The resource below includes our latest household affordability data for February 2020 and STATSSA’s latest jobs data. We will be assessing Budget 2020 based on its impact on household affordability and the socio-economic situation households living on low-incomes experience. Budget 2020
The Minister of Employment and Labour has gazetted a 3,8% increase for South Africa’s National Minimum Wage for 2020, to be instituted on 1 March 2020. The 3,8% is lower than the 5% recommended by the National Minimum Wage Commission. For a General Worker, currently on an R20 hourly rate, the 3,8% increases the hourly…
Read more
Every month government injects ±R6,2bn directly into the economy through the instrument of the old-age grant. ±3,5 million pensioners receive this money directly into their pockets and spend every cent of this money directly in the economy. At least once a month every economic hub in South Africa is boosted. Economic activity flourishes. Across South…
Read more
Commission’s recommendation for a 5% increase in the National Minimum Wage will deepen the economic crisis and worker poverty. The National Minimum Wage [NMW] was introduced in January 2019 to improve the wages of millions of the lowest paid workers and protect workers from unreasonably low wages. The NMW was set at R20 an hour…
Read more
That ‘’Janu-worry’’ has entered the national lexicon is an indication that the household affordability crisis is no longer solely a working-class issue. More households are struggling to make ends meet and this struggle is getting harder. The January 2020 Household Affordability Index shows dramatic spikes in food prices. Month-on-month the cost of the…
Read more
December has seen dramatic spikes in food prices with prices increasing for most of the meats and vegetables in the household food basket. It is expected that prices rise annually in December. These increases however are harder to absorb during this time because of the shorter working days and hours in this period. Workers have…
Read more
We are close to marking one year since the introduction of the National Minimum Wage. The value at which the NMW is set will be reviewed. Workers work to support their families. Workers reasonably expect that their wages will cover the real costs of several core basic goods and services. To be productive…
Read more
One of the most striking features of the August HAI is that of the influence of the recent taxi fare hikes and electricity increases for low-paid workers. In Pietermaritzburg taxi fares increased by ±7,7% and electricity by 13,07. In August the typical transport cost for a low-paid worker in Pietermaritzburg is R1 176 per month and…
Read more
Calls for South Africans to save money in the current socio-economic context of very low baseline wages, high levels of unemployment and escalations in the cost of basic goods and services may be misguided. In our analysis this is because for most South Africans paid very low wages (1) savings are not generated from surplus…
Read more
The introduction of new foods for zero-rating from April 2019 have not had any impact on the household affordability crisis. Read more…
