Today's Labour News

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earningsMoneyweb reports that, despite a consumer price inflation rate of 7%, the BankservAfrica Disposable Salary Index (BDSI) shows that take-home pay increased in February by 9.1%, revealing a 2.1% real increase year-on-year.  

Pensioners, however, only just beat inflation, with the BankservAfrica Private Pension Index (BPPI) showing pensions were only up 7.8% in February.  BankservAfrica said on Wednesday that it was unlikely that pensions would continue to outperform inflation, “particularly when considering that general equity market returns are barely outperforming inflation and interest rates are also just above inflation.”  On the other hand, salary increases have consistently outperformed inflation over the past 18 months, barring two months when increases were delayed due to drawn-out wage negotiations.  Economist Mike Schüssler said he was surprised at the data, particularly the salary increases, which he thought would be slowing during the difficult economic environment.  “People on salaries don’t realise how well they’re doing,” said Schüssler.

  • Read this report by Sungula Nkabinde in full at Moneyweb
  • See too, Take-home wages defy low economic outlook, at The New Age


Get other news reports at the SA Labour News home page