BankservAfrica said that given the number of salaries paid into the bank account of South Africans that its data captures, it is an early indicator of the state of the employment market.
SA has already seen the number of employed people increase by 258 000 to 16.2 million in the first quarter of 2023, compared to the fourth quarter of 2022. Although the increase was partly attributable to a growing workforce, theBankservAfrica believes that with a lower economic growth forecast for 2023 compared to 2022, the job market will be even bleaker, leaving very little room for salary improvements.
"Therefore, expect the nominal take-home pay to continue lagging on inflation in the months to come… Until the economic narrative could meaningfully change, expect more of the same in the medium term," said Kruger. The performance of salaries was so dismal in the past five years that even though pension payments are lower than average salaries in SA, it was better to be a pensioner because their financial situation didn't deteriorate.
BankservAfrica Private Pensions Index showed that private pension payments rose from R7 001 in February 2018 to R10 054 in February 2023, reflecting a 43.6% increase. The highest average nominal pension payment was recorded in July 2022 at R10 483 per month. Kruger said investment performance may have contributed to the growth. In times of uncertainty you need journalism you can trust.