Slowdown In Inflation Boosted Salary Earners Buying Power: Study

A study by local payment-clearing house, BankServ Africa, shows that the slowdown in inflation has boosted salary earners buying power. It shows that Real Take-Home Pay, adjusted for inflation, increased by 0,9 on a monthly basis in February.

The BankServ Africa Take-home Pay Index BTPI tracks the average nominal take-home pay among an estimated four-million salary earners.

The Index found that in 2024, real take-home pay averaged R14 292 representing the first increase since 2020.

BankServ Africa take-home pay index continued to tick higher - actually, a trend that we have seen over the past in a couple of months. So, I think it is really a reflection of the fact that it is getting or going better with our corporates out there in the South African economy compared to a few years ago. So, thats sort of deviation of the pressures that we have seen in terms of load shedding since last year have started to open up room for slightly better financial performance of companies and we started to see that in better salary offerings since last year and that trend has been continuing in the first two months of 2025," Independent Economist, Elize Kruger explains.