According to data from BankServ Africa, which processes transactions from banks and other financial entities, take-home salaries have been growing below inflation for the past five years.
This is due to the multiple economic challenges facing the country such as the cumulative impact of low economic growth, the COVID-19 pandemic, load shedding and rising inflation.
The challenging economic environment has also resulted in businesses struggling, with negative consequences on wages and job opportunities.
Independent economist, Elize Kruger says, “The three years from 2020 have already been difficult on businesses and although we’ve got a spike, [starting] of a low base and if you could just sort of listen to company results releases in the last while to know that the current environment is harsh and difficult for businesses and it’s not an environment that’s conducive for job creation for a comfortable salary increases. It’s an environment where companies are in survival mode, trying to keep doors open trying to mitigate load shedding. It’s not an environment that is comfortable for the employees of companies.”
