“While March 2018\u2019s improvement cannot be described as exceptional – due to the increase being rather slow and dependant on lower inflation – the fact is that South Africans employed in the formal sector are better off with real take-home pay increasing by 0.9% year-on-year in March 2018,” BankservAfrica said.<\/p>\n
“The average salary is edging up with the typical \u2013 or median \u2013 salary faring a little better and increasing by 2.2% since March 2017 above the rate of inflation.<\/p>\n
“Salary increases for employees in the middle of the income distribution shows the impact of effective tax increases on higher income earners per year as the average take-home pay has shown lower increases than the typical take-home pay. In the past year, typical take-home pay has increased by 0.8% more than the average,” it said.<\/p>\n
BankservAfrica added that March is usually \u2018performance bonus month\u2019 and follows on from December\u2019s year-end 13th cheque pay-outs.<\/p>\n
It noted that the proportion of employees receiving between R50,000 – R100,000 increased to 2.5% of the total in March compared to 2.1% in March 2017.<\/p>\n
“In addition, this is the first time since December 2017 that the number of people taking pay home in this range were over 75,000 employees out of over 3 million employees. The number of employees receiving between R50,000 – R100,000 increased by 17.1% since March 2017,” it said.<\/p>\n
At the same time those earning\u00a0less than R4,000 decreased by 6.8% over the same period, BankservAfrica found.<\/p>\n
“In March 2018, employees with take-home pay of over R25,000 per month were more than those earning under R4,000. Therefore, take-home pay for those earning between R4 000 – R25 000 was still the dominant category at 44.9% (other than in December, which is the highest bonus pay-out month),” it said.<\/p>\n
“Over 55% of employees paid via the South African National Payment System received a take-home pay of over R10 000.<\/p>\n
This does, however, represent a bias to larger employers and excludes those who receive actual cash. The growth in those receiving more than R10,000 in their bank account has been close to 9% on average over the last year,” it said.<\/p>\n
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