Newsletter: June 2017

NEWSLETTER

(Number 96 – June 2017)

 

Vital statistics:

CAP determination 30 April 2017:  R259 810
CPI year-on-year April 2017:   5,3%
RSA long bond yield May 2017:   8,6%
Real rate of return (8,6 less 5,3):   3,3%
ABSA Property Index October 2016  -0,3%
Houses less than 140 square meters  +2,1%

Expenses paid by RAF undertaking:   For many years it has been the practice of the RAF to pay necessary expenses such as househelp, handyman, gardener, and travel costs by way of undertaking as and when such expenses have been incurred.  However, in Mphirime v RAF (unreported 916/2014) [2016] ZAFSHC 24 (25 February 2016) it was ruled that such costs are not medical expenses and thus not to be paid by way of undertaking but by way of capitalised lump sum. This ruling was well received and applied fairly quickly to a substantial number of settlements.  

Barnard v RAF 2017 (1) SA 245 (ECP) in the same year ruled the reverse, that payment of non-health services such as househelp, handyman, gardener, and travel costs should be by way of undertaking.  Doubtless this issue will soon find its way to the SCA.

The earnings data hoard:  STATSSA has for decades been collecting earnings data as regards the entire working population of South Africa.  More recently such data has become available for detailed analysis.   Such figures are much more relevant for damages claims than the overstated Peromnes/FSA data so widely used by industrial psychologists (see Quantum Yearbook 2017 at page 129).  The tables below illustrate the range of earnings information now available:

Peromnes  Pater-son/FSA  STATSSA earnings CORPORATE earnings  
level Level  R1000 p/a at July 2017   R1000 p/a at July 2017  
    LQ MED UQ LQ MED UQ
Semi-skilled              
14 B3 79 123 169 191 220 246
Skilled              
10 C3 125 197 271 415 466 555

Middle
management

             
6 D3 197 314 434 969 1114 1370

 

 Earnings statistics from STATSSA March 2017   
   LQ (Rpa)  MED  (Rpa)  UQ  (Rpa)
 Less than Grade 12   
 20  15,113  23,450  39,331
 25  17,073  28,809  49,747
 45  21,103  41,347  81,826
 55  21,952  44,894  94,933
 Grade 12      
 20  20,734  35,492  65,000
 25  23,695  45,600  94,120
 45  47,248  104,814  220,155
 55  62,608  140,164  286,096
 Grade 12 with Certificate   
 25  31,853  72,329  143,707
 30  42,386  97,407  188,357
 45  67,365  146,869  277,955
 55  80,759  167,161  315,860
 Grade 12 with Diploma   
 25  53,526  110,276  199,660
 30  79,036  150,873  268,213
 45  116,039  207,780  362,103
 55  121,212  213,971  370,288
 Bachelor’s Degree   
 25  93,475  183,194  323,770
 30  133,542  253,146  441,605
 45  174,956  326,549  586,431
 55  -  -  591,181
 Honors Degree and Postgraduate Diploma   
 25  97,393  191,119  335,345
 30  137,841  259,805  458,981
 45  177,426  332,521  610,889
 55  -  -  615,852
 Masters and Doctorate      
 25  114,956  222,039  373,215
 30  193,253  381,453  689,322
 45  277,667  554,331  1,078,285
 55  -  -  1,091,222

 

It is intended to include summaries of the SATSSA data in the Quantum Yearbook for 2018.  For more comprehensive and detailed tables please refer to Jaen Beelders of This email address is being protected from spambots. You need JavaScript enabled to view it. (tel: 061-4104659).

Government budgeting guidelines:  A large proportion of accident victims are Government employees.  It follows that estimating their earnings is an important aspect of claims assessment.  The Government guidelines for budgeting issued June 2016 recommend that salaries be projected at 1% per year above inflation in addition to notch increases; medical aid contributions to be projected at 2½% per year above the rate of inflation; and the housing allowance in line with inflation.

 

FINIS