17/10/2020
SOUTH AFRICANS ARE GETTING POORER
Even though people’s salaries in South Africa are increasing on average, data from the BankservAfrica Take-home Pay Index (BTPI) indicate that the increases are being outpaced by inflation.
While this suggests that, in real terms, South African residents are getting poorer over time, the findings of the BTPI are at odds with the official figures from Stats SA.
Stats SA publishes Quarterly Employment Statistics (QES), which tracks the total number of people employed in South Africa’s formal non-agricultural business sector along with their total earnings.
It also tracks the Consumer Price Index in South Africa, with average inflation pegged at below 5% in 2018 and 2019.
After adjusting Stats SA’s quarterly salary data for inflation, the resulting chart shows that although salary growth is slowing, the average salary in South Africa’s formal non-agricultural business sector is still trending upwards in real terms.
When South Africa’s official inflation figures are applied to the Bankserv Africa Take-home Pay Index, however, it shows that people’s real average monthly salaries are on a downward trend.
To get an alternative perspective from Stats SA’s official figures, MyBroadband attempted to collate all of the available BTPI data, which dates back to 2011.
However, it became apparent that as the index has been refined over the years, Bankserv Africa’s previously published salary data is no longer comparable to its latest take-home pay reports.
MyBroadband contacted BankservAfrica and Economists.co.za and requested a copy of its recalculated take-home pay index. The chart below is based on this updated data.
Salaries in South Africa vs inflation — Stats SA Quarterly Employment Statistics: 2009–2020 The official inflation rate of South Africa is calculated based on the price of consumer goods in December 2016.
Salaries in South Africa vs inflation — Bankserv Africa Take-home Pay Index (BTPI): 2012–2020 According to BankservAfrica
