The Citizen reports that the monthly BankservAfrica Take-home Pay Index (BTPI) experienced another positive month in February.
“The average nominal take-home pay reached R16,085 in February, 4.6% more than a year ago and 2.5% more than in January when it was R15,692. In real-terms, the monthly take-home pay tracked higher at R14,354 in February 2024, slightly below year-on-year levels,” BankservAfrica’s Shergeran Naidoo indicated. Economist Elize Kruger commented that while it was still early days, the BankservAfrica data signaled that 2024 could be a better year for salaries. “Although mediocre economic growth is forecast for 2024, the economy is expected to perform somewhat better than the 0.6% reflected in 2023. However, this depends on reduced load shedding, a moderation in average inflation and interest rate cuts.” She added that consumers had to remember that the minister of finance did not adjust tax brackets to mitigate the impact of inflation, which essentially meant that a salary increase could easily push salary earners into a higher income tax bracket. A comparison of the average nominal BTPI for the three months to February 2024, with the corresponding three months in 2023 revealed a 6.4% increase, according to Kruger. This is broadly in line with the forecast of the SA Reserve Bank of an average salary increase of 6.1% for 2024. The figure also aligns with the results of a recent pay poll by Andrew Levy & Associates, indicating the majority of companies (58%) anticipated their average increase in respect of salaried staff to be in the region of 5% to 6.9%.
- Read the full original of the report in the above regard by Ina Opperman at The Citizen
- Read too, Average salary in SA rose 2.5% to R16,085 in February, index shows, at Business Report
Get other news reports at the SA Labour News home page