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Johannesburg - BDO South Africa, a regional association of accounting firms, said the cost of an extra public holiday as declared by the presidency on Wednesday would result in an estimated R7bn loss in turnover.
Acting President Kgalema Motlanthe declared December 27 a public holiday, the presidency said on Wednesday.
The declaration was made in terms of Section 2A of the Public Holidays Act, 1994 (Act No 36 of 1994).
Olivier Barbeau, chief operating officer at BDO SA, said: "South Africans typically enjoy 13 paid public holidays a year. This, on the face of it, is comparable to other countries like the USA, France and Singapore. But can we afford it?
"SA is still a developing economy with significantly high levels of unemployment. We have to compete globally with countries like China who have only four public holidays, and this results in the erosion of the little global competitiveness we have."
The group said some argued that an additional day's leave at a time when many businesses had closed for the year would not cost the economy and employers, but Barbeau said BDO SA believed this was not entirely true.
"It is important to remember that employees who would have used part of their annual leave entitlement for this day will now have an additional day's leave available to them next year, at the cost to the company.
"In addition, employers who would have carefully planned their labour force requirements for December will have to reorganise their work schedules at very short notice or face the additional overtime cost of labour (double pay)," Barbeau said.
Acting President Kgalema Motlanthe declared December 27 a public holiday, the presidency said on Wednesday.
The declaration was made in terms of Section 2A of the Public Holidays Act, 1994 (Act No 36 of 1994).
Olivier Barbeau, chief operating officer at BDO SA, said: "South Africans typically enjoy 13 paid public holidays a year. This, on the face of it, is comparable to other countries like the USA, France and Singapore. But can we afford it?
"SA is still a developing economy with significantly high levels of unemployment. We have to compete globally with countries like China who have only four public holidays, and this results in the erosion of the little global competitiveness we have."
The group said some argued that an additional day's leave at a time when many businesses had closed for the year would not cost the economy and employers, but Barbeau said BDO SA believed this was not entirely true.
"It is important to remember that employees who would have used part of their annual leave entitlement for this day will now have an additional day's leave available to them next year, at the cost to the company.
"In addition, employers who would have carefully planned their labour force requirements for December will have to reorganise their work schedules at very short notice or face the additional overtime cost of labour (double pay)," Barbeau said.
