Take-home pay in South Africa has seen a negligible change in March. This spells bad news for households already battling the high cost of living.
The latest BankservAfrica Take-home Pay Index shows the average nominal take-home pay dropped slightly on a monthly basis to just over R15 300.
The index shows salaries measured have been disappointing over the last 12 months, resulting in a notable erosion of the purchasing power of households.
BankServe Africa says more companies are operating under the challenging economic environment of persisting load shedding and higher costs.
It says the recent depreciation in the rand exchange rate and the additional cost of production due to load shedding, as well as related extra expenditure, have added another layer of costs to the economy.
Take-home Pay Index shows the average nominal take-home pay in March declined on a monthly basis to R15 321. And with inflation at high levels, this means household finances are unable to keep up.
“Inflation remained elevated above 7%, food inflation above 14% … not kept up with inflation,” says Independent economist Elize Kruger.
The BankservAfrica data suggests more volatility in lower income categories, indicating companies are opting for more contract or casual workers over permanent positions.
“The business environment is really challenging at this point in time and the ongoing load shedding, the direct and indirect impact companies have to spend money to mitigate…prevail in the next 12 months,” Kruger explains.
The survey also suggests some jobs were created in February and the data for March confirms the fragile recovery in the job market, with about 216 000 more salaries paid.
