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For many, today is payday, so congrats, you’ve made it through another month.
The dependable monthly salary is the aspiration of freelancers nationwide. It’s also a luxury that a large percentage of the country doesn’t have.
Still, South African payments provider BankservAfrica’s latest Take-home Pay Index says that the average take-home salary in South Africa, on a monthly basis, is improving to some degree.
According to the Index, the average monthly take-home pay increased to R15 821 in February 2021. However, in real terms, the average take-home pay, as measured by BankservAfrica, was slightly upwards of R13 000.
That means that the average take-home pay increased by 1,6% above the rate of inflation.
“The low inflation rate together with the better performing economy in February certainly contributed to this,” BankservAfrica said.
While this ‘good’ news is welcomed, not all of the increases for average wages were due to actual wage increases. Instead, this is due to the fewer number of daily and weekly paid employees in the system and their decline in the overall BTPI data.
The average decline of the monthly equivalent of daily wage earners was -10,6%, while monthly paid workers decreased by -2,8%. This amounts to a far lower share of daily paid employees in the system.
The table below summarises the data:
You’ll find a larger version of the above here.
The hope is that the increase in take-home pay will contribute to more positive consumer spending, which in turn helps to boost the economy.
[source:bankservafrica]
