This is the average take-home pay in South Africa right now

BankservAfrica has released its latest Disposable Salary Index (BDSI), showing that South Africans are in a better off position, financially, than they were a year ago.

The index showed that slower inflation increases and faster nominal wage growth have helped formal sector wage earners gain higher real increases.

The BDSI movement for real salaries indicates that the trend of shrinking real salaries has changed.

This is due to last year’s higher consumer price inflation, which plays a large role in determining the size of the current increases given by larger employers such as the civil service, BankservAfrica said.

Seasonally adjusted real take home pay averaged R13,894 in June 2017, slightly higher than May’s average of R13,802.

“The real increase of 3.4% in June is the highest for median salaries in 30 months. Despite personal income tax brackets not being fully adjusted for inflation for the last decade and medical insurance payments increases being about 3% higher than inflation, the number of employees taking home over R10,000 per month in nominal terms has increased from 33.8% in January 2012 to 52.6%.”

It therefore appears that take-home pay is increasing faster for lower salary levels, BankservAfrica said.

According to economist, Mike Schüssler, this “changing data” suggests that economic activity wants to pick up.

“This, however, is being crushed by short-term shocks…All these shifts give the impression that the economy is shifting when, in fact, it is not moving at all. It is flat,” he said.

In the longer term, economic transactional activity is likely to be in a state of constant volatility. A retrospective view of the last 42 months show monthly changes on the BETI registered 45.2% in declines, 4.8% showed no change while 50% of the monthly movements showed growth.

“The constant change in direction of the BETI suggests that the economy will remain low to flat in the immediate future. The only constant at present is the uncertainty of both business and consumers,” Schüssler said.

Read: How your boss’ salary is calculated differently to yours

Must Read

Partner Content

Show comments

Trending Now

Follow Us

This is the average take-home pay in South Africa right now