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BankservAfricaBL Premium reports that there were double-digit declines in the number of monthly salary payments made in June as shown by the BankservAfrica Take-home Pay Index (BTPI).  

The index shows trends in salaries, derived from payments made to approximately three-million people (about 36% of SA’s workforce), and indicated a 20.7% decline in monthly payments during June, from a year ago.  But the picture may be worse because the index mainly records payments from large corporates and medium-sized firms, so the decrease might not reflect the full effect of salary declines on small firms.  In a statement on Wednesday, BankservAfrica estimated that a fifth of employees in the private sector might not have received a salary in June 2020.  The hardest hit have been casual workers, which would include people such as waiters and construction workers, according to economist Mike Schüssler.  The data, however, also showed dramatic declines for salaried workers with a 25.6% drop in the total value of salaries paid — suggesting that those in jobs perceived as more secure are also experiencing steep cuts.  Though BankservAfrica cautioned that its salary data cannot be used as a measure of the unemployment rate, it confirmed that “overall employees received reduced salaries compared to a year ago and that fewer employees were paid.”  Though the impact of the lockdown on jobs and income has still to be fully understood, the outlook can be said to be dire.

  • Read the full original of the report in the above regard by Lynley Donnelly at BusinessLive (paywall access only)
  • Read too, Covid-19 places heavy toll on employees’ salaries, on page 6 of The Star of 30 July 2020


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