South Africans’ take-home pay in 2022 down by almost 5%


The typical take-home pay for 2022 didn’t improve in 2022, however as an alternative moved sideways, with the common for 2022 at R15 055 per 30 days in comparison with R15 166 in 2021. It was a reasonably dismal yr for individuals who earn a wage, with the common reducing by nearly 5% to R14 633 in December. In line with the newest BankservAfrica Take-home Pay Index (BTPI), the common nominal take-home pay was 4.8% decrease than the R15 403 of 2021. “2022 was an exceptionally difficult yr for the financial system, with the rising value of dwelling, larger rates of interest and the worst yr ever…

The typical take-home pay for 2022 didn’t improve in 2022, however as an alternative moved sideways, with the common for 2022 at R15 055 per 30 days in comparison with R15 166 in 2021. It was a reasonably dismal yr for individuals who earn a wage, with the common reducing by nearly 5% to R14 633 in December.

In line with the newest BankservAfrica Take-home Pay Index (BTPI), the common nominal take-home pay was 4.8% decrease than the R15 403 of 2021.

“2022 was an exceptionally difficult yr for the financial system, with the rising value of dwelling, larger rates of interest and the worst yr ever of load shedding, which affected development. Cumulatively, these headwinds stored a lid on wage will increase in a yr the place client inflation reached a 13-year excessive of 6.9% in 2022,” says Shergeran Naidoo, BankservAfrica’s head of stakeholder engagements.

These figures are in keeping with a latest report of the South African Reserve Financial institution (Sarb) that development of salaries within the personal sector remained unchanged at 5.7% in comparison with 2021, as the common wage settlement fee in collective bargaining agreements got here to six% within the first 9 months of 2022.

Naidoo says this proves that nominal wage will increase lagged on precise inflation traits throughout 2022 and, due to this fact, much more so in actual phrases, which is confirmed by BankservAfrica’s information that mirrored a 6.9% decline in the true common wage recorded in 2022 in comparison with 2021.

“This created a notable erosion of South Africans’ buying energy, a pattern that filtered via to family’s lacklustre consumption expenditure in 2022,” says Elize Kruger, an unbiased economist.

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Extra funds, however for lower-end jobs

Regardless of these situations employment ranges have elevated, catching up job losses incurred through the Covid-19 pandemic and BankservAfrica’s information means that 1.072 million extra salaries had been paid into South Africans’ financial institution accounts in 2022 in comparison with the earlier yr.

StatsSA’s newest Labour Drive Survey confirmed this optimistic pattern in employment and indicated that 1.22 million job alternatives had been created within the first three quarters of 2022, though that is nonetheless not again at pre-Covid ranges.

The info reveals that 204 075 extra salaries had been paid in December 2022, however December’s information means that though extra folks had been working, new jobs had been seemingly created within the decrease earnings classes, akin to alternatives for short-term and seasonal staff through the festive season. “Nonetheless, any earnings stays much better than no earnings,” Kruger says.

Sadly, 2023 doesn’t look good both if you wish to earn extra. Trying on the financial prospects for the yr, Kruger says there are lots of indications that we might count on ‘extra of the identical’ in 2023, as the primary challenges will seemingly proceed.

“The continued power provide issues, along with elevated enter prices, rising rates of interest and more and more larger wage calls for are putting downward stress on firm earnings and margins. Moreover, a much less beneficial world financial backdrop provides to the financial challenges for a lot of sectors,” says Kruger.

Nevertheless, she factors out that there’s one silver lining: the expectation that client inflation ought to average to a median of round 5.5% in comparison with 6.9% in 2022, supporting customers’ buying energy within the coming months.

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At the least Personal Pensions Index elevated

One other optimistic facet is that the info reveals that non-public pensions held up nicely regardless of larger inflation. The BankservAfrica Personal Pensions Index (BPPI) rose to R10 016 in December, displaying a 7.2% year-on-year development, based on Naidoo.

“The typical nominal BPPI in 2022 got here to R9 982, additionally 7.2% up on the 2021 common. In actual phrases, the common actual personal pension in 2022 was R9 576, 0.3% larger than a yr earlier, which preserves the buying energy of pensioners.”

The BTPI is calculated month-to-month by dividing the overall worth of salaries paid into the financial institution accounts of workers (excluding salaries over R100 000 per 30 days) by the overall variety of wage funds. Wage funds loaded onto the Nationwide Fee System (NPS) and paid by an EFT message that will get processed by the BankServ methods are measured.

These take-home funds exclude UIF contributions, private earnings tax and worker pension funds. The BTPI displays the pattern in nearly 4 million month-to-month wage funds, which represents about 37% of all non-farm workers or formal sector within the South African labour market.