The average take-home pay in South Africa right now
BankservAfrica has released its Disposable Salary Index for October, showing that the average take-home pay bounced back in the past month after a decline in September – while pensions reached a new high in October.
The BankservAfrica Disposable Salary Index (BDSI) – a measure of real take-home pay – indicates pay cheques to the formal sector employees in South Africa increased by 0.5% after inflation in October.
This follows from the 1.3% decline in September on a year-on-year basis. These indicate the September slump was likely just a deviation from the increasing salary trend.
“With the South African household debt to income ratio declining, along with slightly lower interest rates since July, the South African consumer is recovering slowly as disposable salaries have beat inflation since March this year,” said Mike Schüssler, chief economist at Economists dotcoza.
“September’s decline was probably an anomaly, and the trend of a small increasing real wage should continue, as long as inflation remains around current levels,” he said.
The BDSI real salary was R13,990 for October this year, R16 less than September but R62 more than October 2016. In nominal terms, the BDSI recorded an average of R14,499.
Schüssler said that the looming fuel price shock in December could, however, derail the positive real take-home pay trend, which is currently slightly above inflation. Price shocks from electricity could also have an additional impact.
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