Monthly take-home pay reflected a slight decline for February, according to BankservAfrica\u2019s latest monthly data.<\/p>\n
The data found that take-home pay averaged at R14,502<\/strong> in February 2018.<\/p>\n \u201cTake-home pay increased marginally by 0.5% in real terms on a year-on-year basis compared to the monthly 1.1% registered for January,\u201d said Shergeran Naidoo, head of stakeholder engagements at BankservAfrica.<\/p>\n Take-home pay was at\u00a0R14,675\u00a0for January 2018.<\/p>\n \u201cIt is evident that the salaries adjusted for inflation resulted in \u2018bracket creep\u2019 into higher personal income tax brackets,\u201d added economist Mike Sch\u00fcssler.<\/p>\n \u201cTherefore, while employees\u2019 earnings seemed to improve with salary increases, in real terms the movement into higher tax brackets resulted in a more muted growth in take-home pay.\u201d<\/p>\n With new taxes and tax laws coming into play from 1 April 2018, South Africans should expect take-home pay numbers to change rather significantly overt the next few months.<\/p>\n The biggest tax change that will affect South Africans across all levels of income is the the VAT hike from 14% to 15%, which will impact everything from shelf prices to everything along the value chain.<\/p>\n Other big tax hikes that are incoming are the fuel levy and Road Accident Fund levy which will also increase by a combine 52 cents, as well as the introduction of the long-awaited sugar tax.<\/p>\n The full effect of these tax changes on take home pay will only become evident in BankservAfrica’s April review, which will be published in May 2018.<\/p>\n
\n