Repo rate rise a last nail? – South Africans opting to work from home or quit their jobs

The repo rate increase by the South African Reserve Bank (SARB) may be the last nail in the proverbial coffin for many, as South Africans suffocate from the rising cost of living and growing inflation rates.

As the cost of living rose along with fuel, food, electricity and rates and taxes increases, it has become unaffordable to go to work, and many South Africans are opting to work from home or quit their jobs.

Maki Marish recently tweeted his cousin resigned as a baker because her take-home pay was R2,500 versus R3,200 to travel to work.

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He said his cousin has been through a tough time and was afraid to talk about quitting her job because it may impact her future job prospects.

Chris Badenhorst said he also quit his job because the travelling expenses surpassed his income.

“Eighty percent of my pay went to petrol, to the point where I didn’t have extra to buy plastic bags at Checkers for my groceries,” he explained.

Badenhorst said he started working online from home, but it didn’t work out because of all the load shedding.

“So, I have lost everything, every last thing. I even had to move back to my parents’ house and now live in a Wendy house in the backyard with nothing to show,” he said.

Badenhorst said the job hunting wasn’t going well, either.

“I do piece jobs here and there, when I get the opportunity. If I am lucky my income is R1,500 now,” he said.

Badenhorst said he has also been blacklisted.

“I’m 29 years old going on 80. I wish I was dead already,” he said.

READ MORE: Repo rate increase will hurt consumers with debt, but benefit those with savings

Danae Kloppers had a nail salon at home, but inflation had such an impact on her budget that she considered closing her doors.

Kenny Maloyi from Soshanguve said he was working on the streets of Sunnyside to help people park their cars to put food on the table.

He said he took home even less money than before, because taxi fares had increased.

“The taxi costs us R70 a day. They have increased it to R35 a trip. Every day I spend R70. So, imagine I make R200 for the day, then I only have R130 to take home,” Maloyi said.

He said he had to pay for electricity and food with the little money he had left after travelling.

Economist Dawie Roodt said it made more sense to resign in such cases.

“The reality is the world is changing. There is pressure from certain costs such as petrol but at the same time, there are opportunities to earn an income.

“But the nature of work is changing, we can work from home,” he said.

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