By: The Youth Voice Reporter

National Treasury has identified 4 323 suspicious cases during a ghost worker audit of the government’s PERSAL payroll system, with a nationwide verification process now under way.

The department confirmed that employees who cannot be physically verified will have their salaries withheld and their employment status suspended pending further investigation.

The move forms part of government’s broader efforts to curb wasteful expenditure and tighten payroll controls, as compensation of employees accounts for nearly one-third of consolidated government spending.

Treasury said the verification process is aimed at ensuring that only legitimate employees remain on the state payroll. Departments have been instructed to physically confirm the existence and employment status of individuals flagged by the system.

Failure to comply with verification requirements could result in immediate suspension of salary payments.

The PERSAL system, which manages government payroll, has previously come under scrutiny amid concerns about irregular payments and ghost employees.

In a related cost-containment measure, National Treasury said its Early Retirement Programme  which allows government employees to retire without financial penalties  is expected to generate savings of R2.6 billion in the current financial year.

The savings stem from 7 687 applications approved during the first phase of the programme.

Treasury further confirmed that R3.7 billion has been allocated to departmental baselines to support the Early Retirement Programme over the 2025/26 and 2026/27 financial years.

The dual approach  eliminating ghost workers and encouraging voluntary early retirement  is part of government’s strategy to manage the public sector wage bill while maintaining service delivery.

With employee compensation consuming a significant portion of public funds, Treasury says stricter payroll oversight and structural adjustments are critical to restoring fiscal sustainability.