Remuneration Increase Expectations for 2019

Khokhela Consulting’s Actual / Predicted Increase Survey for 2018 shows that average increases on Basic Salary were 6.6% and Total Package 6.0%. This is above the inflation rate of 4.9% as at September 2018. On average increases for 2018 were 6.3% which is lower than what was granted in 2017 with the average increase being 6.6%. The average increase granted in 2017 was still above the average inflation rate of 5.3% for 2017.  Granted increases for 2018 on average are still higher than the current average inflation rate of 4.5%.

Average predicted increases for 2019 on Basic Salary and Total Package are expected to be 6.4% and 6.1% respectively.  On average unionised staff are expected to receive increases of 7.1% on Basic Salary and 6.8% on Total Package, with some organisations predicting a maximum of 8.5% on basic salary and 8.0% on Total Package.

Focus Economics Consensus Forecast panellists see inflation averaging 5.1% in 2018. For 2019 the panel sees inflation averaging 5.3%. The predictions in CPI show that average increases for 2019 will be above inflation as in the past.

The graph below provides the average predicted increases on Basic salary and Total Package for 2019 for the various categories of staff.

 

 

 

 

 

 

 

 

 

The next publication of this survey will be out in October 2019.

For any further information or should you require a copy of the results, please contact Arlene Brown either via email on arlene@khokhela.co.za or on 087 802-5643.