PayInc index shows modest salary gains

SOUTH Africa's average net salary edged higher in August 2025, but signs of job losses among higher earners remain a concern, according to the PayInc Net Salary Index (formerly the BankservAfrica Take-home Pay Index).

- YOGASHEN PILLAY

The index rose marginally to R21 222 in August, up 0.2% from July and 2% higher than a year earlier.

The upward trend evident in net salaries during 2024 has spilled over to 2025, with the average nominal net salary in the first eight months of 2025 up by 4.6% compared to the corresponding period in 2024.

"The recovery in salaries reflects the moderate improvement in economic activity and the economy's resilience, despite multiple challenges," said Elize Kruger, an independent economist.

Kruger added that the number of salaries paid signals that just more than 216 000 additional salaries were paid, cumulatively, in the first eight months of 2025.

"According to the revised PayInc sample, fewer salaries were paid in the income range between R40 000 - R100 000 year-to-date, suggesting job losses in those categories, while the bulk of additional salary payments were in the lower income band.