Remuneration Increase Expectations for 2022

Khokhela Actual / Predicted Increase Survey for 2021 shows that the average increase in salaries for 2021 was 4.4%. This is currently in line with the average inflation rate for 2021 which is currently on average 4.3%. Predicted increases for 2022 are expected to be on average 4.9%.

Statistics South Africa has published its Consumer Price Index (CPI) for October 2021, with inflation unchanged at 5% compared to September.

This is the sixth consecutive month where the annual increase is higher than the midpoint (4.5%) of the South African Reserve Bank’s monetary policy target range.  The SARB has indicated that inflation is expected to be between 4.3% an 4.4% in 2022.

Real GDP growth is expected to moderate to 1.8 percent in 2022, 1.6 percent in 2023, and 1.7 percent in 2024, a rate that is too low to meet the country’s development needs. The Minister of finance stated that over the next three years the growth of the local economy is expected to average 1.7 percent, reflecting some structural weaknesses such as inadequate electricity supply.

The graph below provides the average predicted increases for 2022 for the various categories of staff. The average increases per category of staff have been calculated including and excluding the 0% increases.

Source: Khokhela Consulting

The next publication of this survey will be out in November 2023.

For any further information or should you require a copy of the results, please contact Arlene Brown either via email or on 087 802-5643.