Would you believe it, South African salaries are on the rise for the second consecutive quarter of 2025. According to the PayInc Net Salary Index, improved average salaries in Mzansi reflect labour’s stubborn resilience to current economic headwinds.
Specifically, average net South African salaries sit at R21 428 in September 2025. This represents a 0.3% increase on August’s figure. And a 2.3% improvement on the same figure in 2024. Better still, this is a 4.3% improvement over the course of the first nine months of 2025.
SOUTH AFRICAN SALARIES RALLYING
And there’s more good news from the PayInc Net Salary Index. Its data suggests that the number of South African salaries paid increased by 175 000 in 2025 (more than 55 000 per quarter). This signifies worthwhile positives for job creation, even though Stats SA’s official unemployment rate continues to worsen at around 33% .
However, high inflation is still killing South Africans’ ability to spend and save their money. Therefore, even though salaries are increasing, the net effect is less impressive. In real terms, which accounts for inflation of 3.1% so far in 2025, South African salaries only increased marginally by 0.2% month-on-month, to R20 806 in September 2025.
WELCOME CHANGE
Nevertheless, economists insist that this positive trend for South African salaries looks like it will continue into 2026. Industry data suggests Mzansi will settle on an average salary increase of 5% by the end of year. But it will have to if inflation stays around the average predicted figure of 4.3% by experts.
Meanwhile, the South African Reserve Bank (SARB) hopes to see consumer inflation anchored around the lower end of its 3%-6% target band. Creating a lower-inflation environment will be challenging and take time in South Africa. Even if recent data shows early signs of moderating inflation expectations, the road will be long.
What do you think? Are South African salaries competitive? Or do they mean little if inflation keeps rising like it is? Let us know in the comments section below …
