Publications
Partners
The latest take-home salary figures show that, on average, South Africans are receiving less pay than they were taking home a year ago.
This is according to the BankservAfrica Take-home Pay Index (BTPI), which reflects the trend in the average take-home pay packet after accounting for the weekly payments and seasonal trends.
These figures are collected from the number of wages that are processed by BankservAfrica via the national payment system and account for about 4 million salaries, reflecting about a quarter of South Africa’s employed people.
Last month, BankserveAfrica released the Five-year Review of Take-home Pay and Private Pensions in SA report, which analysed figures from February 2018 to February this year.
UNDERPERFORMING ECONOMY
BankserveAfrica found that the average salary in the country had “weakened amid the underperforming economy, high unemployment rate, soaring inflation and the impact of the Covid-19 pandemic”.
Over this period, the average nominal salary, measured in the BTPI, increased from R12 573 in February 2018 to R15 438 in February this year.
This showed a growth of 22.8%, according to Shergeran Naidoo, BankservAfrica’s head of stakeholder engagements.
READ: Inflation rate eases after hitting 13-year high in 2022
However, when compared with the 26.6% increase in the Consumer Price Index published by Stats SA, this figure confirmed that the nominal take-home pay lagged behind inflation. Between 2018 and 2021, the nominal take-home pay had kept up with inflation. However, it took a turn for the worse last year.
The nominal average take-home pay stagnated, falling behind the rising cost of living.
The highest average take-home pay was recorded in February last year at R15 760 per month, whereas the lowest average occurred in April 2019 at R12 446 per month. Updated figures from the BTPI show that the average salary has once again fallen.
FURTHER DECLINE IN PAY
The average nominal take-home pay slipped further during April this year to R14 534. This is in comparison with R15 170 a year ago.
According to the report, “the economic narrative remains dismal as companies buckle under the burden of harsh load shedding, high production costs, rising interest rates and moderating demand”.
READ: Lehumo Sejaphala | SA Reserve Bank's superfluous mandate of inflation targeting
Notable currency depreciation in recent weeks, the lack of political and policy certainty, and a general lack of progress to resolve the growing pile of crises in South Africa are pushing confidence levels down – for both households and businesses.
“This is by no means an environment conducive for job creation or comfortable wage increases, but rather one where companies will remain in ‘survival mode’ for an extended period of time,” the BTPI report noted.
