Here’s how much salaries are expected to increase in South Africa
PwC has released its HR report for June 2018, providing commentary on local and international developments in the people and reward arena.
One of the key focuses of the latest report focuses on salary movements and how much South Africans expect their salaries to increase by.
“The stark reality is that increases are still dependent on the overall affordability factor,” PwC said.
“The impact of the South African economic climate has resulted in the escalation of many basic consumer products and services far beyond the headline CPI movements.”
It noted that over the the past nine years education has increased on average by 8.3% per annum, electricity and fuels with a staggering 13.8% per annum and food by 7.1% per annum.
This shows that South Africans are indeed becoming poorer each year as most salary increases have been CPI plus one or two percentage points in the same corresponding period, PwC said.
Budgeted increases
PwC found that more than 560 participants in its REMchannel online salary database reported budgeted increases ranging from 0% to 10% for the next 12 months.
The online database contains more than 520 participating companies, and 85% of the top 100 companies in South Africa.
12% of the respondents in the survey reported increases less than 5% whilst only 3% of respondents indicated that budgeted increases for the next 12 months exceed 6%.
The survey found that remuneration is by far the largest component of any organisation’s expenditure.
“Add to that the cost of preparing for the workforce of the future and other related sustainability initiatives, aligning salaries in terms of equal pay for work of equal value and the costs escalates significantly,” it said.
Read: These jobs are in high demand in South Africa right now
Loading ...