Expected Wage Increases for 2024, in SA

South African employers are expected to increase pay by an average of 6.1% in 2024, according to a recent survey (as per BusinessTech). This is a slight decrease from the actual average rise in pay budgets made in 2023, which was 6.6%. The study found that companies surveyed are considering raising their compensation budgets in 2024 for two primary reasons: about 70% of the organizations attribute inflationary pressure as the reason, while nearly 44% responded that the increases are due to a competitive labour market, with companies aiming to attract and retain quality employees.

The forecast rise for 2024 is higher than the global average of a 5.0% pay raise predicted in 2024. The study also found that 59% of employers are looking to hire engineers, 56% are seeking IT professionals, and 48% are interested in recruiting more salespeople.

Inflation in South Africa has been high, with the current inflation rate at 5.5% as of November 2023.

The expected National Minimum Wage increase to take effect on 1 March 2024 will be higher than the anticipated general increase of 6.1%. It is expected that the increase will be CPI (which is currently running at 5.5%) plus 3%. This is likely because 8 of the 12 Commissioners on the National Minimum Wage Commission voted in favour of this and there is increasing social pressure to narrow the vertical income gap across South Africa and the world. The three Commissioners representing business voted for a CPI only increase.