South Africans are earning more, so why does it feel like less?

South African salary earners are taking home slightly more money, but their buying power continues to fall

South African salary earners are taking home slightly more money, but their buying power continues to fall as inflation outpaces wage growth.

According to the latest PayInc Net Salary Index, average nominal net salaries increased to R21 598 in June 2026, up 0.4% from May.

However, salary growth remained weak, with salaries rising by just 0.5% compared with a year earlier, while real take-home pay declined by 3.6% over the same period.

Shergeran Naidoo, Head of Stakeholder Engagement at PayInc, said the increase in nominal salaries masks the financial pressure facing households.