PayInc Net Salary Index for May 2026 released on Wednesday raised alarm bells after data indicated that real salaries declined by 1.7% in the first five months of 2026, while at R20 262, real net salary reached its lowest level in approximately two years.
South African workers are facing growing financial strain as rising inflation, fuel costs and economic uncertainty continue to erode purchasing power, with real take-home pay falling to its lowest level in almost two years.
This is according to the latest PayInc Net Salary Index for May 2026, which showed that real salaries declined by 1.7% during the first five months of the year despite modest growth in nominal earnings.
The report found that the average nominal net salary increased marginally to R21,510 in May, up 0.2% from April and 0.9% higher than a year earlier. However, after adjusting for inflation, the average real net salary fell to R20,262, the lowest level recorded in approximately two years.
Shergeran Naidoo, head of stakeholder engagement at PayInc, said salary growth had failed to keep pace with rising living costs.
