Tag: salaries

Which IT job pays best in South Africa?

Source: CareerJunction

Jobs portal CareerJunction has published it latest salary review for 2018, showing among others what the average IT employee earns per month.

CareerJunction used actual salary offerings on their jobs portal Web site (16 000+ jobs monthly) for the latest measurable period (December 2017 to May 2018).

Skill levels covered in the report include both intermediate and senior.

IT management jobs saw the biggest jump in salary, moving from R59 490 per month to R66 010 (11%). Systems analysts were the worse hit by decreases, losing 17.1% in value over the year (from R42 420 to R35 170).


Image credit: Business Tech

Regional salary differences

The Western Cape and Gauteng remain favourable locations to work for IT professionals. Salaries in these regions are very close to the national average while salaries in KwaZulu-Natal are not nearly as competitive.

The salary ranges above are based on monthly “cost to company” remuneration and only serve as an indication of the average salary offerings for each occupation.

By Sipho Masondo for City Press

Fears are mounting that up to 15 municipalities across the country could collapse because they are not likely to recover their R1.5bn investments at VBS Mutual Bank.

Their exposure to VBS was “too large compared to their operating revenue”, according to a Treasury document sent to the affected municipalities last week.

The SA Reserve Bank (Sarb) placed VBS under administration in March, following a liquidity crisis. VBS’s main source of cash was illegal short-term municipal deposits which it used to fund long-term loans to clients.

Senior Treasury officials fear that some of the municipalities – based in Limpopo, North West, Gauteng and Mpumalanga – could collapse. This would force their provincial governments to place them under administration.

The Treasury report reveals that the 15 councils are unlikely to recover their R1.5bn total investment.

“The payout to municipalities is highly uncertain,” the document reads. Its authors point out that Sarb is likely to prioritise retail depositors and not bail municipalities out.

“In line with the mandate of protecting the most vulnerable, the restructuring will focus on the depositors. At this stage, the ordinary depositors will get back almost all their deposits,” reads the document.

Sarb has already approved a restructuring that would benefit rural retail depositors, funeral insurance collectives, stokvels “and other vulnerable groups”.

“There may be little left for municipalities, which deposited illegally. It is a general principle that no bailouts are provided to municipalities,” the Treasury document says.

A senior Treasury executive said there were concerns that because of their “reckless investments” at VBS, some of the municipalities may no longer be financially viable.

“Some of their finances are in tatters, and they may need to be placed under administration,” the executive said.

Salaries in jeopardy

The official cited the example of Giyani, which invested R158m of its R302m operating revenue in VBS.

“How does a municipality without half of its operating revenue survive?” the official said.

The newly established Lim 345 Municipality, in the Thohoyandou area, had invested R122m of its R344m operating revenue in VBS. Greater Tubatse in Sekhukhune had put R210m, or 38%, of its R548m operating revenue in the bank.

Another Treasury executive said this money was part of municipalities’ annual budgets and not extra money that the councils could function without.

“Unfortunately, they have lost all that money and it is only a matter of time before you hear that some of them are not able to pay salaries. I’ve heard that one of them nearly didn’t pay salaries in November last year,” he said.

An executive member of the SA Local Government Association said it was “almost a foregone conclusion that some of these municipalities will crash”.

“We are losing sleep over the issue. The money was strictly for operational issues, not reckless investments,” said the official.

Fictitious deposits, untraceable lending

The Treasury report reveals that about R900m is missing at VBS.

“This money appears to have disappeared due to fictitious deposits and untraced lending. There is evidence of large, unrecoverable loans to directors and related parties. There is some evidence that VBS paid a lawyer a ‘commission’ when municipalities deposited money with the bank. It is not, at this stage, evident if this commission was passed on to municipal managers.”

The report says the bank’s business model was “ill-fated and doomed to fail”.

“VBS made long-term loans, knowing that their primary funding was short-term in nature and lumpy. Hence the business model is almost certainly designed to generate liquidity problems when a few municipalities withdraw their funds to spend on budgeted programmes,” the report reads.

Law was broken

Treasury says VBS actively flouted the law by focusing on municipal deposits, which made up almost 75% of all its deposits. Despite being aware of the restrictions on accepting municipal deposits, the bank continued to accept more. This continued even after it started talking to Treasury about phasing out its past municipal deposits, in order to comply with the Municipal Finance Management Act.

The Mahikeng, Greater Tubatse, Ruth Segomotsi Mompati and Elias Motsoaledi municipalities appear to have been enticed by the high returns the bank promised and disregarded the act.

