits, 7.1, Housing Allowance, 7.1.8 states “ the rental payable by employees occupying state housing, as required by the employer, shall, with effect from 1 January 2005, be equal to the greater of either the housing allowance, as part of the phasing-in period referred to in clause 7.1.5, or the applicable amount payable in terms of Annexure B to PSCBC Resolution 3/1999, ie the rental amount will be equal to the housing allowance.

This was also applied to the members who are paying according to PSCBC Resolution 1 of 2007 and the subsequent DPSA Circular No 1 of 2007 on the Improvement of Conditions of Service: 2007/08 and 2008/09 financial years include amendments to the housing allowance with effect from 1 July 2007.

The housing allowance is to be increased to R500.00 pm. The rental payable in respect of State Housing is also increased to equal the housing allowance, namely R500.00 pm as from 1 July 2007, translated to be 1% of the basic salary of all who occupy single accommodation, ”voetstoots”.

CURRENT SITUATION

There have been a number of enquiries regarding the increase of the rental for the members staying in “voetstoots” single accommodation (compounds) and the Directorate Human Resources Service Systems (DHRSS) and the Directorate Collective Mechanisms Labour Relations (DCM LR) have been made aware of these.

The Directorates considered the position of the specific members and accordingly concluded on the following decisions:

• to reverse the decision and increase members rental from 1 July 2007 to R500.00 pm and to reinstate member’s rental to equal 1% of basic salary from 1 July 2007.
• to withdraw the housing allowance paid to members, for the state (compound) accommodation.

The net result is that their October 2007 salary advice will reflect the changes made by this decision.

The R500.00 pm rent and housing allowance is withdrawn, backdated from 1 July 2007 and the rental payable at 1% of basic salary deducted from 1 July 2007. Any tax implications have also been corrected.

Members are also encouraged to apply for the housing allowance for homes registered in their names even though occupied by families in the rural areas. This could be done by means of Permission to Occupy’ certificate or any other proof of ownership by the member.

Officers Commanding, Officers-in-Charge and HR Managers are requested to explain this decision to the affected employees and to ensure that they understand the financial implications and their responsibility.

Members should be encouraged to apply for housing allowance for homes other than state quarters to ensure that they get maximum benefits of the housing allowance within the existing prescripts of the law.

If any group that utilizes this form of accommodation is dissatisfied with this ruling it is recommended that they submit a collective grievance via the channel of command to their Labour Relations Service office.

Enquiries should be directed via the normal channels of command to Mr M.P. Kgwedi, tel: (012) 355-6260 or Lt Col C.F. Thomas, tel: (012) 355 5897.