Real take-home pay falls to lowest in two years: Here's what the average South African now earns

Average take-home pay rose to R21,510 in May, but inflation pushed real earnings down to R20,262.

South African salary earners are losing purchasing power despite modest salary increases, with real take-home pay falling to its lowest level in about two years as inflation, higher fuel costs and economic uncertainty squeeze household budgets.

According to the latest PayInc Net Salary Index, the average nominal net salary rose to R21,510 in May, up 0.2% from April and 0.9% higher than a year ago. After adjusting for inflation, however, the average real net salary fell to R20,262, down 2.8% from May 2025 and the lowest level in approximately two years.

For the first five months of 2026, nominal net salaries increased by just 1.7%, while real salaries declined by 1.7%, signalling a challenging year for consumers after two years of relatively strong earnings growth.

“While nominal salaries have edged higher, the reality is that salary earners are losing purchasing power,” said independent economist Elize Kruger. “This is placing increasing strain on household budgets and is likely to weigh on consumer spending and broader economic growth during the remainder of the year.”