Curator’s ‘extortionate’ fees

Two VBS senior managers accused the bank’s curator, Anoosh Rooplal, employed by auditing firm SizweNtsalubaGobodo, of charging “exorbitant and extortionate” fees. He sent the bank a bill of R2.6m for three weeks of work.

Sarb appointed Rooplal when it placed VBS under administration in the middle of March.

Rooplal sent the bank his invoice on March 31. The bank paid three days later.

One of the managers said: “If you invoice R2.6m in three weeks, how much will you be paid every month? How much will Anoosh and SizweNtsalubaGobodo be paid by the time the bank is back on its feet? It all looks exorbitant and extortionate.”

Another manager lamented the fact that while depositors could not access their money, the curator was being paid handsomely.

“It simply just doesn’t make any sense to me,” the manager said.

The curator’s spokesperson, Louise Brugman, said Sarb had approved the remuneration and fee structure for the curatorship upfront.

She said that, as per normal governance practice, the curator was required to regularly update Sarb on fees, related activities and the bank’s financial position.

“As further irregularities have been uncovered within the bank, additional experts have been required to assist to restore the bank, all of which is reported and explained to Sarb,” she said.

BankservAfrica’s latest take-home pay and private pensions indices show that 2018 is off to a good start, with growth experienced in both nominal and real terms.

The BankservAfrica Take-home Pay Index shows average formal sector pay was R14,675 in January 2018, 5.8% higher than January 2017 before inflationary adjustment.

This increase was lower than December’s growth of 7.3%. However, when adjusted in line with inflation, take-home pay increased by 1.2% on a year-on-year basis, and represents the slowest increase in five months.

“This positive real increase for money banked by employees’ points to a gradual increase in living standards for most formally employed people,” said Mike Schüssler, chief economist at Economists dot coza.

The typical formal employee experienced a real increase of 2.2% – nearly double that of the average take-home pay increase.

The share of employees who receive up to R4,000 per month declined to 13.7% in January 2017 compared to 15.2% in January 2018. This is a 7.8% decline in the number of employees receiving less than R4,000 per month over the last year.

Those earning monthly salaries between R12,000 and R1,000 now stand at 474,000 people, which is more than the 436,900 who earn below R4,000.

While the number of employees taking home between R12,000 and R16,000 only grew by 1.2% , this number is still higher than the number of earners in the low-income category.

A quick review of the salary index shows that the real increase average was 1% more than in 2016, the group said.

Real take-home pay declined in the first two months of the year and then gradually increased. In the last three months of 2017, take-home pay increased by 2.8% on average after inflation.

Source: Business Tech

South African salaries: what top executives earn

PwC has released its annual non-executive directors report, detailing the average salaries and increases given to South African executives across every major sector.

The data is based on PwC’s internal resource base and the 343 active companies listed on the Main Board of the JSE.

The total market capitalisation of these companies on the cut-off date was R16.49 trillion. This excludes preference shares, special purpose listings and suspended companies.

Because fees rarely follow a normal distribution curve, the report used a quartile/percentile range in preference to averages and standard deviations that assume normality.

It further broke down the earnings for large, medium and small-cap companies:

  • Large-cap: The top-40 JSE-listed companies, valued by market capitalisation;
  • Medium-cap: 41 to 100 of the JSE-listed companies, valued by market capitalisation; and
  • Small-cap: 101 to 343 of the JSE-listed companies, valued by market capitalisation.

Chairpersons and deputy chairpersons|

The report found that median chairperson fee across the entire JSE was R566,000 in 2017 – a 8.8% increase year on year.

Some listed companies also appoint a deputy chairperson. The purpose of the appointment is to deputise for the chairperson in the event of the absence of the latter from scheduled board meetings or to represent the chairperson due to time or other constraints.

The median salary for a deputy-chairperson was R933,000 in 2017.

This substantial difference in earnings is likely due to the fact that only large and medium-cap companies tend to appoint deputy-chairpersons.

Lead independent directors

Lead independent directors serve as independent directors and may help deal with difficult or underperforming executives as well—a task that has traditionally fallen to the chairperson.

Possibly the most significant contribution is the lead director’s dialogue with the CEO about substantive business matters or governance issues.

Most lead independent directors say they speak with CEOs many times between board meetings. Relations between CEOs and boards can be rocky and lead directors help maintain open communication in the boardroom.

“As companies gain more experience and feel higher levels of comfort with lead directors, their role is likely to continue to evolve. This role has proved to be successful for most, with 65% saying their positions have provided significant benefit for their companies,” the report said.

