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Second round inflation effects, anyone?
Salaries should increase on average by about 11,8% in 2008, an employment report released on Thursday shows.
"We expect salary increases to average nearly 12% this year," said economist Mike Schussler who compiled the report for the United Association of South Africa trade union.
"Higher inflation makes for high salary increases".
In 2007 the average wage increase had been 9,2%.
This had been 2,7% higher than the average CPIX for 2007.
Schussler said many wage agreements were CPIX-plus-1% or 2%, plus productivity increases.
Schussler said the average big company salary stood at R13 500.
Speaking about the factors which determined earning capacity, Schussler said education still remained at the top.
Someone with a Masters or PhD degree was likely to earn 432% more over their total lifespan than someone with only matric.
Each year of tertiary education equated to 12 years of schooling in terms of increasing earning capacity.
"Education is a real return on investment," said Schussler.
full report from M&G here
"We expect salary increases to average nearly 12% this year," said economist Mike Schussler who compiled the report for the United Association of South Africa trade union.
"Higher inflation makes for high salary increases".
In 2007 the average wage increase had been 9,2%.
This had been 2,7% higher than the average CPIX for 2007.
Schussler said many wage agreements were CPIX-plus-1% or 2%, plus productivity increases.
Schussler said the average big company salary stood at R13 500.
Speaking about the factors which determined earning capacity, Schussler said education still remained at the top.
Someone with a Masters or PhD degree was likely to earn 432% more over their total lifespan than someone with only matric.
Each year of tertiary education equated to 12 years of schooling in terms of increasing earning capacity.
"Education is a real return on investment," said Schussler.
full report from M&G here
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