TABJ July 28 - As many as 900,000 South African public sector workers are set to strike in an effort to push for higher wages.

Last week, state workers, including nurses, teachers, police, customs officials and immigration officers, rejected a 6.5 per cent wage increase, demanding an 8.6 per cent increase plus a monthly housing allowance.

According to official data, the salary demands are more than double South Africa's rate of inflation, about 4.2 per cent last month. The workers union says they would serve formal notice of their plan to strike, giving the South African government seven days to improve its offer.

Workers at state power utility Eskom won a nine per cent pay increase early this month after threatening to strike. Transport sector workers won a similar settlement in May after a three week strike that cost nearly $1 billion in lost production.