Over half of Namibians face pay freeze, rising costs

More than half of working Namibians who earn above N$3 000 per month have not received a salary increase since 2023.

This is despite inflation and the cost of living constantly going up.

According to the Old Mutual Financial Monitor, 54% of Namibians have not received a salary increment, while about 14% are earning less money.

“Two thirds of working Namibians are earning the same or less relative to a year ago.

This indicates that a significant portion of Namibians would have experienced a decline in real earnings or spending power,” the report reads.

At the same time, the number of those financially dependent on those who work has gone up.

According to the report, six out of 10 Namibians now fall within the ‘sandwich’ generation, despite no change in their income.

“Financial dependency of both adults and children remains high among working Namibians, and it is evident across age and income levels,” the report reads.

Some 75% of employed Namibians have adult dependants who rely on them for financial support, which is an increase from the 71% recorded in 2023.

Meanwhile, 77% have children as dependants.

This can be directly linked to the high level of national unemployment, which currently stands at 36.9%.

Because of this, the majority of those working have had to downgrade their lifestyle by opting for cheaper TV streaming options and switching to cheaper retail brands.

The report shows that 56% of working Namibians’ household income only covers expenses, with very little to spare at the end of the month.

“Namibians continue to tighten their belts and adapt their lifestyles, with six out of 10 actively searching for products and services and comparing prices, especially for big purchases,” the report reads.

As of last year, a report by Cirrus Capital shows that about 25% of Namibians who earn an income are only left with about N$521 after major expenses monthly.

Meanwhile, 1% of income earners can afford to spend N$40 000 monthly.

Cirrus Capital says ‘income earners’ has been defined as having worked at least one hour in the past seven days for cash or in-kind payments, including subsistence farming for oneself.

Another 25% can only afford to consume N$1 185, while the rest can afford to spend between N$2 363 and N$16 269.

Additionaly, 90% of all those earning any sort of income cannot afford to spend more than N$5 000 monthly.

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