Bad news for salaries in South Africa

Workers in South Africa are earning less pay.

The latest BankservAfrica Take-home Pay Index (BTPI) shows that the average salary fell to R17 144 in July 2025, down 1.1% from June and nearly 7% lower than in February.

Households face this drop while struggling with a weak job market and rising municipal bills.

Salaries can’t keep up

The salary data points to fewer workers in higher-paying brackets (R40k–R100k) and more new jobs in lower ranges (under R10k and R20k–R30k). This shift has dragged down the overall average.

“Additional salaries at lower levels and losses at the higher income side could partly explain the depressed trend,” Economist Elize Kruger said in the report.

After accounting for inflation, take-home pay averaged R14 660 in July, slightly down from June but still higher than a year earlier.

With inflation projected at 3.5% in 2025 and average salary increases exceeding 5%, workers are set to enjoy a second year of real growth in purchasing power.

However, higher municipal tariffs are reducing those gains, as many metros raise service charges in July, often well above the inflation rate.

“Salary earners continue to grapple with the higher cost of living. This impact is felt more sharply in July – the month notorious for annual municipal tariff increases – and serves as a stark reminder that some costs continue to rise well above the country’s inflation rate,” Kruger added.