The DPSA has announced that, in line with PSCBC Resolution7 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 is that the housing allowance will increase from R 1 276 to R 1 336-22 per month. Home-owners will receive the full amount, whereas 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.

Please remember that accumulated savings may be accessed from the savings facility for purposes of acquiring home ownership, building and/or improving a home acquired for ownership.