PwC has published its latest human resource review for the fourth quarter of 2020, showing how South African salaries in the financial sector are expected to change in 2020.
The group said that participants in the salary survey continue to differentiate between executive and unionised staff increases. However, it is evident that the differential is not significant enough to address the real wage gap in South Africa, it said.
“The discussions around a minimum wage versus a living wage continue to be debated quite extensively across all industry sectors, and executive remuneration continues to be reported on widely in the media.”
The below table shows increases granted in the past 12 months:
Not everyone is getting an increase
While the above tables show that respondents are expecting to receive increases above inflation, many professionals believe they may see no year-end bonus or salary increase.
Jack Hammer’s recent Bonus & Salary survey polled a representative sample of senior executives and managers in various sectors – including retail, financial services and manufacturing – about their expectations of bonuses and salary increases, as well as their general sentiment about the country, the economy and their career outlook.
The survey shows that most professionals have taken the realities of the country’s commercial and economic situation on board, with 56% indicating they expected very little in the way of bonuses this year, and 33% expecting no salary increase next year.
These expectations are the lowest they have been in the past four years, Jack Hammer said.
The group said that expectations have steadily dropped since 2016, when those banking on a bonus in line with or above the previous year stood at 77%.
In 2017, the optimists declined to 66% of those polled, to 62% last year. This year, expectations of a bonus equal to or exceeding last year’s have plunged to 44%.
On the salary increase front, expectations were also less than promising and, again, the lowest they have been in the past four years.