Salaries
Take-home salaries in South Africa have shown their highest average increase in the last decade. Image: File

Home » SA salaries climbing — and the outlook keeps improving

SA salaries climbing — and the outlook keeps improving

Salaries in South Africa are seeing a boost in 2025, with the latest report showing the strongest take-home pay increase since 2015 — and the outlook continues to improve.

01-08-25 17:08
Salaries
Take-home salaries in South Africa have shown their highest average increase in the last decade. Image: File

Despite the tough economic climate in 2025, South Africans are finally seeing some positive news on the salary front. BankservAfrica’s latest Take-home Pay Index shows that salaries are rising, with more gains expected.

Even better, disposable income has improved after three months of slower growth. BankservAfrica attributes this to falling inflation and declining interest rates. As a result, average take-home pay in June 2025 rose to R17310, significantly higher than the same period in 2024.

SALARIES IN SA IN 2025

salaries in SA
You can give the stokvel a rest, as salaries in SA show encouraging improvement. Image: File

Impressively, average salaries in SA of R17 310, are some R1 800 higher per month than they were at the same time last year (R15 514), reports BusinessTech. BankservAfrica says a moderation in consumer inflation (CPI) has also had a positive impact on the purchasing power of South African consumers.

In fact, the past year has been the best since 2015, with salaries in SA increasing by 1.5%. Better still, further indicators suggest that the average salary increase could crest 5% by the end of 2025. Furthermore, the SA Reserve Bank (SARB) says a favourable inflation environment may also create further room to cut interest rates. All goods things for struggling South Africans.

RELIEF TO INDEBTED CONSUMERS

Improved salaries in SA in 2025 are providing relief to indebted consumers and boosting the economy, too. Indicators from Stats SA show that retail sales have improved in the first five months of the year, by 4.3%. However, economists stress that the year is still potentially vulnerable from a geopolitical, global trade, and tariff war point of view.

Uncertainty between the United States and South Africa over the tariff landscape from today, Friday 1 August 2025, represents a growing concern for the economy’s trade outlook. It is therefore of utmost importance that government prioritises diplomatic engagement with the US. Doing so could avert potential job losses in the automotive and agriculture sectors.