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<\/a><\/figure><\/div>\n\n\nThe business environment has improved since there has been no load shedding for nearly two months, allowing organisations to increase productivity and lower the cost of production. <\/p>\n\n\n\n
A better business environment will help companies pay inflation-related salary increases in 2024. <\/p>\n\n\n\n
Year to date, BankservAfrica’s data aligns with the South African Reserve Bank\u2019s projection of an average salary increase of 6.1% for 2024. <\/p>\n\n\n\n
With inflation expected to average around 5.1% in 2024, there is a forecast real increase of 1.0% in average wages, which is good news for economic activity this year. <\/p>\n\n\n\n
132,000 more salaries were also paid in April 2024 compared to March. <\/p>\n\n\n\n
“With South Africa\u2019s unemployment rate at around 33%, any improvement in the job market\u00a0is welcomed,” said BankservAfrica.<\/p>\n\n\n\n
“The elections on 29 May could give rise to a notable increase in casual workers, typically paid on a weekly basis. In three of the past four elections, the estimated number of people receiving weekly salaries during the election month increased by around 48,000 \u2013 65,000.” <\/p>\n\n\n
<\/a><\/figure><\/div>\n\n\nThe BankservAfrica Private Pensions Index (BPPI), which tracks the pension payments to about 700,000 pensioners, also remained comfortably above year-ago levels in April despite a month-on-month drop. <\/p>\n\n\n\n
\u201cThe average nominal private pension moderated to R10 639 in April 2024 compared to the previous month\u2019s R10\u00a0745, still 6.6% higher than a year earlier,” said Naidoo.<\/p>\n\n\n\n
“Similarly, in real terms, the average BankservAfrica BPPI increased by 1.2% in April 2024, compared to a year earlier, sustaining its ongoing track record to beat inflation.” <\/p>\n\n\n\n
The data shows that the purchasing power of pensioners, primarily former government officials, has been preserved despite the elevated inflation environment. With R8 billion paid to pensions in April, this category’s financial well-being is important to the economy. <\/p>\n\n\n\n
The cumulative value of total take-home pay and private pension payments processed indicates the economy’s overall spending ability, which increased by 5.3% in nominal terms. However, on a non-seasonally adjusted and smoothed basis, it did slip marginally in real terms compared to a year earlier.\u00a0<\/p>\n\n\n\n
\u201cOverall, although mediocre economic growth of 1.1%\u00a0is forecast\u00a0for 2024, it will be somewhat better than the 0.6% reflected in the previous year and influenced by notably less load shedding, moderating average inflation, and the anticipated start to the interest rate cutting cycle later this year, albeit an expected measured cutting cycle,\u201d said Kruger.\u00a0<\/p>\n\n\n