Workers in South Africa are taking home less pay.
The latest BankservAfrica Take-home Pay Index (BTPI) has shown that the average salary slipped to R17 144 in July 2025 – down 1.1% from June and almost 7% lower than February.
The drop comes as households juggle 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.
Once inflation is factored in, take-home pay averaged R14 660 in July, down slightly from June but still higher than a year ago. With inflation forecast at 3.5% in 2025 and average salary increases above 5%, workers are still set for a second year of real growth in buying power.
Despite this, higher municipal tariffs are eating into those gains. July is the month many metros hike service charges, often far above inflation.
“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.
Has your salary felt the pinch?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1
Subscribe to The South African website’s newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
