Page 4 - KZN Business Sense - Vol4 No1 - eBook

(Continued page 2) ... combined annual income of up SALARY TRENDS IN 2018
to R 350 000.
Therefore, it is critical that
Government provides and National Health Insurance he HR Business Forum of several factors are currently broad-based tax increases. A
maintains a safe, secure, The Durban Chamber calls the Durban Chamber of affecting the economy, which will VAT increase is on the cards,
reliable, effective, efficient and for deeper engagement between TCommerce and Industry's have an impact on salary increases. as the National Treasury seeks
fully integrated infrastructure private and public sectors to February meeting topic was These include: to plug a multibillion-rand
network which meets the needs provide healthcare access to ‘Salary Trends in 2018’. Lionel van ■ An expected improvement revenue shortfall.
of individuals and businesses, all in SA. The good health and Schalkwijk, regional manager, PE GDP growth of 1.4% in 2018, ■ Water Security
while simultaneously facilitating wellbeing of the workforce is a Corporate Services, presented on: and 1.6% in 2019. However, ■ The impact of Eskom’s liquidity
local economic development critical factor for productivity ■ Actual and predicted salary/ this rate is far below the 5.6%
and supporting government and growth. wage increase trends for increase required to address the Top Salary Trends
strategies and plans. The focus 2017/2018 unemployment crisis. The top salary trends for 2018
on skills for the digital age In conclusion, the Durban ■ Factors impacting on salary/ ■ The strengthened rand, which include the need to:
is critical to the attraction of Chamber acknowledges the wage increases in South Africa is a result of Cyril Ramaphosa’s ■ Address gender and race pay
investment into SA. remarks by President Cyril ■ Update on the national appointment as president of gaps
Ramaphosa to fight corruption, minimum wage legislation to the ANC. However, exchange
SMMES fraud and collusion. This be implemented in May 2018 rate fluctuations are still ■ Provide equal pay for work of
The Durban Chamber reaffirms the Durban Chamber’s occurring. equal value and/or grading
acknowledges President vision: ‘in Business for a Better Major factors impacting on salary ■ The outlook on food inflation, ■ Provide top performers with
Cyril Ramaphosa for his World’. Very clear intentions increases which is not expected to larger increases or cash bonuses
stated commitment to small have been communicated by Van Schalkwijk said that the change significantly in the near ■ Develop innovative cost saving
business development and for the President to deal with economy is expected to recover to medium term. plans that do not lose jobs.
undertaking to set aside at least corruption both in private moderately in 2018. However, ■ The 2018/19 Budget, would see ■ Get set for the Gig (collaborative
30% of public procurement and public sectors and this is economy)
to SMMEs, cooperatives and encouraging, as is bringing Actual and predicted salary/wage
township and rural development governance in SEO leadership increase trends for 2017/2018
enterprises in addition to structures.
reducing regulatory barriers. The majority of organisations are
He has promised to roll out the President Ramaphosa has budgeting increases between 4%
red carpet for SMMEs instead thrown down the gauntlet of and 7% depending on staff category
of the usual red tape and the ‘Thuma Mina’ [send me], thus and skills shortages but a large
Chamber will certainly hold challenging each one of us to proportion of survey participants
him to delivering on this key put our shoulder to the wheel (42%) are expecting increases to
and fundamental issue for our to lift South Africa out of the be between 6.1% to 7% with an
members. economic quagmire. As the average of 6.3%. The higher rate
Durban Chamber of Commerce is more relevant for areas of skills
Fees Must Fall and Industry, we commit to shortage and negotiated rates
with labour unions. Most wage
In a bid to address the fees- supporting this vision and we settlements resulted in single digit
are ready to ‘Seize the day!’ as he
must-fall movement, we are has implored us to do.  increases in 2017. 
pleased that government has
significantly prioritised higher For more information contact
education by starting this year Musa Makhunga, President of Lionel van Schalkwijk
to provide free education and the Durban Chamber of Commerce T: 031 700 1597 | lionelvs@pecs.co.za
training to first year students www.durbanchamber.co.za www.pecs.co.za
from households with a gross
PUT PAYROLL ON A BANTING DIET

Tanya Tosen, 1. Do your employees understand The South African Reward human resources, finance and There are two types of
Remuneration their payslip and remuneration Association (SARA) has its even shop stewards into one remuneration experts – those
Consultants package structure? annual Tax Budget Update room. These deliver incredible who determine how much you
countrywide starting on 6
should pay an employee (the
value to transform a lagging
T he way The typical questions usually March 2018 in Cape Town, 8 payroll department or just quantitative side) and those
asked are:
making sure you offer the best in
March 2018 in Port Elizabeth,
who are experts on how the
the market.
■
Why are my taxes so high?
the final session being held in
delivered to the employee for the
employers ■ Other employers give better 13 March 2018 in Durban with determined quantum should be
feel about take-home and/or better Johannesburg on the 15 March 2. SARS Payroll Audit best possible value (the qualitative
their payroll benefits – what are we missing? 2018. This is not a normal budget Everyone who has been through side). The tools of package
department ■ What is the tax on my increased update but is specifically aimed a SARS specialist payroll audit structuring include package
is best salary? at how the Budget Speech, will know this is a completely structuring tools, travel allowance
equated delivered on the 21 February different exercise than the calculators, company vehicle vs
to the ■ What is the amount of tax on 2018, tax law changes, impacts “assurance check” done by travel allowance comparisons and
banting diet – no one naturally my bonus? employee remuneration and external auditors. SARS is using total reward statements. These are
cares about dieting, but everyone is ■ Why does my tax vary from take-home pay. SARA also has a fine-tooth comb to assess and used as part of the recruitment/
worried that someone else is getting month to month? a two-day Package Structuring find any type of exposure that onboarding process and “before”
it right, in a better way. ■ Why must I pay money to SARS and Cost to Company workshop can be used to generate additional payroll i.e. to structure packages
when submitting tax returns? annually, for which the dates revenue to fill their deficit. correctly before loading onto the
Payroll departments have have yet to be confirmed. SARA payroll system. 
evolved over the years, from data Payroll professionals often is a non-profit organisation, The upside of an independent
processing to now being one of rely on the payroll system to so the events are either free payroll audit is not only ensuring
the most targeted SARS audit provide answers. They are for members or a nominal fee full compliance with employees’ tax, For more information please contact
Tanya Tosen, she is a remuneration and
areas as well as having strategic normally disappointed, as the payable to cover costs. Details IRP5 codes and other risk items; employees’ tax expert.
importance, in whether you payroll system is only as good may be obtained from tanya@ but also includes a gap analysis on Email tanya@remunerationconsultants.co.za
are remunerating employees as as the data captured into the remunerationconsultants.co.za. whether internal processes may or call 084 955 0796.
optimally as possible. system. A remuneration and be improved as well as missed
employees’ tax expert are the more The organisation also offers opportunities on employee
The concerns of business correct skillset(s) to assist, thus more bespoke training solutions remuneration structuring.
owners, executives and heads understanding the inner workings available for employers, where
of payroll will broadly fall into of remuneration methodology and all stakeholders may attend. This 3. Package Structuring –
three categories: package structuring tax law. would include getting payroll, Qualitative Approach

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