PayInc Net Salary Index points to firmer job market in 03 as salaries rise

THE PayInc Net Salary Index, which tracks the average nominal net salaries of approximately 2.1 million earners in South Africa, increased for the sixth consecutive month in September 2025.

- PHILIPPA LARKIN

This steady increase aligns with the gradual improvement in economic activity and reflects the labour market's resilience over recent months.

Shergeran Naidoo, the head of Stakeholder Engagements at PayInc, said, "The PayInc Net Salary Index reached R21 428, which was 0.3% up on August's level and 2.3% higher than a year ago."

The average net salary continues to strengthen, showing a 4.3% rise in the first nine months of 2025 compared to the corresponding period in 2024.

According to a PayInc Net Salary Index analysis of the number of salaries paid, just more than 175 000 additional salaries were disbursed during the first nine months of 2025.

Elize Kruger, independent economist, said, "While a welcome development, the official unemployment rate remains stuck at around 33%, as the economy, at current sluggish growth rates, is simply unable to create enough new opportunities to absorb all new entrants into the job market on an annual basis."

Still, the PayInc Net Salary Index signals an improved labour market in quarter three 2025. The average net salaries increased on average by 0.4% quarter on quarter, while around 48 000 more salaries were paid during the quarter.