South Africa's average nominal pay dips as economic challenges loom

SOUTH Africa's economic landscape is experiencing a nuanced shift, with BankservAfrica revealing that the average nominal take-home pay declined in March 2025.

- YOGASHEN PILLAY

The figure slipped to R17 811 from February's R18 272, marking a 2.5% decrease.

Despite this dip, when compared to R15 983 just a year ago, the average remains buoyed above last year’s levels—highlighting both resilience and the effects of ongoing economic pressures.

Shergeran Naidoo, head of stakeholder engagements at BankservAfrica, addressed the declining nominal pay, attributing it to intensifying economic headwinds that are impacting growth and consumer confidence.

"This raises concerns over potential impacts on employment and earnings in the coming months. However, Thursday's announcement to scrap the proposed VAT increase offers some reprieve," Naidoo said.

Elize Kruger, an independent economist affiliated with BankservAfrica, noted a tempered outlook moving forward, referencing both escalating trade tensions and growing political uncertainty as significant factors likely to affect consumer sentiment and, ultimately, the economy.