Despite a slight dip in inflation, South Africans' real take-home pay continues to decline, raising concerns about economic stability.
South African salary earners remain worse off than they were a year ago, despite getting their first monthly increase in real take-home pay in nine months.
The average real net salary was R20,269 in July, 2.2% lower than a year earlier, according to the latest PayInc Net Salary Index. Real salaries increased 0.4% from June, helped by a slowdown in inflation.
The index, which tracks the average net salaries of about 2.1 million South African salary earners, shows that purchasing power has remained under pressure during 2026.
In nominal terms, before taking inflation into account, the average net salary increased to R21,642 in July, 0.2% higher than in June and 2.2% above its level a year earlier.
