Today's Labour News

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earningsCity Press reports that early indications suggest that salaried employees may be better off this year, but with persistent inflation, high taxes and high interest rates, consumers are not yet in calm waters.

According to Yolanda Sedlmaier, compensation specialist and member of the SA Reward Association (SARA), market data indicates salary increases could be between 5% and 7% this year, while the Reserve Bank's latest forecast for inflation in 2024 stands at 5.1%. She commented: “Market data suggests that managers could receive increases around 5% and union members closer to 7%. This looks better than last year, where the Reserve Bank estimated the average salary increases at just 3.9%, while inflation for 2023 stands at about 6%.” BankServAfrica's net salaries index showed the average salary was 2.5% higher in February than in January, which was the third month that average salaries had increased. Economist Elize Kruger said the average nominal index of the money salaried employees took home was 6.4% higher in the three months to February than in the corresponding three months a year earlier. This was in line with a survey by Andrew Levy & Associates, in which 58% of companies indicated they expected to grant salary increases of an average of 5% to 6.9%. "If salaries increase by about 6%, 2024 could be a year of positive real increases in average salaries, and salaried employees' purchasing power will improve compared to the previous two years," Kruger pointed out. However, bracket creep, in which people at the top of a particular tax bracket may end up in the next bracket after a salary increase, could mean they pay more tax.

  • Read the full original of the report in the above regard by Riana de Lange at City Press (subscriber access only)

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