Fin24 reports that real disposable take-home pay shrank for the first time in seven months on a year-on-year (y/y) basis due to higher inflation in September 2017.
This was according to the latest BankservAfrica Disposable Index (BDSI) data, which showed disposable salaries declined by 1.3%. The average real seasonally adjusted banked salary was R13,964 in September 2017. In nominal terms, the take-home salary averaged at R14,255. The current difficult economic conditions in SA are impacting firms and their ability to pay higher salaries. The effective tax rate on gross salaries has also taken a toll. "Wage earners are under severe pressure and have not had effective salary increases over the last four years," states the report. Meantime, real average private pension paid into bank accounts reached R6,701 - the highest level that real average pensions have ever reached. The average constant private pension grew by 2.2% in September, which is the strongest percentage change in four months.
- Read this report in full at Fin24
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