JOHANNESBURG - South African salaries are rising, but not fast enough to keep up with inflation, pushing real earnings to a two-year low.
The latest PayInc Net Salary Index shows take-home pay rose slightly to just over R21,500 in May. But it has failed to keep pace with inflation, leaving consumers worse off in real terms.
For the first five months of 2026, real salaries declined, highlighting the impact of rising fuel costs, higher interest rates and ongoing economic uncertainty.
Spending is already slowing, with consumers cutting back on non-essential items and confidence levels dropping sharply in the second quarter
While there could be some relief ahead, with fuel prices expected to fall from July, economists warn that consumers are likely to remain under pressure for the rest of the year.