In the first quarter of 2024, the total earnings for employees in South Africa’s formal non-agricultural sector dropped by 3.5%, mainly due to losses in various industries like trade, community services, and manufacturing. Basic salaries saw a slight decrease, while bonuses and overtime payments also declined.
The average monthly earnings (AME) paid to employees decreased slightly by 0.1% quarter-on-quarter, from R26,822 in November 2023 to R26,791 in February 2024. However, year-on-year, AME grew by 4.6%.
- Overall Drop in Earnings: Employee earnings decreased by 3.5% in early 2024, reflecting a tough economic period, especially in industries like trade and manufacturing.
- Basic Salaries Slightly Down: Basic wages fell slightly by 0.8%, with several key industries like trade and manufacturing seeing declines. However, the transport, electricity, and community services sectors saw slight increases.
- Bonus Payments Hit Hard: Bonuses dropped significantly by 25.3%, affecting most industries. Only the business services sector managed to increase its bonus payments.
- Overtime Payments: Overtime pay also declined by 2.7%, though there were some positive gains in sectors like electricity and trade.
- Year-on-Year Perspective: Despite the quarterly drops, when comparing March 2023 to March 2024, basic salaries increased by 5%, and average monthly earnings saw a 4.6% growth, indicating some long-term resilience.