Bad news about salaries in South Africa

South Africans’ real take-home pay declined by 1.1% in May from the previous month, according to BankservAfrica.

The drop marked the third consecutive monthly decline in consumer salaries, reflecting the strain of a sluggish local economy and mounting global volatility, the Johannesburg-based lender stated in a press release on Wednesday. Its data tracks about 3.8 million salary earners in South Africa.

Real take-home pay totalled R14,832 in May, compared with R15,003 the month before, BankservAfrica said in a statement.

The gauge has yet to recover to the record R16,368 set in February 2021, in the aftermath of the Covid-19 pandemic, according to its data.

The month-on-month decline came despite a 5.8% year-on-year increase in average take-home pay, which continues to support household purchasing power, the bank said.

However, stagnant economic growth in early 2025 and persistent global headwinds are weighing on momentum.

“The upward trend in take-home pay from mid-2024 to early 2025 has been a positive development after some years of dismal growth,” said independent economist Elize Kruger. “However, recent months reflect a U-turn, with 2025 proving to be a volatile year so far.”

Downward revisions to both domestic and global growth are weighing on confidence and delaying investment decisions, which in turn are hampering economic activity, according to BankservAfrica.

Until clearer signals emerge, both households and investors are expected to tighten their belts, Kruger said.