South Africans continue to grow poorer, salary index shows
After taking inflation into account, the average South African salary declined by 2.4% in June from the same month in 2017.
The average take-home pay for formally employed South Africans paid via the national payment system was R14,302 in June in current prices, reduced to R13,593 after stripping out inflation, a monthly report by interbank payment service BankservAfrica said on Tuesday.
"Real take-home pay for June experienced its largest decline since early 2017 owing to rising inflation and the delay of annual salary adjustments and back-pay in the public sector, the leading employer in SA," BankservAfrica said.
In current prices, salaries grew 2% over the year while inflation was 4.6%, effectively leaving South Africans 2.4% poorer.
"The real take-home pay collapse in June is due to the three-month delay in annual salary adjustments of the public sector," Economists.co.za chief economist Mike Schüssler said.
The public sector makes up about 30% of the BankservAfrica take-home pay index, and public sector wage increases backdated to April were only paid in July — so will only appear in next month’s report.