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 |
|||||||
| 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
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
