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The Citizen
25-06-2025
- Business
- The Citizen
Take-home pay slides for third month with grim job opportunities and earnings
Are you earning the average take-home pay of R17 296 and is it enough to cover all your expenses or are you affected when it decreases? The average take-home pay slowed for the third consecutive month in May, reflecting the impact of a subdued economic environment with stalled growth in the first quarter and a weakening global outlook, currently fuelled by the heightened volatility in the Middle East. According to the latest BankservAfrica Take-home Pay Index (BTPI), which tracks approximately 3.8 million salary earners in South Africa, the nominal average take-home pay decreased to R17 296 in May, 1.3% lower than the R17 532 registered in April, Shergeran Naidoo, BankservAfrica's head of stakeholder engagements, says. However, this figure remained significantly higher than the R15 903 recorded in May 2024. 'The upward trend in take-home pay from mid-2024 to early 2025 has been a positive development. However, recent months reflect a U-turn, with 2025 proving to be a volatile year so far, marked by multiple global shocks accompanied by a good dose of local challenges,' Elize Kruger, an independent economist, says. 'Downward revisions to global as well as local economic growth prospects have lowered confidence levels and put a pause on investment decisions, as investors and households hold back on their spending decisions. Together, these could hurt employment and earnings prospects of salary earners in the coming months.' ALSO READ: Capitec CEO tops banking pay charts — but how do staff salaries compare? A look at how SA's top five banks pay Quarterly Employment Statistics show average take-home pay of R28 289 According to the Quarterly Employment Statistics for the first quarter of 2025, the average monthly earnings paid to employees decreased by 0.1% from R28 316 in November 2024 to R28 289 in February 2025. According to the BTPI, take-home pay, adjusted for inflation, increased by 1.1% in May to R14 832 compared to R15 003 in April, but remained 5.8% higher than year-ago levels. 'The significant moderation in consumer inflation continues to have a positive impact on salary earners and their purchasing power, with the latest headline inflation figure for May 2025 at only 2.8%. 'However, the recent spike in international oil prices, due to the escalating conflict in the Middle East, could result in higher-than-expected headline inflation in the coming months and into 2026, Kruger says. She points out that the international Brent Crude Oil price increased to around $78/barrel after the US's attack on Iran's nuclear facilities, but talks about a ceasefire quickly triggering a reversal with oil prices dipping below $70/barrel again. 'Against expectations and despite the global volatility, the rand exchange rate remained notably resilient, providing a marginal offset of the higher oil prices on fuel price expectations. With the daily under-recovery at pumps running between R1.50/l for petrol grades and R2.70/l for diesel in recent days, it is clear that economic pain is on the radar for salary earners and the economy at large.' ALSO READ: Take-home pay increases significantly in 2024 Petrol increases coming that will affect take-home pay Kruger points out that petrol prices are forecast to increase by about R1/l and the prices for diesel by R1.30/l on 2 July, and further increases could be expected in August. 'These will push headline inflation upwards towards 5% by year-end, ahead of the 3.6% forecast for 2025. 'Concerningly, with the higher base calculation of 2025, the forecast average headline inflation for 2026 could be well above 4.5%, eroding the positive effects of lower inflation and likely triggering more conservatism from the South African Reserve Bank (Sarb). 'Any further monetary loosening looks unlikely at this stage, considering that the Middle East conflict is intensifying and the resultant negative impact on local fuel prices. Still, despite the negative developments outlined, 2025 is expected to be the second consecutive year of positive real take-home pay growth, supporting demand in the economy.' ALSO READ: Salary survey shows gap between increases and inflation narrowing Remchannel survey shows average salary increased by 5.82% in 2025 Meanwhile, the Remchannel Salary and Wage Movement Survey, a biannual report by Old Mutual published in April 2025, indicated that the average salary increased by 5.82% in 2025, compared to 6.09% in the previous year. Kruger says this trend suggests a more cautious approach by employers, who must also prioritise cost control amid a constrained economic environment. Interestingly, she says, the report revealed a reduced overall staff turnover rate of 13.5%, reflecting a market with fewer new job opportunities due to widespread downsizing by companies. She emphasises that this data confirms the financial pressures employees live with, as 39% of those who resigned were seeking better pay and career growth, while 31% left due to dissatisfaction with their current roles. 'With the local economy stalling in the first quarter and the weakening global backdrop adding to the downside scenario, the prospects of favourable earnings and employment opportunities have dimmed. ALSO READ: Salaries decreased by 2% in April, but higher than a year ago Policies must foster rather than deter employment in SA 'The latest Quarterly Employment Statistics survey released by Statistics SA indicated that total employment in the formal non-agricultural sector decreased by 74 000 in the first quarter of 2025, with employment falling from 10.65 million people in December 2024 to 10.58 million people by March 2025. 'According to the survey, 95 000 jobs were lost between March 2024 and March 2025. The Labour Force Survey, which also included the informal sector, agricultural sector and employment in households, echoed the pressure, showing that the unemployment rate ticked higher to 32.9% in the first quarter, with 291 000 job opportunities lost. 'The unemployment situation in South Africa remains a crisis and deserves to be one of the top priorities of government. It is imperative that government pushes forward on structural reforms across sectors such as energy and logistics. 'This could contribute towards solving our local predicaments, lifting the local economy's medium-term growth potential, but government must also ensure that policies and laws will foster rather than deter employment in South Africa.'
