“Take-home pay reflected a high nominal increase of 7.2 percent on a year-on-year basis and reached R16173. This is the first-time average take-home pay reached the R16 000 level,” says Shergeran Naidoo, the head of stakeholder engagements at BankservAfrica.
“In real terms, the BTPI increased by 3 percent year-on-year owing to slightly fewer actual payments, particularly in the lower end of monthly take-home pay. The average real-time payment was R14 300, the third-highest level recorded by BankservAfrica.”
Mike Schüssler, chief economist at economists.co.za, says: “The above-average rises in take-home pay in October were on the back of consumer price inflation (CPI) dropping to its lowest levels in eight years.
“One must remember that many salary adjustments are linked to the CPI. Therefore, lower inflation will probably lead to lower nominal increases over the next year. However, the latest data shows inflation is expected to rise again. Backdated wage increases for civil servants and year-end bonuses were the other reasons for the higher than usual real salary increases.”