Survey confirms that wages are falling
The South African Federation of Trade Unions, which has been concerned and angry at workers’ falling living standards, has now been proved to be fully justified, with the revelation in BankservAfrica's latest Take-home Pay Index that take-home pay levels declined dramatically in May 2018:
“The average gross salary in May 2018 was R14 290 in current terms. Net take-home pay was R10 010. But when the gross salary is changed to constant 2016 money - to make comparison easier - it decreased to R13 621, some R290 less than in April 2018.
“The current typical wage increased by 2.8%, but after taking inflation into account, declined by 1.5%. The decline leaves take-home pay in constant terms at the same level as in December 2013".
The decline was likely to continue until July when the Public Service salary increase and back-pay comes into effect. That will not however mean any improvement for millions other workers in the private sector whose wages are falling.
Right-wing economist Mike Schüssler, in a comment about the BankservAfrica report, also confirms what SAFTU has been arguing - that lower wages are not just a burden on the low-paid workers and their families themselves but have a negative affect on the whole economy.