CAPE TOWN - Financial services PwC has released its HR report for June 2018, providing commentary on local and international developments in the people and reward arena.
One of the key focuses of the latest report focuses on salary movements and how much South Africans expect their salaries to increase by.
The following rise in costs seen by the PwC over the past nine years:
1. Education has increased on average by 8.3% per annum,
2. Electricity and fuels with a staggering 13.8% per annum and
3. Food by 7.1% per annum.
This shows that South Africans are indeed becoming poorer each year as most salary increases have been CPI plus one or two percentage points in the same corresponding period, PwC said.
According to the PwC, around 560 participants in its REMchannel online salary database reported budgeted increases ranging from 0% to 10% for the next 12 months. Their online database contains more than 520 participating companies and 85% of these include the top 100 companies in South Africa.
The following results on salary increases were shown:
1. 12% of the respondents in the survey reported an increase of less than 5%.
2. Only 3% of respondents indicated that budgeted increases for the next 12 months exceed 6%.
Additionally, The survey found that remuneration is by far the largest component of any organisation’s expenditure.
“Add to that the cost of preparing for the workforce of the future and other related sustainability initiatives, aligning salaries in terms of equal pay for work of equal value and the costs escalates significantly,” it said.
- BUSINESS REPORT ONLINE