The long-standing wage dispute between the National Education, Health and Allied Workers’ Union (Nehawu) and the National Student Financial Aid Scheme (Nsfas) has finally reached a resolution. After a seven-month negotiation period marked by strikes and tensions, an agreement was signed on November 5, 2025, promising to enhance the working conditions for employees and restore stability.

According to Nehawu, the recent negotiation round proved challenging. Key sticking points, such as decentralisation of offices to Pretoria, job evaluations, housing allowance, insourcing of contractors, long service awards, and salary progression, prolonged the mediation process, despite parties being close to an agreement on these issues.

The following agreement has been reached with Nsfas:

1. Salary adjustment of 7% across the board for all employees within the Nsfas Bargaining Unit (i.e. Level 3 – 12), effective from April 1, 2025;
2. Housing Allowance to be increased by 83.3% which amounts to an increase of R1,000. This shall mean an increase from R1,200 to R2,200, with R1,793 of this effective from April 1, 2025, whilst R227 shall be effective from April 1, 2026;
3. Once-off long service awards.

Additionally, the parties also agreed to postpone these matters for further discussions at the National Bargaining Forum and the National Consultative Forum: 

• Staff dependent bursary (progress update on policy);
• Early retirement (progress update on policy);
• Hybrid working policy (progress update on policy);
• Threshold for recognition of new unions;
• Decentralisation (new consultation to ensure workers are not worse off by any movement if it is agreed on); and
• Implementation date for job evaluation outcomes upon concurrence being granted.

Nehawu Western Cape provincial secretary Baxolise Mali said Nehawu, appreciates the loyalty and patience of its members during the negotiations. 

“We equally want to recognise the DHET team, Nsfas Board, and the Nsfas management for finally appreciating that improvement of conditions of service of workers is a top priority if Nsfas has to meet its obligations. This realisation has led to us agreeing on resetting our relationship with Nsfas management, which we can confirm that it is moving towards the right direction, ensuring an environment of sound labour relations at the workplace,” Mali said. 

According to Nsfas, while the negotiations have been protracted, resulting in an industrial action, they laid the ground for expectations between workers and management. 

Nsfas employees are essential to the organisation’s operational success. They are directly involved in student funding, handling applications, appeals, case management, and disbursements, and serving higher education institutions. They represent the most crucial element of the operational framework, Nsfas said. 

“The conclusion of the negotiations allows all parties to focus on a successful end to the 2025 academic year and the focus on a good start to the 2026 academic year,” Nsfas said. 

“Nsfas looks forward to an enhanced working relationship focused on the principles of service to students, trust, good faith and a conducive working environment.”

thobeka.ngema@inl.co.za

Source link