Despite a slight rise in nominal salaries, South African workers face a significant decline in purchasing power 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.
Annual consumer inflation jumped to 5,0% in June 2026 from 4,5% in May 2026. This is the highest inflation print since June 2024 when the rate was 5,1%. Prices rose by 0,7% on average between May and June, the same increase recorded between April and May.
