There has been a rise in overall salary payments so far in 2025.
This is according to the PayInc Net Salary Index, a revamped version of the Take-home Pay Index from PayInc, formerly BankServAfrica.
The new study uses a revised sample and new methodology to deliver deeper insights into South African salary trends and the labour market.
Tracking the nominal net salaries of an estimated 2,1-million recipients earning between R5 000 and R100 000 per month, the revised PayInc sample for August showed fewer salaries were paid in the higher income range of R40 000 to R100 000 in the first eight months of 2025. Most salaries were paid in the lower income band of R5 000 to R10 000, followed by a smaller proportion in the R10 000 to R40 000 range.
“Calculated by dividing the total value of salaries paid into the bank accounts of employees, as cleared through PayInc, by the total number of salary payments, the resultant average reflects the underlying movements in the labour market,” explains independent economist Elize Kruger. “Furthermore, an analysis of salary payments shows that over 216 000 additional salary payments were recorded in the first eight months of 2025.”
The PayInc Net Salary Index increased marginally in August 2025.
“Monthly salaries reached R21 222, 0,2% up on July’s level and 2% higher than a year ago,” says Shergeran Naidoo, head of stakeholder engagements at PayInc.
The upward trend in net salaries seen in 2024 has continued into 2025, with the average nominal net salary in the first eight months rising 4,6% compared to the same period last year.
“The recovery in salaries reflects the moderate improvement in economic activity and the economy’s resilience,” says Kruger. “The refreshed PayInc Net Salary Index reinforces the view that 2025 is shaping up to be a positive salary year, despite the uncertainties and challenges weighing on the economic outlook.”
In real terms, the PayInc Net Salary Index declined by 0.1% month-on-month to R20 758 in August 2025, marginally lower compared to R20 782 in July, according to Naidoo. This is the second consecutive month that real net salaries dipped below year-ago levels.
However, with consumer inflation averaging just 3,1% in the first eight months of 2025, the average real net salary rose by 1,5% compared to the same period in 2024.
With full year average consumer inflation forecast at 3,3% in 2025 – compared to 4,4% in 2024 – and industry data suggesting an average salary increase above 5%, 2025 will likely be the second consecutive year of a real increase in earnings.
“This is a welcome tailwind for salary earners, supporting consumption expenditure and could assist in softening the impact of global headwinds on the local economy,” says Kruger.
Despite notable improvements in salaries since 2024, the strain on earnings from the dismal years of 2021–2023 continues to weigh on households, particularly the declining purchasing power caused by high inflation.
“According to the PayInc Net Salary findings, the trend in real net salaries since 2020 suggests that while salaries have recently begun to catch up, they still lag significantly behind earlier levels. As a result, salary earners continue to feel the strain of the higher cost of living,” ends Kruger.