SA salaries increasing faster than inflation

Working South Africans are, on average, starting to feel a bit of breathing room when it comes to what they're taking home at the end of the month.

Latest figures show wages are growing faster than inflation, meaning take-home pay is actually going further than it did a year ago.

The Paying Net Salary Index shows people earning between R5,000 and R100,000 a month saw increases, in real terms, of 0.5% in 2025, marking the second consecutive year of proper income growth.

Independent economist Elize Kruger says this marks a meaningful shift after a long period where the rising cost of living wiped out raises.

"If you look at the latter part of last year, salaries did flatten somewhat compared to earlier in the year. In the first half of the year, increases were about 4.7%, and then the full year's numbers came out at about 3.7%."

But, it's useful, says Kruger, to look at increases as an annual average, rather than quarterly.

"The 3.7%, compared to 4.6% in the previous year, is somewhat of a moderation, but also a continuation of growth in salaries."

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At the same time, the South African Reserve Bank (SARB) wants to limit inflation expectations, notes Grootes, suggesting that the impact would be smaller increases for workers.

Kruger says that while wage increases are steadier, employers are being cautious but fair.

To listen to Kruger in conversation with 702/CapeTalk’s Stephen Grootes, use the audio player below: