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Lower-income earners take the biggest knock

By Siphelele Dludla 2h in the past

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JOAHNNESBURG – SOUTH African earnings earners taking residence R30 000 and beneath have been the most affected by the Covid-19 lockdown restrictions, which hampered financial exercise.

The BankservAfrica Take-home Pay Index (BTPI) launched yesterday confirmed that the month-to-month equal of the variety of salaries paid declined by 10.4 p.c in October in contrast with the similar month final yr.

This was an enchancment from the 34 p.c contraction in the variety of salaries paid in July.

BankservAfrica mentioned the highest single variety of declines in salaries occurred in July adopted by June due to funds to workers and employment figures lagging financial occasions by a month or so.

This recommended that the decline occurred throughout two consecutive months in April and May of the strictest lockdown restrictions at the peak of the Covid-9 pandemic.

This was consistent with a Statistics South Africa’s survey which discovered that as much as 76 p.c of respondents didn’t expertise wage/ wage will increase by the sixth week of nationwide lockdown.

The chief economist at economists.co.za, Mike Schüssler, mentioned the Covid-19 lockdown had affected each day and weekly employees the most.

“At the start of the Covid-19 lockdown, daily and weekly workers were hurt the most with salary numbers dropping to extremely low levels,” Schüssler mentioned.

“This is similar to what is being experienced around the world where lower-end income earners were hit the hardest.”

In spite of this, BankserveAfrica mentioned salaries had improved by 3 p.c year-on-year in actual phrases in October. Workers have been cushioned by the Unemployed Insurance Fund’s Temporary Employer/Employee Relief Scheme fee.

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