IOL News
25-06-2025
- Business
- IOL News
Take-home pay slides for the third month as job opportunities and earnings outlook remain grim
The nominal average take-home pay declined to R17 296 in May, 1.3% lower than the previous month as job opportunities and earnings outlook remain grim. Image: File The nominal average take-home pay declined to R17 296 in May, 1.3% lower than the previous month as job opportunities and earnings outlook remain grim, according to the latest BankservAfrica Take-home Pay Index (BTPI). The index tracks approximately 3.8 million salary earners in South Africa. However, this figure remained significantly higher than the R15 903 recorded in May 2024. This was third consecutive month that take-home pay slowed reflecting the impact of a subdued economic environment with stalled growth in quarter and a weakening global outlook, currently fuelled by the heightened volatility in the Middle East. Elize Kruger, an independent economist, said, 'The upward trend in take-home pay from mid-2024 to early 2025 has been a positive development. However, recent months reflect a U-turn, with 2025 proving to be a volatile year so far – marked by multiple global shocks accompanied by a good dose of local challenges." BankservAfrica said downward revisions to both global and local economic growth prospects have lowered confidence levels and put a pause on investment decisions, as both investors and households hold back on their spending decisions. Together, these could hurt employment and earnings prospects of salary earners in the coming months. In real terms, take-home pay, adjusted for inflation, moderated by 1.1% month-on-month to R14 832 in May 2025, compared to R15 003 in April, but remained 5.8% higher on year-ago levels. The significant moderation in consumer inflation continues to have a positive impact on salary earners and their purchasing power with the latest headline CPI figure for May 2025 at only 2.8%. However, the recent spike in international oil prices - due to the escalating conflict in the Middle East - could result in higher-than-expected headline CPI in the coming months and into 2026. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Petrol and diesel prices are forecast to increase by about R1/l and R1.30/l, respectively on July 2, and further increases could be expected in August. These will push headline CPI upwards towards 5% by year-end, ahead of the 3.6% forecast for 2025. Concerningly, with the higher base calculation of 2025, the forecast average headline CPI for 2026 could be well above 4.5%, eroding the positive effects of lower inflation and likely triggering more conservatism from the South African Reserve Bank. 'Any further monetary loosening looks unlikely at this stage, in light of the intensifying Middle East conflict and the resultant negative impact on local fuel prices. Still, despite the negative developments outlined, 2025 is expected to be the second consecutive year of positive real take-home pay growth, supporting demand in the economy,' says Kruger. Meanwhile, The Remchannel Salary and Wage Movement Survey, a biannual report by Old Mutual published in April 2025, indicated the average salary increased by 5.82% in 2025, compared to 6.09% in the previous year. This trend suggests a more cautious approach by employers, who must also prioritise cost control amidst a constrained economic environment. BankservAfrica said interestingly, the report revealed a reduced overall staff turnover rate of 13.5%, reflecting a market with fewer new job opportunities due to widespread downsizing by companies. This data confirms the financial pressures employees are under, as 39% of those who resigned were seeking better pay and career growth, while 31% left due to dissatisfaction with their current roles. BUSINESS REPORT Visit:
IOL News
24-06-2025
- Business
- IOL News
FSCA's Deepfake Admission Sparks Industry Outrage: Why is Banxso facing the brunt?
