South Africans are earning more - But how much and why?
More good news for South Africans as the latest BankservAfrica Take-home Pay Index (BTPI) shows that the average salary surpassed the R17,000 mark.
The research said that the upward momentum continued in September 2024, as the average salary surpassed R17,000, the highest level since the index's inception.
The BTPI looks at trends in South African salaries and is derived from the salary payments made to around 3 million people (about 36% of the country’s workforce).
So, what is causing this upward trend? Researchers noted that recent economic developments have given a boost to salary earners and could potentially spill over into the upcoming busy shopping period.
“The average nominal take-home pay reached R17,171 while in real terms, salaries adjusted for inflation tracked higher at R14,969, improving by 5.6% year-on-year,” says Shergeran Naidoo, BankservAfrica’s Head of Stakeholder Engagements.
The improved energy sector and the more than 200 days without load shedding have also played a pivotal role in lowering inflation and helping drive interest rate cuts.
According to Elize Kruger, an independent economist at Carpe Diem Research Services, this has in turn provided a much-needed boost to investor confidence.
Inflation rate dips to lowest level in 3.5 years
On Wednesday, consumer prices in SA plummeted to the lowest level in three-and-a-half years, dipping below 4% year-on-year.
According to data from Statistics South Africa (Stats SA), the annual inflation rate fell for a fourth consecutive month to 3.8% in September, down from 4.4% in August.
This is the lowest inflation print since March 2021, when the rate was 3.2%. On a monthly basis, prices increased by 0.1% between August and September.
Core inflation, which excludes food, non-alcoholic beverages, fuel and energy prices, remained unchanged at 4.1%.
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