South Africans have seen their real salaries lag behind inflation by nearly four percentage points in the past five years, according to a report from payment services house BankservAfrica.

The report, which looked at data for the five years to February 2023, found the average nominal take-home pay in SA increased by 22.8% to R15 438, while core inflation rose came in at 26.6%.

Amid stress from the fallout from Covid-19 and Russia's invasion of Ukraine, SA's nominal average take-home pay fell behind the rising cost of living in 2022.

Independent economist, Elize Kruger, who compiled the report, said in a statement that the rising costs of production such as fuel, exacerbated by loadshedding and wage demands, was creating a tough environment for salaried workers generally.

Many companies were also trying to quickly reduce their dependence on Eskom, with a "conservative survival" approach from companies not conducive to employment growth, she said.

With a weakening rand, more frequent loadshedding anticipated this winter, and the possibility of further interest rate hikes, local companies could face even more cost pressures in the coming months. Many employers have already indicated that they plan to award 4% to 6% wage increases in the coming year.

"Over the past 18 months, the economic environment has been exceptionally challenging for companies," said Kruger.

"Companies have indicated a shift from potential expansion and investment to becoming less dependent on Eskom and have redirected capital earmarked for investment towards self-sufficiency. This conservative 'survival' approach is not conducive to employment growth in South Africa and also keeps a lid on salary increases," she added.

BankservAfrica said that given the number of salaries paid into the bank account of South Africans that its data captures, it is an early indicator of the state of the employment market.

SA has already seen the number of employed people increase by 258 000 to 16.2-million in the first quarter of 2023, compared to the fourth quarter of 2022. Although the increase was partly attributable to a growing workforce, the widening unemployment rate also reflects SA's inability to create enough jobs.

BankservAfrica believes that with a lower economic growth forecast for 2023 compared to 2022, the job market will be even bleaker, leaving very little room for salary improvements.

"Therefore, expect the nominal take-home pay to continue lagging on inflation in the months to come… Until the economic narrative could meaningfully change, expect more of the same in the medium term," said Kruger.

The performance of salaries was so dismal in the past five years that even though pension payments are lower than average salaries in SA, it was better to be a pensioner because their financial situation didn't deteriorate.

BankservAfrica Private Pensions Index showed that private pension payments rose from R7 001 in February 2018 to R10 054 in February 2023, reflecting a 43.6% increase. The highest average nominal pension payment was recorded in July 2022 at R10 483 per month. Kruger said investment performance may have contributed to the growth.