INSIDE YOUR POCKET: Take-home pay positive, but storm clouds gathering for tax payers

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GUEST - Shergeran Naidoo, BankservAfrica’s head of stakeholder engagements.



Take-home pay showed a year-on-year increase, continuing its upward movement in January as the high rate of inflation moderated, providing relief to salary earners. However, stormy clouds are on the horizon, particularly for tax-paying South Africans.



According to the BankservAfrica Take-home Pay Index (BTPI), the nominal average take-home pay was R15 670 in January, representing a 9.1% year-on-year increase although it was off a low base and showed a 1.5% growth on the R15 533 recorded in December, says Shergeran Naidoo, BankservAfrica’s head of stakeholder engagements.



Real take-home pay, the amount you receive after tax, insurance and other deductions, was also higher at R13 968 in January, a 3.5% year-on-year improvement, suggesting the significant erosion of the purchasing power of salary earners during 2023 is easing off.
29 Feb 2024 3PM English South Africa Business News · Investing

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