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BL Premium reports that the latest BankservAfrica report released this week shows how the challenging economic environment in SA has negatively affected salaries since 2018.
According to the five-year take-home pay report, the average salary in SA has weakened as a result of the underperforming economy, high unemployment rate, soaring inflation and the effect of the Covid-19 pandemic. The report shows that average nominal salary grew from R12,573 in February 2018 to R15,438 in February 2023, showing growth of 22.8%. “In contrast the consumer price index (CPI) increased by 26.6% over the same period, confirming that nominal take-home pay has lagged on developments in inflation,” BankservAfrica’s Shergeran Naidoo indicated. Even though the nominal take-home pay kept up with inflation between 2018 and 2021, the trend took a turn for the worse in 2022. Economist Elize Kruger, who compiled the report, stated: “Nominal average take-home pay stagnated, falling behind the rising cost of living.” She added that companies have indicated a shift from potential expansion and investment to becoming less dependent on Eskom, and have redirected capital earmarked for investment towards self-sufficiency. “This conservative survival approach is not conducive to employment growth in SA, and also keeps a lid on salary increases,” she pointed out.
- Read the full original of the report in the above regard by Thuletho Zwane at BusinessLive (subscriber access only)
- Read too, South African real salaries declined in the past five years, at News24
- En ook, Salarisse hou nie meer by met inflasie, by Maroela Media
Get other news reports at the SA Labour News home page