Continuing economic woes, higher inflation and low confidence levels have led to another monthly decline for salaries in May 2023, according to the latest\u00a0BankservAfrica\u00a0Take-home Pay index (BTPI).<\/p>\n\n\n\n
The average nominal take-home pay slipped marginally in May to R14,457<\/strong>, remaining 2.7% below the level recorded a year ago.<\/p>\n\n\n\n With inflation remaining at elevated levels, the purchasing power of the average salaried worker has flattened. Real take-home pay fell to R13,416 per month<\/strong> in May 2023, or 8.8% lower on a year-on-year basis and the lowest level on record.<\/p>\n\n\n\n According to Shergeran Naidoo,\u00a0BankservAfrica\u2019s Head of Stakeholder Engagements, this has been the result of a “dismal economic environment” in the country – but some evidence of resilience is coming to the fore.<\/p>\n\n\n\n This has come through better-than-expected economic data releases from the mining and manufacturing sectors, he said.<\/p>\n\n\n\n “Both surprised to the upside despite the heavy load-shedding in April, suggesting these industries have become more resilient,” he said.<\/p>\n\n\n\n However, confidence levels in the economy remain at shockingly low levels, hampering the possibility of an economic recovery. <\/p>\n\n\n\n The RMB\/BER Business Confidence Index (BCI) declined for a fifth consecutive quarter to reach the lowest confidence level since 2020. <\/p>\n\n\n\n Similarly, the Absa\/BER Quarterly Manufacturing Survey shows manufacturing business confidence remained unchanged, suggesting more than 80% of respondents are unsatisfied with business conditions.<\/p>\n\n\n\n \u201cAn environment of such low confidence is not conducive for job creation or comfortable wage increases, as confirmed by the BTPI in May,\u201d said independent economist, Elize Kruger.<\/p>\n\n\n\n While the consumer price inflation cycle most likely reached an upper turning point at 7.8% year-on-year in July 2022, the downward trend has been disappointingly slow. <\/p>\n\n\n\n However, April\u2019s headline inflation figure surprised at 6.8% year-on-year, and data from Stats SA on Wednesday (21 June) surprised again with inflation easing further to 6.3% – ahead of forecasts. <\/p>\n\n\n\n BankservAfrica said that the pace of disinflation is likely to accelerate in the months to come.<\/p>\n\n\n\n