The average nominal take-home pay declined in December, ending the dismal compensation year at a low point, according to the latest BankservAfrica Take-home Pay Index (BTPI).
“At R14 633, the average nominal take-home pay was 4.8% lower than the R15 403 reflected in the previous year,” said Shergeran Naidoo, BankservAfrica’s head of stakeholder engagements.
For 2022 overall, the average nominal take-home pay amounted to R15 055 per month versus R15 166 in 2021, thus moving sideways, Naidoo said.
BankservAfrica said 2022 proved to be an exceptionally challenging year for the economy, with the rising cost of living, higher interest rates and the worst year ever of load shedding, which affected growth. Cumulatively, these headwinds kept a lid on salary increases in a year where consumer inflation reached a 13-year high of 6.9% in 2022 (2009: 7.1%).
Looking at the economic prospects that lie ahead, BankservAfrica said there were many indications that South Africans could expect “more of the same” in 2023 as the main challenges would likely prevail.
Independent economist Elize Kruger said: “The ongoing energy supply problems, in addition to elevated input costs, rising interest rates and increasingly higher wage demands, are placing downward pressure on company profits and margins.
“Furthermore, a less favourable global economic backdrop adds to the economic challenges for many sectors,” she said.
BUSINESS REPORT