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Public Service Act, 1994 (Act No. 103 of 1994)

Chapter VIII : Miscellaneous

38. Wrongly granted remuneration


(a) If an incorrect salary, salary level, salary scale or reward is awarded to an employee, the relevant executive authority shall correct it with effect from the date on which it commenced.
(b) Paragraph (a) shall apply notwithstanding the fact that the employee concerned was unaware that an error had been made in the case where the correction amounts to a reduction of his or her salary.

[Section 38(1) substituted by section 34(a) of Act No. 30 of 2007]


(2) If an employee contemplated in subsection (1) has in respect of his or her salary, including any portion of any allowance or other remuneration or any other benefit calculated on his or her basic salary or salary scale or awarded to him or her by reason of his or her basic salary—
(a) been underpaid, an amount equal to the amount of the underpayment shall be paid to him or her, and that other benefit which he or she did not receive, shall be awarded to him or her as from a current date; or
(b) been overpaid or received any such other benefit not due to him or her—
(i) an amount equal to the amount of the overpayment shall be recovered from him or her by way of the deduction from his or her salary of such instalments as the relevant accounting officer may determine if he or she is in the service of the State, or, if he or she is not so in service, by way of deduction from any moneys owing to him or her by the State, or by way of legal proceedings, or partly in the former manner and partly in the latter manner;

[Section 38(2)(b)(i) substituted by section 34(c) of Act No. 30 of 2007]

(ii) that other benefit shall be discontinued or withdrawn as from a current date, but the employee concerned shall have the right to be compensated by the State for any patrimonial loss which he or she has suffered or will suffer as a result of that discontinuation or withdrawal.

[Section 38(2) amended by section 34(b) of Act No. 30 of 2007]


(3) The accounting officer of the relevant department may remit the amount of an overpayment to be recovered in terms of subsection (2)(b) in whole or in part.

[Section 38(3) substituted by section 34(d) of Act No. 30 of 2007]