As one of the largest economies in Africa, you might expect that South Africa’s average salary is high, and it can be, but it largely depends on your location, industry, and experience.
So, whether you’re an expat, an employer, or a native looking for the best remuneration, we’ve put together this guide to talk you through everything you need to consider. Let’s start by taking a look at the concept of average salary and wage.
The average wage in South Africa is the middle value you can expect to earn in any role, neither the lowest nor the highest paid. Sometimes the average salary is given as a range within which you can be paid for your work.
There are two figures you receive when you get your payroll payment: your gross, and then your net pay.
The headline figure on your payroll payment, otherwise known as the “gross” income, will not reflect the amount you take home at the end. The gross is the total amount you earn before deductions are made. Then money is taken out for aspects such as pensions, taxes and student loans.
The amount of money then paid into your account is your “net” income, which can look very different to the gross depending on your circumstances.
This is important to remember when considering average salaries, as the quoted figures will all be based on gross income, but employment benefit deductions such as pensions can be worth more in the long term.
There are several factors that can affect your salary in South Africa. One major factor is your industry; your field of work significantly impacts how much you can potentially earn.
Other factors at play include your education level, with university graduates typically earning more than those without degree-level education. Your experience and seniority within your profession will also play a part. For example, you would expect a consultant to earn more than a medical resident.
It is also worth bearing in mind your geographic location, as different cities have different concentrations of professions and pay tends to be adjusted to reflect the cost of living.
Some of the highest paying industries in South Africa are as follows:
The business of money is lucrative; one well-paid role in South Africa is that of a Chief Financial Officer, with salaries lying in the range of R33,900 and R108,000. Even bank managers can command salaries between R36,900 and R108,00.
As we move towards an increasingly technological way of life, jobs in sectors such as AI and cybersecurity are on the up. Those working in cyber security, for instance, can expect to earn in the range of R66,667 per month.
The importance of healthcare is reflected in its earning power in South Africa: doctors and surgeons can earn between R72,500 and R213,000. As a general rule, the more specialised the field and the more senior the doctor, the higher the rate of pay.
The average salary for an engineer in this essential sector is R50,000 per month. Dealing in obtaining minerals, fuels and metals underground, this work is vital for South Africa’s economy, and pays well as a result.
South Africa does have a minimum wage; it was introduced in 2019 and resulted in a universal base pay rate being introduced across South Africa in 2022. Its introduction is considered to be a significant step towards income equality in the country.
While the minimum wage may appear low compared to some other G20 nations, it takes into account cost of living, and is equivalent in its terms to most other countries. It allows workers in South Africa in vital industries such as agriculture to have a level of income security.
So you may still be asking: what is the average wage in South Africa?
The average salary, for the entire population, has gone up to R28,220 in South Africa, representing a staggering 2.6% increase between May and August 2024. But this headline figure takes into account the entire nation rather than people in particular professions.
The average salary in South Africa is the second highest in Africa, coming just after Morocco. Considering the average across the continent is $796 USD per month, this makes the average of $1712 USD per month significantly more impressive.
Another reason for variation is location; some cities have higher costs of living, and wages are adjusted to take this into account. For example, in the largest city Johannesburg, the average salary lies between R33,000 and R37,000, whereas there is a much lower range in Bloemfontein, between R24,000 and R29,000.
Before beginning your job hunt, it is important to do your research so you can enter into contract negotiations from an informed place.
Companies such as Glassdoor provide space for employees to honestly state their income, making it even easier to compare what you are being offered for a similar role. It is also worth checking what the competition is paying their staff to see that you are being offered enough.
Above all else, for your career progression, you need to ensure you are earning what is right for your industry and level of expertise.
South Africa offers a vibrant and varied jobs market, and as one of the most thriving economies in Africa, could offer you the perfect place to relocate or simply re-evaluate your career.
If you are looking to keep on top of your accounts through a major move to or in South Africa, QuickBooks accounting software can offer you the support you need to manage your finances. Try QuickBooks today with a 30-day free trial to discover more.
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