The Net Salary Index increased slightly in June,although inflation continued to outpace salary growth ; this was according to the Payinc Net Salary Index on Wednesday.
South African salary earners are taking home slightly more money in nominal terms, but rising inflation and escalating administered prices are eroding those gains, leaving households with the weakest purchasing power in almost two years.
This is according to the latest Payinc Net Salary, which tracks the earnings of 2.1 million salary earners across South Africa.
The index showed that the average nominal net salary increased by 0.4% to R21,598 in June from May. However, salaries were only 0.5% higher than a year ago, underscoring the sluggish pace of wage growth.
PayInc said the modest increase in nominal salaries disguises the financial reality confronting many households as inflation continues to outstrip income growth. It said the slight increase in nominal salaries masks the reality facing many South African households.
