The table below illustrates the real increases granted by South African companies over the last 17 years: We are less optimistic, and our model is currently predicting -7.70% in 2020 and a meagre 2.4% in 2021. Business for South Africa recently stated that, Against our latest modelling scenarios, we expect that it will take a minimum of two years for the South African economy to recover to pre-Covid 19 levels, keeping in mind that South Africas economy was already weak at the start of 2020. GDP refers Salaries range from 7,880 ZAR (lowest average) to 139,000 ZAR (highest average, actual maximum salary is higher).. Salary increases for 2021 and 2022 Salary increases by performance level in 2021 and 2022 Distribution of employees by performance level in 2021 and 2022; Mid-year voluntary attrition for 2021 Edition 4. Consumer prices rose 0.34% in January over the previous month, picking up from the 0.17% increase recorded in December and marking the sharpest increase in prices since July 2020. Staff Writer 10 December 2020 South African private-sector workers are set to receive an average pay rise of 5% in 2021, which is a cautious improvement The table below details South Africas historic inflation rate (in black) and Axiomatics forecast of future inflation (in red): Our inflation forecast of 4.3% for 2021 is aligned with the Monetary Policy Committee who stated at their latest meeting that they expect inflation to average 4.3% in 2021. More detailed information on the tax system is available here. Salaries range from 4,860 ZAR (lowest) to 14,300 ZAR (highest).. The average forecast salary increases for these countries are similar to the low levels experienced in 2020. Join the conversation on Twitter #Budget2021 They are required to be a strategy swami, a finance guru, an operations rock star, an incentive ninja and a general behavioural psychologist Jedi. This year almost four in ten (38%) businesses froze their pay increases, but this is forecast to fall to one in eight (12%) firms in 2021. This page provides - South Africa Minimum Wages- actual values, historical data, forecast, chart, statistics, economic calendar Survey deadline: Friday, October 29, 2021 Report release: Mid December. Therefore, do not expect the average salary mentioned in 2019 to be the same as that of 2021. A person working as a CAD Drafter in South Africa typically earns around 17,200 ZAR per month. This assertion is corroborated by the 5-year moving average in the graph above, which has been steadily declining in recent years to 1.3% and the 15 year moving average of 1.1%. All salary increase tables and graphics are shaded blue. According to the Quarterly Labour Force Survey (QLFS), there was an increase of 333 000 in the number of employed persons, an increase of 701 000 in the number of unemployed persons and a decrease of 890 000 in the number of people who are out of the labour force, in the 4th quarter of 2020 compared The result of the above factors is that the economy will struggle for the foreseeable future and from an affordability perspective, most companies will not be in a financial position to grant a real increase of 1.0% in 2021. This is the average monthly salary including housing, transport, and other benefits. A dash indicates data are not available. But even during a pandemic, companies must fight to retain the best talent, and many have multi-year wage agreements to honour.. Salary increases are inexorably linked to inflation; where inflation is one of the most important determinants when deciding on the amount of the salary increase. The OECD said that top managers in the South African civil service earn an average revenue corresponding to nine times of the GDP per capita in 2017, while the ratio is below six for the OECD average. Salaries vary drastically between different careers. Willis Towers Watsons report, which studies the size of pay budgets at firms, showed that pay rises in 2021 will vary greatly between industries, reflecting their different pandemic experiences and their recovery plans. The average salary South Africa. As an example, if the salary increase is 6.0% and inflation is 4.0%, then a 2.0% real increase has been granted. This is the average monthly salary including housing, transport, and other benefits. Trollip said that next years rise of 5% will be welcomed by many workers, but with inflation forecast at 4.1% the real terms increase that is left over will be more marginal. SOUTH AFRICAN LOCAL GOVERNMENT BARGAINING COUNCIL same percentage as the salary and wage increase for the 2019/2020 For the 2020/2021 financial year, with effect from 1 July 2020, by the same percentage as the salary and wage increase for the 2020/2021 The most pessimistic developed countries include Spain, Slovenia and Luxembourg. These four factors will in our opinion, limit salary increases for 2021 to only an inflation increase. Inflation Rate in South Africa increased by 3.2 % in January 2021 over the same month in the previous year. The email alongside normally strikes terror into any HR management team; however, this year with Covid 19, providing a cogent salary increase forecast is a daunting task. Only 7% of companies are not planning pay increases next year, down significantly from 14% this year, an indication that many organizations are projecting