The FSCA has issued a stark warning about deepfake investment scams targeting South Africans, implicating high-profile figures. Yet, why is Banxso facing severe penalties while others evade scrutiny? Image: IOL / Ron AI The Financial Sector Conduct Authority (FSCA) has issued a damning public warning over a sophisticated network of deepfake investment scams exploiting high-profile South African figures, including President Cyril Ramaphosa, Dr Patrice Motsepe, Ms Leanne Manas, and Deputy President Paul Mashatile. But industry insiders are asking a pointed question: why is Banxso being crucified when others are quietly cautioned? This month's FSCA release formally acknowledges what many in the financial services industry have long suspected — that the problem of unauthorised third-party affiliates deploying AI-generated deepfake advertisements is industry-wide, not confined to one firm. Yet, in what critics describe as a deeply unbalanced enforcement approach, Banxso has seemingly become the regulator's scapegoat whilst other implicated platforms escape scrutiny. The Scale of Deception The FSCA's June 10, 2025, warning reveals the alarming sophistication of these fraud networks. Scammers are promising investors "unrealistic returns of between R13,000 and R17,000 per day, on an investment of R4,500" using fabricated endorsements from South Africa's most trusted public figures. In one particularly brazen deepfake video, Dr Motsepe appears to promote the investments, whilst Deputy President Mashatile is shown "confirming that the platform is authorised and that investors will receive returns". Another synthetic video features President Ramaphosa endorsing "guaranteed returns" — content so convincing it has fooled hundreds of potential investors. The FSCA explicitly states that "the individuals behind the platforms are not authorised in terms of any financial sector law to provide financial services to the public" and that these operators "failed to respond to FSCA queries." This represents a clear acknowledgement that multiple unauthorised entities are operating these schemes across various platforms and seemingly the FSCA has no way of combatting this. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Selective Enforcement Under Fire "Banxso acted swiftly when made aware of the deepfakes — refunding over R14 million of their own capital to affected consumers and laying criminal charges against the entity identified as operating the scam," an anonymous compliance expert said. "Other firms stayed silent or claimed ignorance. Why is only one company facing the full weight of enforcement?" Indeed, whilst the FSCA's press release highlights "platforms" plural using synthetic media to promote fraudulent investments, there is no specific mention of Banxso, nor any indication that Banxso continues to operate in connection with these ongoing scams. The regulatory warning appears to confirm that the deepfake problem extends far beyond any single financial services provider. Still, Banxso — a firm currently locked in multiple legal battles and awaiting judgment in a liquidation application that allegedly stems from the FSCA enforcement action — remains the only market participant to face such intense regulatory scrutiny and enforcement action. The company has not only ceased operations but has also proactively worked to trace the perpetrators of the fraudulent advertisements. Industry-Wide Problem, Singular Punishment "The FSCA is finally admitting that this isn't about one rogue actor. The deepfake threat is pervasive and sophisticated," said a fintech policy analyst. "These scammers are using unauthorised platforms, fake documentation, and AI-generated content to deceive consumers on a massive scale. But the regulator's response has been wildly inconsistent. Where is the fairness in targeting the one company that did the right thing?" The FSCA's own guidance emphasises that consumers should "verify that an entity or individual is authorised by the FSCA to provide financial products and services" and warns against "investment or trading offers on social media platforms or any unsolicited offers." This advice tacitly acknowledges that the deepfake threat spans multiple channels and operators — yet enforcement action remains concentrated on a single entity. Legal documents reviewed by IOL confirm that Banxso has initiated criminal proceedings against those behind what they believe to be the third party affiliate marketing scam, a fraudulent offshore entity believed to be at the centre of these AI-powered scams. The company has cooperated fully with authorities, and voluntarily compensated affected consumers — actions that stand in stark contrast to the unnamed platforms that continue operating without consequence. Questions of Proportionality "There is no question that regulation is necessary to protect consumers from these sophisticated fraud networks," added the regulatory source. "But we must ask who it truly protects when it turns a blind eye to some actors whilst hanging others out to dry. The FSCA's own warning confirms this is an industry-wide crisis, yet only one firm faces consequences for crimes it neither initiated nor condoned." The regulator's