Business Report writes that the take-home pay of South Africans for last month declined 0.8% due to salary growth in nominal terms for the period being lower than the month’s inflation rate of 6.3%.
This was according to bank payments clearing house BankservAfrica’s Disposable Salaries Index (BDSI) and Private Pensions Index (BPPI) report released on Wednesday. The month was the ninth consecutive month of declines of salaries in real-terms, but the smallest decline yet. The company indicated that average real disposable salaries reached R13,980 in February, which was the highest since September last year when real seasonally adjusted salaries reached R14,102. Well-known economist Mike Schüssler commented: “The possibility of higher real salary increases in the formal sector might result in some recovery in disposable salaries from April, the time period when civil servants’ inflation adjusted pay increases are realised.” He added that the constant decline in disposable salaries had taken its toll on retail sales, particularly car and home sales.
- Read this report by Kabelo Khumalo in full at Business Report
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