a turn toward normalcy in 2021. This will impact future consumer spending and the ability of the economy to recover in a hockey-stick fashion. Our experts will share their insights before and after the budget announcement. Read more. Some markets do not have 2021 forecasts available at this time. Despite this additional complexity, there is a robust method by which to devise an informed and scientifically formulated forecast which can be employed during the budgeting process. As an example, if the salary increase is 6.0% and inflation is 4.0%, then a 2.0% real increase has been granted. Key findings: P0141 - Consumer Price Index (CPI), January 2021KEY FINDINGS AT JANUARY 2021 Headline consumer price index (CPI for all urban areas) Annual consumer price inflation was 3,2% in January 2021, up from 3,1% in December 2020. South Africa: Inflation ticks up in January. Country Manager at Airbnb South Africa. The report stated that the average salary increase was 6.2%, down from 6.4% the previous year. The widespread pay freeze that has covered swathes of companies will start to thaw. Minimum Wages in South Africa averaged 20.38 ZAR/Hour from 2019 until 2020, reaching an all time high of 20.76 ZAR/Hour in 2020 and a record low of 20 ZAR/Hour in 2019. Similarly, the pay one acquires for a specific profession varies in different countries. The government is expecting GDP to record -7.3% in 2020 and then to rebound to 3.7% in 2021. More people participate in the South African labour market in the 4th quarter of 2020. Security Guard salaries vary drastically based on experience, skills, gender, or location. Inflation Rate in South Africa averaged 8.83 percent from 1968 until 2021, reaching an all time high of 20.70 percent in January of 1986 and a record low of 0.20 percent in January of 2004. Willis Towers Watsons Salary Budget Planning Report, which studies the size of pay budgets at firms, also shows that in 2021 South African companies expect to offer average pay rises of 5.7%. Our previous salary increase forecasts have always reiterated the same advice dont panic and put on your soothsayer cloak it is possible to provide Mike with a percentage, derived in a scientific manner, which represents a salary increase forecast that is both logical and defensible. South Africa ; Africa the portion that gives certain public servants increases that are a couple of percentage points above inflation. CAD Drafter salaries vary drastically based on experience, skills, gender, or location. What is the average salary in South Africa in 2021? In South Africa, the weakest employers in terms of salary expectations are in the Energy and Natural Resources sector, where an average pay rise in 2021 of 3.5% is predicted, followed by Business and Technical Consulting (4.2%), and Energy Services and Utilities (4.3%). This brings the average net salary after tax to about $1,128.39/month. Further, although economists are predicting a wide range of inflation outcomes for 2021, our 4.3% prediction is close to the median of such forecasts. Salaries range from 14,700 ZAR (lowest) to 43,300 ZAR (highest).. A South African employee typically earns around $12.36/hour, $2,144 a month, or $25,725 a year. A real increase is defined as the increase after inflation has been taken into account. Data published Monthly by Statistics. The maximum level was 20.7 % and minimum was 0.2 %. South African Budget 2021. 4TH FLOOR, 82 GRAYSTON DRIVE, SANDTON, SOUTH AFRICA, TEL: + 27 11 305 1940 TEL: + 27 11 305 1941 FAX: + 27 11 784 5087, JUMEIRAH LAKES TOWERS, DUBAI, UNITED ARAB EMIRATES, PROJECTED SOUTH AFRICA SALARY INCREASES 2021, Axiomatics forecast of future inflation (in red), SA SALARY INCREASE RECOMMENDATION FOR 2021 DECEMBER 2020 UPDATE, PROJECTED 2020 SOUTH AFRICAN SALARY INCREASES, PROJECTED SOUTH AFRICAN SALARY INCREASES FOR 2020. 2020 has been a horror show for many businesses and their people, but there are signs of resilience and cautious optimism for next year, said Melanie Trollip, director of Talent and Reward at Willis Towers Watson South Africa. Cognisance must be taken of the fact that inflation in South Africa is notoriously difficult to predict for the main reason that the currency exerts a significant influence on inflation; this year, the difficulty is exacerbated because of the Covid 19 pandemic. This is the average monthly salary including housing, transport, and other benefits. Of the organizations giving pay increases, 67.2 percent said they plan to continue giving an average base pay increase of 3 percent or less. An unemployment rate of 50% is concomitantly not outside the realm of possibility. Salaries range from 7,930 ZAR (lowest) to 27,400 ZAR (highest).. A person working as a Gardener in South Africa typically earns around 9,040 ZAR per month. Comments section policy: Any attacks on BusinessTech, its journalists, or other readers will result in a ban. On a monthly basis, consumer prices went up 0.3%, following a 0.2% rise in the prior month and slightly below market consensus of a 0.4% increase. Further, the recent ratings downgrade meant it would have been impossible to finance the governments Covid 19 initiatives without resorting to a R70 billion loan from the IMF. This is the average monthly salary including housing, transport, and other benefits. Average