The latest report by BankServ Africa shows that take-home pay declined for the third consecutive month in the month of May.
BankServ Africa attributes the decrease to a challenging economic landscape characterized by slow economic growth domestically and a deteriorating global economic outlook amid tensions in the Middle East.
The latest data shows that the nominal average take-home pay dropped by 1,3 to reach R17,296 in May compared to April.
Independent Economist, Elize Kruger says despite the current decline, take-home pay had been moving in a positive direction from mid-2024 to early 2025.
"2025 has turned out to be quite a volatile year with multiple global shocks and a host of local challenges. This has resulted in downward revisions to growth and this has subsequently resulted in an environment of low confidence and uncertainty, which is not conducive to economic activity. I think that is what we are seeing in the salary space with companies conservative in terms of salary increases in the light of uncertainty and reduced economic growth prospects," says Kruger.
