BusinessTech reports that according to the latest BankservAfrica Take-home Pay Index, take-home pay in SA increased above inflation in July 2019, thereby providing a slight boost to household spending.  

It increased by 0.9% in real terms year-on-year, while in nominal terms it increased 5.3%.  Although the increases were still relatively low in July, household expenditure was given a boost through a lower inflation environment, the group indicated.  The average real take-home pay was R14,177 compared to R14,049 in July 2018.  Nominal take-home pay improved by 5.3% year-on-year to reach R15,584.  Overall, total payments in nominal terms increased by 6.5% in July, indicating overall salary payments were still in a recovery phase.  “Growth has been off a low base from July 2018 when government salary increases were a little delayed in some cases,” BankservAfrica said.  This suggested that if inflation remained subdued, positive increases in take-home pay could be expected in the next few months, said economist Mike Schüssler.  According to Schüssler, the increase in July was slower than June and May, but offered a more realistic trend, as wages carried over from May to June to officials for the national elections were now out of the system.

• Read the full original of the above report at BusinessTech

Get other news reports at the SA Labour News home page