The median remuneration for lead independent directors was R1,007,000 in 2017.

Non-executive directors

Non-executive company directors saw some of the biggest increases among South African executives in 2017, with the median earning R377,000 (2016: R345,000).

“Although the increase awarded to incumbents is above CPI, when considering the shortage of talent to fill the positions and the responsibility shouldered under current regulations, we believe effective NEDs fulfilling these roles in JSE-listed companies are underpaid,” PwC said.

Remuneration among “super-caps”

This year’s analysis included 343 companies listed on the JSE, excluding preference shares and special purpose listings. It is of interest to note that only five (2016: 6) companies account for 50% of the total market capitalisation and 29 account for 80% (2016: 34).

In examining other large stock exchanges, similar market-cap scenarios appear most notably on the LSE and NYSE.

In categorising the top 10 full-year trading companies by market cap as the ‘super caps’ and perform an analysis of the fees paid to NEDs on their boards, PwC found that their fees are exponentially higher than our analysis of all 343 trading companies.

The median remuneration for chairpersons at these “super-cap” companies was R5,190,000.

The median remuneration for non-executive directors was R2,134,000.

Source: BusinessTech 

South Africa’s highest salaries

Jobs portal CareerJunction has updated its salary trends data for 2016, showing how salaries vary across 10 sectors in South Africa – and what employees can expect to earn at intermediate and senior level, including management.

The data is an update on a report published in April 2016 – showing that there have been some significant changes in what has been an economically turbulent year.

The report differs from the April review in that it focuses on intermediate and senior staff salaries, and includes the salary ranges for management and senior management.

The review is compiled exclusively for the South African workforce and HR/recruitment professionals, and is based on over 30,000 job listings on the CareerJunction website.

Salaries listed below are split into sectors (listed alphabetically), and include the highest and lowest-paying jobs in each industry, excluding management. Management salaries are included at the bottom of each list, where applicable.

It must be noted that the salaries are listed as a range, and will differ depending on where you live, your experience and skill level.

Source: www.businesstech.co.za

** indicates where salary information was not available due to low market demand for those skill sets.

Admin, Office, and Support

  • Highest paid: Health, safety and environment – R30,143
  • Lowest paid: Tellers and cashiers – R6,295

admin-office-support-nov16

Building and Construction

  • Highest paid: Civil engineers – R64,321
  • Lowest paid: Construction/Demolition equipment operator – R13,815

building-and-construction-nov16

Design, Media and Arts

  • Highest paid: Web design/Multimedia/3D design – R34,056
  • Lowest paid: Photographers – R9,917

design-media-and-arts-nov16

Engineering and Architecture

  • Highest paid: Civil/Structural Engineers – R62,637
  • Lowest paid: Drafting Engineers – R19,070

engineering-and-architecture-nov16

Finance

  • Highest paid: Corporate lending – R73,650
  • Lowest paid: Financial services consulting – R11,090

finance-nov16

ICT

  • Highest paid: Technical and business architecture – R62,337
  • Lowest paid: Telecommunication technical product specialist – R16,917

ict-nov16

Manufacturing and Assembly

  • Highest paid: Process control – R30,125
  • Lowest paid: Abattoir worker – R10,750

manufacturing-and-assembly-nov16-2

 

Marketing

  • Highest paid: Communications and public relations – R40,982
  • Lowest paid: Shop decorations and visual display – R11,818

marketing-nov16

Sales

  • Highest paid: Account management – R32,708
  • Lowest paid: Retail employee – R9,855

sales-nov16

Warehousing and Logistics

  • Highest paid: Logistics managers – R35,325
  • Lowest paid: Packing and packaging– R3,450

warehousing-and-logistics-nov16

Labour unions have asked President Jacob Zuma to make good on a promise to cap the salaries of high-income earners, accusing business of not co-operating with them to improve economic conditions.

In their written submission to a meeting of the presidential working group on labour at the Union Buildings on Tuesday, trade union representatives said: “We need to revisit the notion of a package to raise the incomes of those at the bottom, combined with a freeze on the salaries of high income earners.”

They said a new wage policy should address the wage inequality in the economy.

The workers’ leaders had strong words for Zuma, saying the government hasn’t followed through on economic policies and lacks clarity on what has happened to some of the ANC’s promises.

Despite Zuma saying in his opening remarks that cooperation between business and labour successfully softened the blow of the 2008 global economic downturn, labour labelled the action “inadequate”.

The unions also said business is not doing its bit in helping to keep the economy afloat.

