Are South Africans earning less? Let's look at salary trends and inflation
Lower inflation gave salary earners some relief in July, but South Africans' take-home pay remains lower in real terms than it was a year ago.
South African workers are earning less in real terms compared to last year, according to the latest PayInc Net Salary Index. The average real net salary fell 2.2% to R20,269 in July 2026, a year-on-year decline. Despite a 0.4% increase from June, real salaries have been under pressure due to inflation. Nominal salaries rose 0.2% to R21,642, but growth slowed to 1.6% for the year, compared to 3.7% in 2025.
Economist Elize Kruger noted that wage growth remains weak, stating that South African households are navigating a challenging economic landscape. The recent slowdown in headline inflation to 4.3% in July, driven by lower fuel prices, provided relief to consumers. However, this improvement has not been sufficient to restore household purchasing power, which remains 2.2% below last year's level. Real net salaries are down 2.1% so far in 2026.
The relief from inflation may be short-lived, as rising international oil prices could reignite inflationary pressures. Wage growth also varies significantly across sectors, with private-sector salaries increasing by 4% in 2025, while public-sector workers saw a 8.6% rise. Kruger emphasized that sustained recovery in purchasing power will depend on stronger wage growth, stable inflation, and a healthier economic and employment environment.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