salary increases in South Africa. The next process in the scientific methodology, is to establish the quantum of the real increase. They are required to be a strategy swami, a finance guru, an operations rock star, an incentive ninja and a general behavioural psychologist Jedi. The average salary in South Africa varies with each year. Data Analyst salaries vary drastically based on experience, skills, gender, or location. Given this assertion, the calculation of the scientific salary increase formula is easy: Now however, before you shoot off the email replying to Mike Shannon, some degree of interpretation and qualitative analysis must be introduced into the scientific process. The Salary increase trends section provides content for all employees. The Economic trends and Salary increase trends sections provide three years of data for each market/country. South African private-sector workers are set to receive an average pay rise of 5% in 2021, which is a cautious improvement over the 4.2% given this year, according to salary research from global advisory Willis Towers Watson. Salary increases have hovered around 3% for the past decade. Aside from the Philippines, the report shows that 12 other markets in the Asia Pacific region have slowed down their 2021 average pay rise forecasts. The consumer price index increased by 0,3% in January 2021. The table below illustrates the real increases granted by South African companies over the last 18 years. Developed countries have forecasted a 2.5% increase on average and developing countries are projecting a 6.2% increase for 2021. A person working as a Security Guard in South Africa typically earns around 9,340 ZAR per month. A person working in South Africa typically earns around 31,100 ZAR per month. The UIF actuaries have recently modelled four scenarios, two where unemployment peaks at 41.4% and two where the zenith is 53.7%. The energy industry is budgeting for the weakest salary rises, while pharma and manufacturing are set to pay more generously, she said. The departure point is to forecast the future inflation rate. What will the 2021 Budget Speech mean for you and your business? A real increase is defined as the increase after inflation has been considered. Read: Absa promises full banking fee and service review for 2021. The consequences of the IMF loan are that the government will have to take steps to stabilise the countrys finances which would include reducing government spending and improve the governance of state owned enterprises. This trend can be attributed to lower GDP growth, declining consumer spending, political uncertainty and the resulting lower level of business confidence. All residents are subject to income tax. Time to take our medicine. February 17, 2021. Its so easy to use. Our online salary tax calculator is in line with changes announced in the 2021/2022 Budget Speech. Trollip said that companies are planning to expand their pay budgets and offer slightly more generous rises to staff. Now, if they are to accurately predict an equitable salary increase for 2021- they will have to become a soothsayer. Salaries range from 4,160 ZAR (lowest) to 14,400 ZAR (highest).. Simply enter your current monthly salary and allowances to view what your tax saving or liability will be in the tax year. The statistic depicts South Africa's real gross domestic product (GDP) growth rate from 2015 to 2019, with projections up until 2025. 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A salary increase which is equitable to all stakeholders for 2021 is therefore: Forecasts can change significantly on the back of incoming data. However, there has been a discernible trend over the last few years of lower real salary increases being granted. Minimum Wages in South Africa increased to 20.76 ZAR/Hour in 2020 from 20 ZAR/Hour in 2019. The historic methodology adopted in South Africa, when determining an equitable salary increase in the past, was to add a 2.0% real increase to the forecasted inflation figure. Since people have different careers, they do not get the same payments. A person working as a Data Analyst in South Africa typically earns around 28,300 ZAR per month. The average salary increase in the Philippines this year, however, is slightly lower than the 5.7-percent pay rise in 2020. The data presented above supports this rule of thumb method, given that over the last 17 years the average real increase granted by companies was 1.7%. P E Corporate Services has released its 2019/2020 Salary Trends report, which shows the average salary increase in South Africa over the last year was 6.2%. Gardener salaries vary drastically based on experience, skills, gender, or location. The historic methodology adopted in South Africa, when determining an equitable salary increase, has been to add a 2.0% real increase to the forecasted inflation figure. The top three industries expecting more generous rises are: A similar overall average pay picture is emerging across Africa and the globe, with most organisations in major economies anticipating higher pay rises in 2021 than 2020. Employment law litigator Joe Mothibi explains that an annual increase is not a given unless stated otherwise in the job contract. Pharmaceutical and Health Sciences (6.4%); What is your favourite retail rewards programme.