Salary hikes may disappoint

Mila

Mila

Honorary Master
Joined
Nov 11, 2008
Messages
54,945
Reaction score
9,466
Location
My own Planet
http://fin24.com/articles/default/d...icleId=1518-25_2569371&IsColumnistStory=False
Cape Town - The consumer's purse will be only about 3% fatter this year because leaner salary increases than in 2009 are expected - together with an increase in personal tax and rises in petrol and electricity prices.

In a report on prospective retail sales for 2010, Cadiz Securities said consumers are expected to have only R30.7bn more in their purses.

This is half what they received last year.

A model is used to predict the rise in household income so as to estimate retail sales.

According to Cadiz analysts Shamil Ismail and Jasmine Lin, this year's salary increases will be modest because of the still-suffering labour market and moderate inflation.

Average increases of 6.1% can be expected.

Ismail reckons salary increases are the most important contributor to consumers' financial viability. Cadiz believes that this year's modest salary increases will result in a poorer year for retailers.

The asset manager also expects the petrol price to rise by 12% in rand terms.

If Eskom's electricity tariff increases by 35%, the consumer's purse should shrink by another R7.6bn.

Cadiz further believes personal income tax will rise this year and extract another R10.4bn from consumers.

- Sake24.com
Click to expand...

Ai.
 
I don't think 2011 will be much better.

I haven't had a 6% increase in 3 years, always well below (can thank a merger for that). Had to change jobs in order to get an increase.
 
me too.

I think 2011 is going to be a shocker.
If Eskom Proceeds with the increase we will feel the effect of services and products being higher but it will actually only be felt the a year after and well beyond 2013. When everybody has budgeted for it. And will budget for upcoming increases..
 
Tax goin up - thats a given, due to the budget deficit.
My bet, fuel levy, sin tax up (if that was Trevor, not sure about Pravin).
Income tax may also be up (for those who dont know, sars has released something saying tax on car allowance is up to 80% (used to be 60%).
So i am already budgetting for loss in income cos of tax - salary increases also dont look good.

Rand will get stronger due to SWC - good for consumer - bad for exports.
So inflation will hold, even with Eskom increases.
But then - after SWC - fireworks start.
 
A recession has ripple effects that last for years. I'm seeing it with my wifes small business. For 3yrs we could not increases her prices but business expenses increased. Its tough our there. Only thing that has saved us is having cut all our expenses and give up on a lot.

And if we did immigrate a few years back (when we it was easier for us), we would not be better off than here - its not just an SA problem.
 
Just to add.
It was estimated last year that, at the then rate, USA budget deficit may increase to 20 trillion dollars.
This means that taxpayers would have to pay a tax rate of 80% to cover it in a few years.
I am sure though that they have realised this and doing something about it.
But it should mean increases in their tax.
So its not an SA thing.
 
cbrunsdonza said:
And if we did immigrate a few years back (when we it was easier for us), we would not be better off than here - its not just an SA problem.
Click to expand...

superskully said:
.
So its not an SA thing.
Click to expand...

Never said it was.
But SA, Eskom and things like this has an influence on my salary.
The world Cup has massaged our economy this year but next year we will see what is up when we are faced with all the debt.
 
The mining and construction industry has negatively affected our consulting business. Fortunately, we still performing above budgeted amounts. During this recession, we been focusing a lot on staff development to improve business efficiencies.
 
The solution: go work for eskom, its a gravy train, no matter how big a mess you make of your work, you can always blame it on a screw, and if it comes to you being fired before your contract expires, you can just claim millions in damages from them.

PS. skin transplant advised.
 
Just to add on the car allowance thingy.
I beleive that SARS will charge 80% now and not 60%, and they are doin away with the 32000km rule (18 prv and 14 bus).
For someone like me that rule was cool, cos i did not do business mileage but could still claim it.
Now they require a logbook (although it will be a mess for auditing), but my company requires official mileage to be logged electronically (crap, so cant fudge it).
 
superskully said:
Just to add on the car allowance thingy.
I beleive that SARS will charge 80% now and not 60%, and they are doin away with the 32000km rule (18 prv and 14 bus).
For someone like me that rule was cool, cos i did not do business mileage but could still claim it.
Now they require a logbook (although it will be a mess for auditing), but my company requires official mileage to be logged electronically (crap, so cant fudge it).
Click to expand...



What sucks is that our company employed people from PTA, they were told that they will be compensated for the KM's they drive to work and back.

So say they came for the interview and said that the package was not big enough because of fuel prices. My company said that is fine we do not mind we will pay you to drive to JHB and back every day.
Now? The company told the people it's not their problem you have to sort it with the taxman. If they change policy now SARS will audit them and fine them.
 
I am going to have to disagree with the recession talk..

We were barely touched by the recession comparratively.
Seems like the recession is being used as an excuse to bleed us dry to cover up poor management. Our problems were problems long before the recession. Unlike the rest of the world, we aren't paying for the recession, we are paying for other things, so this is actually an SA thing.
 
DreamKing said:
you should be glad that you still have your job............ :D
Click to expand...
Everyone I know in the UK and US is at present simply glad to have employment. Everyone that is still employed that is. Plenty are out of work.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X