Pink tax causes financial pain

Posted on August 8th, 2018 |

In light of Women’s Month, Sanlam commissioned ImagineNATION Alliance research house to conduct a survey with a sample of 1 000 – 500 men, 500 women – to delve more deeply into pink tax in SA.

Whereas 93,4% of the women polled said they spend over R100 on monthly toiletries, only 76% of men do. More than 30% of women reported spending R1 500-plus annually on medical screening, with the figure for men being just 16%.

Code for Africa, a gender pay gap tool based on the World Economic Forum’s 2017 Gender Gap Report, found that South African men earn an average of R6 607,25 pm more than women. This equates to the sixth-largest pay gap in Africa. The research identifies multiple factors behind this, including the fact that women tend to work in industries with lower average pay and have childcare commitments.

Danelle van Heerde, Head of Advice Processes at Sanlam Personal Finance, says, ‘To drastically oversimplify the situation, women are generally earning less and paying more.

‘Add to this the fact that women generally pay more than men for basic monthly necessities and one begins to perceive the full spectrum of challenges to women achieving financial independence.’

Danelle says Sanlam will use the survey information to create awareness and encourage women to make the best possible financial decisions in a challenging environment.