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BankservAfricaFin24 reports that backdated salary payments in the public sector in August continued to spur the increase in BankservAfrica’s (BSA’s) Take-home Pay Index.  

Real salaries showed improvements on both an annual and a monthly basis, BSA announced on Wednesday.  Shergeran Naidoo, head of stakeholder engagements at BSA, indicated that average South African take-home salaries increased by 4.7% in real terms on a yearly basis.  This represented the largest annual percentage increase in the BSA dataset since 2012.  “In August, we saw the monthly average real take-home pay reach R14,460 in real terms,” he added.  August’s figure was 2.7% higher on a seasonally adjusted basis than July’s.  However, Naidoo said he expected the rate of increase to slow from the current, very high rate.  The take-home pay of the "typical person" - that is the person in the middle of the earnings distribution - showed an increase of 1.6% after inflation.  In real terms, the real average take-home pay was up by 4.4% since August 2013.  Well-known economist Mike Schüssler observed that the rate of take-home pay increase was likely to stay higher than usual as other wage settlements were still expected in the coming months from large sectors with many employees such as mining.  Real average private pensions (excluding old age grants and social pensions) increased by 4.2%, showing its slowest recent y/y increase.

  • Read this report by Carin Smith in full at Fin24

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