The overall salary movement reflected massive increases, followed by substantial declines caused by delayed salary increases by the government. File Photo: IOL

JOHANNESBURG – The latest BankservAfrica Take-home Pay Index (BTPI), released on Wednesday, showed that there was a small decline in the average take-home pay for August on a year-on-year basis. 

The data showed that real take-home pay was at R14 385, a 0.2 percent decline. 

“The decline in the BTPI is due to the late and backdated increases of public servants’ wages last year. As the civil service make up around 30 percent of the BTPI, late salary adjustments and the subsequent backdated increases influence the data somewhat,” said Mike Schüssler, the chief economist at economistscoza. 

“The slight decline is, therefore, overstated, we expect take-home pay to increase ever so slightly in the next few months,” said Schüssler. 

The overall salary movement reflected massive increases, followed by substantial declines caused by delayed salary increases by the government. 

Extended salary negotiations by sectors such as mining or electricity also contributed to these movements. 

However, he said total take-home pay paid to employees still played a significant role in the economy, as evident in the relationship between new passenger car sales and BankservAfrica’s aggregate data for total salaries paid.

BUSINESS REPORT