approach becomes more questionable when considering that the FSCA provides multiple verification methods for consumers to check authorisation status, including a toll-free number (0800 110 443) and online databases. These resources exist precisely because unauthorised operators are a systemic problem across the financial services landscape, not an isolated incident. Regulatory Inconsistency Under Spotlight The FSCA has advised the public to exercise "caution when considering investment or trading offers on social media platforms" and to verify that "the FSP number utilised by the entity or individual offering financial services matches the name of the FSP on the FSCA database." This guidance implicitly acknowledges that multiple unauthorised entities are exploiting regulatory gaps and consumer trust. Yet despite this industry-wide acknowledgement, enforcement actions remain conspicuously one-sided. Whilst unnamed platforms continue operating with apparent impunity, Banxso remains embroiled in costly legal proceedings despite its proactive response to the fraud network. "The selective enforcement sends a dangerous message to the industry," observed a former FSCA official. "Companies that cooperate, self-report, and take corrective action face harsher treatment than those who remain silent or deny responsibility. This approach will inevitably discourage transparency and cooperation in future incidents." The Broader Implications The FSCA's deepfake warning represents more than just consumer protection — it's an admission that South Africa's financial regulatory framework is struggling to keep pace with sophisticated AI-powered fraud networks. These criminals exploit the trust South Africans place in respected public figures whilst operating through unauthorised offshore entities that deliberately evade regulatory oversight. The scams described in the FSCA warning, promising guaranteed daily returns through fabricated celebrity endorsements, represent a clear and present danger to consumer confidence in legitimate financial services. Yet the regulator's response suggests a troubling pattern of selective enforcement that may ultimately undermine its stated objectives. Call for Balanced Response As artificial intelligence continues blurring the line between authentic and fabricated content, and as scammers become increasingly sophisticated in their tactics, the need for a coherent and even-handed regulatory response has never been more urgent. The FSCA's own warning confirms that deepfake investment fraud is a systemic threat requiring industry-wide vigilance and proportionate enforcement. But for now, Banxso remains the public face of a crime it neither initiated nor condoned whilst other implicated platforms escape meaningful scrutiny. The company paid dearly to correct a fraud perpetrated against it and its clients yet continues facing disproportionate regulatory consequences whilst the actual perpetrators operate with apparent impunity. The FSCA has not commented directly on the perceived imbalance in its enforcement actions, despite mounting questions from the financial services community about the consistency and fairness of its regulatory approach. With consumer protection hanging in the balance, South Africa's financial sector deserves regulatory oversight that targets actual wrongdoers. For verification of authorised financial service providers: Toll-free: 0800-110-443 Online: Click here. FSP Search: Click here. IOL
The Citizen
23-06-2025
- Business
- The Citizen
Generational wealth: Dis-Chem founder gifts sons nearly R7 billion in shares
The shares are equivalent to about a 25% stake in Dis-Chem. Dis-Chem founder Ivan Saltzman has taken gifting to a new level as he prepares the next generation of the family to become significant shareholders in the pharmacy group. Accelerating his succession plan, he has handed over 217 shares in the pharmacy to his two sons, Dan and Mark Saltzman. By the end of trading on 19 June, the shares were worth R6.8 billion. The 217 shares gifted to the sons were previously held by Ivlyn Local Investment Holdings (Ivlyn), also founded by Ivan and his wife, Lynette Saltzman. The shares are equivalent to approximately a 25% stake in Dis-Chem. New era for Dis-Chem The news was announced on Friday by the group, which is worth R27 billion. 'Ivan Saltzman is in the process of restructuring his interest in the Dis-Chem share portfolio, which is held through Ivlyn Local Investment Holdings Proprietary Limited. 'This restructuring involves the distribution 217 125 386 ordinary shares. All distributed shares will remain within the Saltzman family, thereby continuing current family ownership,' read the announcement. Ivlyn, before the transaction, held 29.31% of Dis-Chem, and it now holds 4.06%. While Dan and Mark each hold 12.62% of the group. NOW READ: 'No whites' letter cost Dis-Chem hundreds of millions in profit Third son already at Dis-Chem Before the transaction, neither of the two sons held an executive position or a board seat. However, this is expected to change as they become more involved in the group's operation. Another son of the Saltzman family, Saul, has held various positions within the group throughout his entire career and was appointed executive director alongside his father in 2022. Saul already has shares in the group. Dis-Chem was founded in 1978 and listed on the Johannesburg Stock Exchange (JSE) in 2016. 