Prediction of South Africa’s salary increases for the next year

3D rendered concept of the state of the economic and finance markets in South Africa.

The PricewaterhouseCoopers (PwC) has published a report stating that profits have dropped as well as their share prices are under pressure leading to shareholders having uncertainty. While simultaneously employees are also coming under pressures due to the rise of living costs and low salaries.

The manufacturing, retail sales, infrastructure expenditure, new vehicle sales have all contracted in the economy which isn’t give quite a good outlook for the future. The predicted salary increases for the next 12 months are expected to just over the consumer price index (CPI) which is 5.1% which is expected to average about 6.1% across industry sectors.

This shows that many companies are choose to save rather than invest in salaries increases. PwC set out the minimum and maximum expected total percentages for the next twelve month period – as of October 2018.

Employee category Minimum Maximum
Executives 4.0% 8.0%
Management 4.0% 7.0%
General staff 4.0% 7.0%
Unionised staff 6.0% 7.5%
Total lift to payroll 4.0% 8.0%

 

The Business Unity SA (BUSA) has called out and reached an agreement stating that companies operating in South Africa must publish data regarding the difference in pay between the men and women as well as higher pay employee compared to lower pay employees.

 

Source: businesstech.co.za

 

 

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