“While society is in crisis, many in business appear oblivious, raking in large profits, salaries and bonuses, and taking the social surplus offshore.

“Social stability, which business espouses, is not possible unless current conditions are radically transformed,” they said in their input.

Labour has suggested a 6- to 12-month programme to curb the economic crisis and change the structure of the economy.

The interventions include pushing government to “implement its own policies and meet its publicly made commitments” on issues like more local procurement and industrial policy.

New policy approaches needed

They also include considering new policy approaches where old ones have “clearly failed”, and where different policies are needed to ensure structural economic transformation.

Labour also said government should tell them how it has progressed on new policies like the black industrialists’ programme, and also on policies where changes are being considered.

“Government needs to make a frank and honest assessment of developments, and what obstacles (there) are to realisation of government policies in key areas,” the submission said.

Labour also called for a discussion on the ratings downgrade, and measures taken to avoid it. They said some of the policies government has adopted to avert the downgrade had “the effect of worsening the economic situation, and deepen(ing) the very economic problems which ratings agencies claim to be concerned with”.

Labour is, for instance, critical of government’s austerity measures, arguing it should be spending more to expand the tax base.

Zuma in his opening remarks thanked labour for cooperating with business and government to avoid recent rating downgrades, among others by going on an international pro-South Africa roadshow.

“If we work together in the manner we have done in the past few months, I am convinced that we will overcome the challenges that we face,” Zuma told the meeting.

Zuma said the sectors should all work together as they had done in 2008, when a global economic downturn loomed.

“We have had success before of working together to find practical solutions to our immediate challenges. As you would recall, after the onset of the global economic crisis in 2008, we crafted a strategy to cushion the impact of the crisis on workers.

“We need that spirit to address our challenges today.”

By Carien du Plessis for Fin24

South Africa continues to experience slow growth in disposable salaries, according to the latest BankservAfrica Disposable Salaries Index (BDSI) released last week.

The nominal trend indicates further increases could be even smaller than currently seen, but remain above the inflation rate.

The trend in total payments of disposable salaries and pensions shows consumers will not be in a strong position this year, according to Mike Schüssler, chief economist at Economists dotcoza.

At the same time, he pointed out, pensioners are still not well off by any stretch of the imagination.

“Last month the increase in disposable salaries of 6,5% on a year ago barely beat inflation, which sits at 6,3%,” explains Dr Caroline Belrose, head of knowledge and risk services at BankservAfrica.

The average monthly take-home pay for March 2016 was R12 501. This still outpaced banked pensions, even though the BankservAfrica Private Pensions Index increased at a faster rate than salaries and was up by 7,4% for the year.

The average pension as paid via the payments system of BankservAfrica for March 2016 came in at R6 075.
Schüssler explained that the slowdown in disposable salary growth is also impacted by personal income taxes that were effectively raised again by not being compensated for inflation. This is called bracket creep and means that as people’s salaries or pensions go up to compensate for inflation, they enter a higher tax bracket. Therefore, in real terms they are taking home the same amount.

The salary of employees in the middle of the salary spectrum outpaced those at the higher end due to more people slowly moving up the employment ladder. The median salary shows a growth of 7.2%, which is again better than the average salary.

The typical pension increased by 13.4% on a year ago, and shows that many pensioners have kept up well with inflation. But pension payments are still less than half of salaries.

The typical salary came in at R9 282 for the month of March, while the typical pension was R4 259. The increases for both medians outpaced inflation in March 2016.

The total combined payments of salaries and pensions grew by a total of 7.2% over the year to March 2016. It is the seventh month that the total payments have been within 50 basis points of 7%.

This is slower than the period of July 2014 to March 2015, where only one month had a growth rate in single digits. While BankservAfrica still excludes payments to bank accounts that are over R100 000, the total averaged over R47,8-billion.

“The slowing trend in the total payments for salaries and pensions is probably the best indicator that the current growth in retail sales is coming from the falling sales of big ticket items such as cars,” explains Schüssler.

“There is likely to be a bit of extra consumer credit growth driving retail sales too. The faster increase of median and average pensions was unexpected. But as we do not have a long history of data, it is difficult to have foreseen this.”

He believes retail sales will no longer be growing at a real rate of 4% or even 3% within the next few months.

“Interest rate hikes and slower salary increases based on last year’s low inflation numbers will limit the employee’s ability to spend. This is bad news for large item sales like cars and furniture. It is likely that retailers will struggle for real growth in the next few months,” says Schüssler.

By Carin Smith for www.fin24.co.za

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