Average Salary in South Africa

According to the latest data provided by Stats SA in November 2023, the average salary in South Africa is R26,817 (1,501.62 USD) per month. The yearly average salary equivalent is R321,804 (18,019.45 USD).

However, like in most countries, the average salary in South Africa depends on multiple factors such as education level, the industry someone is working in, its specific average salary levels, or the region. Let’s explore all these factors next.

Please note:

• All data in this article are based on official statistics and reports, such as those from the Statistics South Africa (Stats SA) and World Bank reports.
• The official currency of South Africa is the South African Rand(R, ZAR).
• All figures in the article are gross salaries.
• One ZAR or R equals 0.056 USD when writing this article. Please double-check the exchange rate at the time of reading.

Key statistics and macros

• Average annual salary: R321,804 (USD 18,019.45). Source: Stats SA
• Average monthly salary: R27,450 (USD 1,501.62). Source: Stats SA
• Median salary: R27,200(USD 1,533.05). Source: Salaryexplorer
• Minimum wage: R27,58 per hour (USD 1.54). Source: Ministry of Labor
• Gender pay gap: 7.9 %Source: World Economic Forum

Average salary in South Africa

It’s a known fact that the average salary in a country is affected by a country’s economy, in this case, South Africa’s economy. Therefore, when you find data on average salaries, it’s best to place it in context with the country’s economy and make a factual salary comparison with other countries.

The average monthly salary in South Africa in 2024 is R27,450 (1,501.62 USD), while the yearly average salary was R321,804 (18,019.45 USD), according to Stats SA. The same monthly average salary in South Africa in November 2023 was R26,817, according to Statista, noting a clear salary increase in wages in the last year.

Source: Statista

Median salary 

The median salary in South Africa is R27,200 in 2024, according to Salary Explorer. The median earnings generally offer a more realistic view of the earnings of a population, as it is the middle point of salary distribution. The average salary is skewed as it is a reflection of the highest and the lowest salaries, but the median shows that 50% of the population earns below the median, while 50% of the population earns above the median.

Therefore, 50% of the southern Africans earn below R27,200, while the remaining 50% earn more than R27,200.

Minimum wage

According to the Commission for Conciliation, Mediation and Arbitration (CCMA), the national minimum wage in South Africa as of March 2024 is R27,58 per hour, meaning that the monthly minimum wage is R4,779.38. The previous minimum salary in South Africa prior to March 2024 was R25.42 per hour; hence, the earning baseline has increased by 8%.

The minimum wage in South Africa is set by the South African government through its Department of Employment and Labour. The minimum salary in South Africa applies to all workers with any job title but excludes allowances generally paid by employers that enable employees to work. Examples of these are transport and equipment, bonuses, tips, and food.

There is an exception, however, for workers employed in expanded public work programs, which are paid at a lower minimum rate of R15.16 per hour.

Average salary by region

When analyzing the average salary in South Africa based on someone’s province or location, be it cities like Johannesburg, Cape Town, or rural areas, there are evident disparities. The Quarterly Labour Force Survey (QLFS) revealed data on the median earnings of South Africans based on their geographical location, and the most striking location in 2022 was Gauteng.

In 2022, workers in the Gauteng region had a higher median (R7,500 per month) than any other province, while Limpopo had the lowest median wage per month. It’s important to note that part of Gauteng is Johannesburg, which is essentially the largest city in South Africa and part of the Johannesburg Metropolitan Municipality, the reason for which Gauteng is the richest region in South African.

Here is the table with only the 2022 data and provinces extracted:

Average salary by occupation

A report on employment statistics from 2022 released by Stats SA revealed that the median salary in South Africa is based on someone’s occupation. Here

Moreover, according to Salary Explorer, the average salaries based on occupation are as follows:

Average salary by industry

South Africa-based industries have their particularities, with utilities and extractive industries offering the highest paying jobs, while the retail and construction sectors typically offer lower average salaries. For that reason, you’ll find petroleum engineers and other roles in the electricity, gas, and water supply industry leading with the highest monthly earnings at R46,033. These average salaries in South Africa are substantially above the overall formal non-agricultural industry average of R23,522.

Mining and quarrying is the second-highest paying sector at R28,537, and it reflects the historical importance of this industry in South Africa’s economy. At the lower end, wholesale and retail trade sectors, including hotels and restaurants, offer the lowest average earnings at R14,982, as well as the construction industry.

Interestingly, service-oriented sectors have relatively consistent wage levels, with community and social services at R27,684, financial services at R27,140, and transport and communication at R26,976, all hovering slightly above the national average.

Whether as job seekers interested in finding the most lucrative industries or as an employer looking to offer competitive salaries for skilled workers, here are the salaries based on industries in 2024:

Source: Quarterly employment statistics (QES) March 2024

Another report on Employment statistics shows that seven out of eight industries increased in average salary in south Africa in Q2 of 2024. The only industry that saw a decline was the electricity industry.

Gender wage gap

According to a UN Women Org study made in South Africa, the adjusted gender pay gap is 7.9%. This means that overall, women earn an average income of almost 8% less than the income of men for the same job.

What’s interesting, however, is that the unadjusted or raw gender gap in South Africa is about 20.1% when calculated at an hourly level. Also, women work fewer hours than men across all age groups. I’ve gathered some interesting stats that reflect the gender pay gaps in South Africa.

Women earn less than men by:

• 11.4% in the community, social, and personal services sector;
• 85.6% less in the construction sector;
• 94.6% less when working in a private household;
• 74.5% for domestic workers and the smallest;

Interesting labor market facts about South Africa

• High unemployment rate: South Africa struggles with its unemployment rate, which persistently stood at 31.9% in 2023. At the same time, youth unemployment is significantly higher than 31.9%. To solve these challenges. South Africa has to fix structural issues in its economy.
• Low self-employment levels: Self-employment is factors only 10% of jobs in South Africa, much lower than in peer nations. One helpful measure South Africa could take is to promote entrepreneurship among young people as a way to reduce unemployment.
• Average salary trends: The average monthly salary in South Africa is R27,450, translating to an annual salary of approximately R321,804. However, rising inflation has outpaced nominal wage increases, leading to declining real incomes, according to the World Bank.
• Industry-focus on skills: Employers in South Africa show a high demand for skilled workers in engineering, the information technology sector, and sales roles, with plans to increase workforce sizes in these areas in the following years, according to Businesstech.co.
• Economic challenges and opportunities: TheWorld Bank reveals that South Africa’s GDP growth is still tied to household consumption, which has been constrained by declining real wages. Despite these challenges, industries like mining, technology, and renewable energy offer potential for economic recovery, according to the same World Bank report.
• Worker protections: South Africa has provisions for paid annual leave and mandatory worker’s compensation insurance, facts that enhance job security and workplace safety.
• Optimistic business outlook: The sameBusinesstech.co report revealed that many businesses in South Africa report improved confidence in the economic outlook for 2024, with a focus on retaining talent and expanding operations.

FAQ

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Sources: 

Quarterly employment statistics (QES) March 2024

https://africa.unwomen.org/sites/default/files/2024-03/brief-gender_pay_gap_and_labour_market_inequalities_in_south_africa.pdf

https://africa.unwomen.org/sites/default/files/2024-03/brief-gender_pay_gap_and_labour_market_inequalities_in_south_africa.pdf

https://www.salaryexplorer.com/average-salary-wage-comparison-south-africa-c201