The average salary in South Africa in 2021 is higher than the salary rates of most countries on the continent. As a result, many skilled people across Africa prefer working in Mzansi instead of in their motherlands. Additionally, South Africa has many lucrative business opportunities for the self-employed or entrepreneurs. What is the range of salaries in South Africa?
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Monthly salaries in South Africa range between R7,880 (minimum) to R139,000 (maximum). However, the average monthly salary in South Africa fluctuates yearly because of various factors, including the government's wage policies, cost of training, trade unions' wage bargaining power, cost of living, the demand/supply of certain skills, and location.
What is the average salary in South Africa?
SA's 2021 Quarterly Employment Survey (QES) reveals the average income level for workers in different sectors. According to these average wage indices reports, the employees' basic salary/wages shot up from R646.7 billion in March to R653.9 billion in June 2021.
According to the BankservAfrica Take-Home Pay Index (BTPI) for February 2021, the median wage of a South African resident is around R13,044 per month in 2021. It means half of SA's population earns less than R13,044.
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Major contributors to the R7.3 billion (1.1%) average wage increment are manufacturing, business services, transport, electricity, and construction sectors. However, those working in mining and community service companies experienced a salary decline.
The average salary in the formal vs informal sectors
The overtime and bonus payments declined from R68.5 billion to R61.2 billion, an R7.4 billion (-10.8%) decline within the same duration. However, the good news is that the average after-tax payment in the formal sector is R12,129.
The record is 9.7% higher in 2021 compared with 2020's wages record for February to May. The formal sector was marginally up by 1.7% this year, with a record of R23,127 (February) to R23,526 (May).
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Unfortunately, July and August were not great months for both formal and casual employment. There was a substantial fall in payments for casual workers. As a result, BTPI's informal employment record dropped from 115 000 (August 2020) to 140,000 (August 2021).
The BTPI also noted that part-time employment decreased by 59,000 (1,050,000 in March 2021 to 991,000 in June 2021). Also, full-time employment declined by 17,000 jobs between June 2020 and June 2021.
According to QES, this year's private pension payments were twice the inflation rate within ten months. Hence, this indicates that most pensioners, especially those with low savings, withdrew their money.
Although pensioners have increased for the second consecutive month, the figure is lower than the previous record. Meanwhile, the average salary of a teacher in South Africa is R211,000 gross per year.
The average salary in Cape Town
How much money does a person working in Cape Town make? Workers here make approximately from R9,170 to R162,000 maximum average salary per month. Although more than half of its population earn less than the region's median salary of R37,000, one can still get a job in Cape Town that pays more than R45,000 per month.
Some of the companies that pay the best salary in South Africa's Cape Town region are Woolworths, Sanlam, and Capitec Bank. The average salary in Cape Town is R235,000 per year. Most people believe that this figure is a massive contributor to the average South African salary.
What is a good salary in Johannesburg?
Most people in Johannesburg earn more than Cape Town's workers. The average salary here is R272,000 per year. However, accountants, financial managers, software engineers, and project managers get more than R500,000 annually.
Can you predict your future wages in South Africa?
What is a good salary in South Africa? Your experience level and academic qualifications are some of the factors that influence wage rates in South Africa. For instance:
- College certificate/diploma workers earn 17% more than peers who only have matric certificates.
- Those with bachelor's degrees earn 24% more than college certificate/diploma graduates.
- MBA holders earn 29% more than workers with bachelor's degrees.
- PhD holders earn 23% more than MBA graduates.
- Employees with two to five years of experience earn around 32% more than freshers and juniors across all disciplines and industries.
- Workers possessing more than five years of experience make almost 36% more than those with five years or less work experience.
- Most people at the 10-years-mark earn double their starting salary. It is almost 21% more than the previous wages.
- You can earn an extra 14% salary increase when doing the same job for 15 years.
- You are likely to get a 10% average increase in compensation while changing jobs compared with the customary wage increment.
- Males in South Africa earn 8% more than their female colleagues across all sectors.
The average salary in South Africa is appealing to foreigners worldwide because its citizens, government, and leaders have done a commendable job in building their country's economy.
DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
Additionally, various factors boost SA's rapid economic growth, including the rising middle-class community and political stability.