The 49-day pay gap: why December salaries fall short.
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GUEST - Kabelo Makeke, head of personal and private banking at Standard Bank South Africa
With many employers paying December salaries as early as the 13th, the gap before the next payday is significant – 42 days for those usually paid on the 25th and 49 days for month-end earners.
The festive season adds financial pressure as South Africans stretch their December salaries while spending more than usual. Standard Bank’s analysis shows that South Africans spend their salaries faster in the last two months of the year. Interestingly, November salaries are spent faster than December’s. December salaries last slightly longer, with customers taking two to three extra days on average to spend 50% of their income compared to November. Higher middle-income and high-income earners take nearly twice as long to spend half of their December income—around 11 days compared to just six days for entry-level customers.
With many employers paying December salaries as early as the 13th, the gap before the next payday is significant – 42 days for those usually paid on the 25th and 49 days for month-end earners.
The festive season adds financial pressure as South Africans stretch their December salaries while spending more than usual. Standard Bank’s analysis shows that South Africans spend their salaries faster in the last two months of the year. Interestingly, November salaries are spent faster than December’s. December salaries last slightly longer, with customers taking two to three extra days on average to spend 50% of their income compared to November. Higher middle-income and high-income earners take nearly twice as long to spend half of their December income—around 11 days compared to just six days for entry-level customers.