'The transaction will not affect the liquidity of the company's shares traded on the JSE.' Who owns the company? Ivan stepped down as CEO in 2023 after 45 years, succeeded by Rui Morais, who had previously served as the company's CFO. In 2021, the Saltzmans reduced their shareholding in the group from above 50% to 31% through several transactions. 7% was sold to the open market for almost R2 billion to interested investors, and a 3.75% stake was also sold to senior executives, including Morais. In the previous financial year, Ivan received total remuneration of R17 million, while his wife was paid R14 million. Despite Ivan's stepping down in 2023, he and Lynette remain actively involved in the company's operations. Saul was paid a total of R7.9 million. NOW READ: Dis-Chem's growth strategy challenges Clicks' dominance
IOL News
19-06-2025
- Business
- IOL News
World's oldest social housing still charges just 88 cents rent
A general view of the streets at the Fuggerei in Augsburg, southern Germany. Founded in 1521 by the wealthy businessman Jakob Fugger and believed to be the oldest such project in the world, the Fuggerei in the city of Augsburg provides living space for 150 residents facing financial hardship. Image: Michaela STACHE / AFP WHEN German pensioner Angelika Stibi got the keys to her new home in the southern region of Bavaria this year, a huge financial weight was lifted from her shoulders. Stibi has to pay just 88 euro cents (R17) a year for her apartment in the social housing complex known as the Fuggerei, where rents have not gone up since the Middle Ages. Founded in 1521 by the wealthy businessman Jakob Fugger and believed to be the oldest such project in the world, the Fuggerei in the city of Augsburg provides living space for 150 residents facing financial hardship. Consisting of several rows of yellow terraced buildings with green shutters and sloping red roofs, the complex still resembles a medieval village. "I had a truly wonderful life until I was 55," said Stibi, a mother of two in her 60s from Augsburg. Martha Jesse poses in front of her flat in the Fuggerei in Augsburg, southern Germany. Image: Michaela STACHE / AFP Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading After she was diagnosed with cancer, "everything went from bad to worse" and she was left with no other option but to apply for social housing, she said. Waiting lists are long for apartments in the walled enclave not far from Augsburg city centre, with most applicants having to wait "between two and six or seven years", according to resident social worker Doris Herzog. "It all depends on the apartment you want. The ones on the ground floor are very popular," Herzog said. Applicants must be able to prove that they are Augsburg residents, Catholic and suffering from financial hardship. Relative of Mozart Martha Jesse has been living at the Fuggerei for 17 years after finding herself with monthly pension payments of just 400 euros, despite having worked for 45 years. "Living elsewhere would have been almost impossible," said the 77-year-old, whose apartment is filled with religious symbols. The Fuggerei was heavily damaged in World War II but has since been rebuilt in its original style. Renowned composer Wolfgang Amadeus Mozart's great-grandfather, the mason Franz Mozart, was once a resident and visitors can still see a stone plaque bearing his name. For Andreas Tervooren, a 49-year-old night security guard who has lived at the Fuggerei since 2017, the complex is "like a town within a town" or "the Asterix village in the comic books". The meagre rents at the Fuggerei are all the more remarkable given its location an hour's drive from Munich, the most expensive city in Germany to live in and one of the most expensive in Europe. Rents have also risen sharply in many other German cities in recent years, leading to a wave of protests. But not at the Fuggerei, whose founders stipulated that the rent should never be raised. Daily prayer Jakob Fugger (1459-1525), also known as Jakob the Rich, was a merchant and financier from a wealthy family known for its ties to European emperors and the Habsburg family. Fugger set up several foundations to help the people of Augsburg, and they continue to fund the upkeep of the Fuggerei to this day. The annual rent in the Fuggerei was one Rhenish gulden, about the weekly wage of a craftsman at the time - equivalent to 88 cents in today's money. Although some descendants of the Fugger family are still involved in the management of the foundations, they no longer contribute any money. "We are financed mainly through income from forestry holdings, and we also have a small tourism business," said Daniel Hobohm, administrator of the Fugger foundations. The Fuggerei attracts a steady stream of visitors, and the foundations also receive rental income from other properties. In return for their lodgings, residents of the Fuggerei must fulfil just one condition - every day, they must recite a prayer for the donors and their families.
