Worldwide businesses are planning to offer an average of 5% increase this year.
In South Africa that figure is somewhat higher coming in at a planned average of 6.1%.
This is based on a survey (by WTW) of 440 large organisations across SA.
‘In South Africa that figure is somewhat higher coming in at a planned average of 6.1%’
This figure is of course an average meaning that some businesses may offer 12% while others may offer 0% increases (or even reduced salaries such as happened during the Covid Pandemic).
While most businesses reported feeling optimistic about 2024 there are factors at play that may affect local inflation and the economy such as the wars in Europe and the Middle East (and the political manoeuvring going on about those conflicts) and upcoming local elections.
Combined with those factors are the weakening Rand and increased shipping and fuel costs.
This may mean that employees unfortunately see inflation outstrip their increases.