Share

Sick leave costs SA billions

Johannesburg - The biggest job loss category in the country in August was permanent jobs, according to the latest Adcorp Index.

The index shows that the economy shed 34 654 jobs during August.

During the month 26 820 permanent jobs and 12 845 temporary jobs were lost.

Sharp job losses were observed in mining, construction, transport and financial services, amounting to 26 000 job losses between them.

The index also shows that in 2013, 3.96 million workers were absent due to sickness during the year, compared to 700 000 in 2000.

This represents an increase of 466% - despite the fact that the number of people employed was essentially flat over the decade.

“Due to the unplanned and unpredictable nature of sick leave, the knock-on disruptive effect on supply chains has probably been greater than these figures suggest," said Loane Sharp, labour economist at Adcorp Holdings.

"It may have led, in part, to the growing phenomenon of temporary or 'contingency' workers, many of whom fill in for other employees who are absent from work.”

Between 2009 and 2011, one-quarter of all workers claimed the maximum statutory allowance for sick leave, which is 36 days in a three-year cycle.

The index also shows that sickness-related absenteeism has increased fourfold since 2007. The resulting cost to the economy has been enormous.

The average output per worker in 2012 was R145 233 per year – or R586.19 per working day. In 2011 this loss of output due to sickness totalled R4.29bn.

Cumulatively, since 2000 the economy has lost R55.2bn in real terms due to sickness.

"Absenteeism arises for many reasons. In genuine cases of illness, the workplace and the nature of the work itself may be implicated in absenteeism," said Sharp.

In false cases, the take-up of statutory maximum sick leave allowances is a function of how generous those allowances are, and the degree to which absenteeism is monitored and controlled.

“It is alarming that sick leave in South Africa has been rising continuously over the past decade, and at present shows no signs of reversing,” said Sharp.

- Fin24


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.01
+1.1%
Rand - Pound
23.79
+0.7%
Rand - Euro
20.40
+0.8%
Rand - Aus dollar
12.40
+0.7%
Rand - Yen
0.12
+1.2%
Platinum
925.50
+1.5%
Palladium
989.50
-1.5%
Gold
2,331.85
+0.7%
Silver
27.41
+0.9%
Brent Crude
88.02
-0.5%
Top 40
68,437
-0.2%
All Share
74,329
-0.3%
Resource 10
62,119
+2.7%
Industrial 25
102,531
-1.5%
Financial 15
15,802
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders