Industrial Psychology Consultants (IPC) carried out a survey on payment of salaries in forex. The aim of the survey was to understand the prevalence of payment of salaries in hard currency and how companies are financing these practices.
The economy has experienced significant changes since July 2018. The introduction of the Transitional Stabilisation Program by the Minister of Finance and Economic Development followed by the monetary policy by the Reserve Bank has brought in new challenges for businesses. Whilst the policy interventions aimed to stabilise the economy and encourage growth, the economy appears non-responsive and as a matter of fact continued to deteriorate. Of particular concern is the exchange rate of both the formal and informal market that continues to devalue the new RTGS currency. This is causing inflation.
Employers are making adjustments to salaries to cushion their employees against the loss in value. However, many organisations have not yet made any permanent changes. The findings presented in this report should therefore not be seen as definitive and permanent. The economy is still volatile and unpredictable, therefore any decision pertaining to remuneration must be done after having done a proper assessment of the decisions impact on your ability to pay and sustainability.
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