Fin24 reports that take-home pay levels in SA declined dramatically in May and are expected to remain under pressure until July, when adjustments to public sector wages are taken into account.
According to BankservAfrica's latest Take-home Pay Index, the take-home pay data suggests employees have to carry the burden of a shrinking economy. The average gross salary in May 2018 was R14,290 in current terms, while net take-home pay was R10,010. But when the gross salary is adjusted to constant 2016 money - to make comparison easier - it decreased to R13,621, some R290 less than in April 2018. The current typical wage increased by 2.8%, but after taking inflation into account, declined by 1.5%, said Shergeran Naidoo, head of stakeholder engagements at BankservAfrica. "The decline leaves take-home pay in constant terms at the same level as in December 2013," Naidoo observed. BankServAfrica attributed the bleak numbers to the protracted and delayed public sector wage dispute. BankservAfrica's Private Pensions Index (BPPI) for May, however, continued its 15-month consecutive increase trend, bolstering consumer spending in the economy. Privately banked pensions increased by 4.5% in real terms.
- Read this report by Marelise van der Merwe in full at Fin24
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