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News

Could February change South Africa’s financial outlook for 2019?

2018 was a tumultuous year laden with events that shook the market in so much that it yielded negative double-digit returns. Over the last 58 years, this has only happened on the JSE All Share Index during seven calendar years, including 1969/70 and 1975/76 where this occurred in consecutive years.

This begs the question: will history repeat itself? Should we brace for another negative year or are we faced with an opportunity to buy at lower prices?

Large part of SA economy exempted from minimum wage thanks to loophole

https://city-press.news24.com/Business/large-part-of-sa-economy-exempted-from-minimum-wage-thanks-to-loophole-20190109

Business slams ‘random’ rule and onerous application process, while labour decries how easy it is to avoid paying the minimum

A large part of the South African economy will be exempted from the new national minimum wage (NMW), which came into effect last week.

Final regulations on exemption from the NMW were released quietly on December 19, cutting the wage floor from the much-publicised R20 an hour to R18 an hour for qualifying companies.

The threshold for qualifying is set too low, according to organised labour.

Important aspects of the new minimum wage

Due to its contentious nature the debate over the minimum wage amendments which became effective on January 1st 2019, the topic continues to lead news highlights. Theoretically, there should be agreement that the effects of the increase should result in benefits to the entire country but yet, and as usual the battle of Labour vs Business vs Government persists as each party remains squarely in their own corners with their opinion of the amendments. Leading from their corner, the second largest labour federation, the South African Federation of Trade Unions, SAFTU, has branded the new wages as being tantamount to slave wage, while COSATU trade union federation reports that they believe that 6.4 million employees would undoubtedly benefit from the amendments, welcoming it is as “a major cash injection into workers’ pockets”. Government praises the increase as being the catalyst for change to the lives of millions of South African’s and in an election year, what better assurance to present. Business on the other hand, predicts continued loss of jobs perpetuating the already exhaustingly high unemployment rates. Stating the minimum wage will ultimately be detrimental to the South African economy and productivity within the country. Currently the South African economy has reported just 0.7 percent growth during 2018, and an unemployment rate of 27%. The knock-on effect of which certainly does not perpetuate growth and development and which affects the entire country as a result.

National Minimum Wage Developments

National Minimum Wage

November 2017 has seen some exciting developments regarding the National Minimum Wage. Cabinet has approved the National Minimum Wage Bill, Basic Conditions of Employment Amendment Bill as well as the Labour Relations Amendment Bill. The Bills have been Gazetted, and open for public comment before being signed off by the President.

SA Payroll Association

SA Payroll Association News & Training

NEWS FROM SA PAYROLL ASSOCIATION

COID Salaries Ceiling: This has increased to 403 500.00 with effect 1 April 2017

COID Compensation Benefits: Increased effective 1 April 2017. The details can be seen here

UIF: Still no increase in the earnings contribution side of UIF.

SA PAYROLL ASSOCIATION

The Directors of the South African Payroll Association are excited to announce the SAPA Conference 2017, scheduled for:
6 – 7 September 2017 at Emperors Palace in Johannesburg, 12 September 2017 in Cape Town and 14 September 2017 in Durban.