{"id":860400,"date":"2026-05-14T11:49:10","date_gmt":"2026-05-14T09:49:10","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=860400"},"modified":"2026-05-14T11:49:13","modified_gmt":"2026-05-14T09:49:13","slug":"major-shift-for-anyone-earning-a-salary-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/860400\/major-shift-for-anyone-earning-a-salary-in-south-africa\/","title":{"rendered":"Major shift for anyone earning a salary in South Africa"},"content":{"rendered":"\n
New data from Old Mutual shows that, while employers are still funding above-inflation salary increases in South Africa, they’re tightening benefits, shifting to performance-based support.<\/p>\n\n\n\n
According to the group’s latest Remchannel Bi-Annual Salary and Wage Movements Survey, South African salary increases in 2026 have averaged around 5.43%.<\/p>\n\n\n\n
This is far higher than the headline inflation rate of around 3% at the start of the year, and remains above the looming medium-term spike to above 4% due to the fallout from the Iran War.<\/p>\n\n\n\n
However, despite the above-inflation hikes, the survey showed that employees remain under financial pressure, with the economic turn in the latter half of 2025 not undoing the strain over the previous years.<\/p>\n\n\n\n
Combined with the group’s benefit surveys and Two-Pot withdrawal data, the group said a more complex picture is emerging, including a clear shift from employers.<\/p>\n\n\n\n
“Employees remain under financial pressure, while some forms of workplace support are becoming more selective,” it said.<\/p>\n\n\n\n
“This comes as employers struggle to balance rising costs with the necessity of staying competitive.”<\/p>\n\n\n\n
One of the more significant shifts emerging in the data is that employees are experiencing a trade-off between above-inflation salaries and employer rewards and support.<\/p>\n\n\n\n
Companies are still funding increases, Old Mutual said, but benefits are becoming more selective and scaled back.<\/p>\n\n\n\n
This means fewer “soft loans”, cash advances, sign-on bonuses, or even cutting back on fully-paid maternity leave.<\/p>\n\n\n\n
Instead, employers are opting for more targeted forms of support, with a shift towards more performance-oriented reward design<\/strong>, Old Mutual said.<\/p>\n\n\n\n
The impact on employees is also apparent, with the tension seen in continued withdrawals from retirement savings under the two-pot system.<\/p>\n\n\n\n
This is happening despite real growth from salary increases.<\/p>\n\n\n\n
Old Mutual Corporate\u2019s latest Two-Pot withdrawal survey shows that March 2026 claims returned to near inception-level volumes, with about 100,000 claims recorded by month-end. <\/p>\n\n\n\n
The group noted that the reasons for withdrawals underline the strain employees are under.<\/p>\n\n\n\n
Among lower-income members, basic living needs alone accounted for 45% of withdrawals, it noted, while across all income bands the leading reasons were essentials, emergencies and debt. <\/p>\n\n\n\n
\u201cThat pattern shows how deeply financial pressure is embedded in employees\u2019 day-to-day lives,\u201d the group said. <\/p>\n\n\n\n
\u201cFor employers, the question is whether pay, benefits and wider support are aligned to where employees are feeling the most strain.”<\/p>\n\n\n\n
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