* Unions to announce whether to end strike
* Labour action entering fourth week
By Peroshni Govender
JOHANNESBURG, Sept 5 (Reuters) - Unions representing South African state workers are expected to announce on Sunday whether they will accept a government wage offer they previously rejected and end a strike by 1.3 million employees.
Unions have so far turned down the revised 7.5 percent wage increase, which is double inflation, and 800 rand a month for a housing allowance.
"We will make an announcement this afternoon," Sidumo Dlamini, president of South Africa's largest labour federation told Reuters.
Unions representing workers including nurses, teachers, prison guards, court clerks and immigration officials have asked for pay rises of 8.6 percent and 1,000 rand a month for housing.
Union sources said even if a decision to accept the revised offer is announced on Sunday, workers might not return to their posts on Monday.
"It's more likely that it will be business as usual later in the week," said a union official who did not want to be named.
Government officials have said the state has no room in the budget to increase what it has already offered, which would swell state spending by about one percent.
Pay and benefits are the biggest expenditure category in the state budget. In 2006/07, about 35 percent of tax revenue went towards it. That rose to about 47 percent in 2009/10. (Reporting by Peroshni Govender; Editing by Andrew Roche)