Entry into the 2025 workforce in South Africa has been cautiously optimistic, as salaries continue to increase despite economic headwinds. According to BankservAfrica’s Take‑home Pay Index, January dismissals and dismissals pay hit the high of R18,098 from R17,246 in December 2024-a stark increase of just less than 16.3% nominal increase in pay compared to the year before; if adjusted for inflation, this is equivalent to a real pay increase of 12.8%.
Pay Trends Across the Country
The median annual base salary in Sub-Saharan African regions stood at approximately R960,000, with over two-thirds of professionals enjoying an average 10% upgrade. In South Africa, however, typical hikes from 5.5% to 6% are expected for 2025, based on global trends cited by Aon, which report South Africa budgeting about 6% for pay hikes.
Minimum Wage and Essential Services
In March, the increase took effect in the minimum wages-the base having reached an amount of R28.79 per hour, showing a 4.4% increase over the next preceding level. The said target sectors of cleaning and security have also gone the dynamic way: Cleaners received a 4.4% increase in March and now earns between R28.89 and R31.69 per hour, depending on location, whereas private security officers will receive staged wage increases to reach R8,184 per month in 2026.
Industry-Wise: Growth & Disparities
Tech and IT jobs kept marching ahead above the average. Analytico survey states that IT full-timers draw a monthly average salary of R88,635, which is strikingly higher than the national average of R18,098. Also, roughly 47% of IT workers received pay changes in 2025, and about 55% received bonuses.
Sectors such as healthcare, engineering, finance, retail, construction, and education, however, report more moderate average monthly incomes between R27,000 to R42,000, according to Expatica. Engineering is sitting at a R41,964 level, healthcare around R31,407, while IT hovers around R42,086.
The Tax Bracket Trap
Rising tax burdens have become a growing concern even with salary hikes. With personal income tax brackets remaining unadjusted for inflation in the 2025 budget, employees are faced with bracket creep. As a normal increase is said to range from 5.5 to 5.7%, a higher increase is needed just to keep after tax money at the same level.
Economic Outlook & Outlook
It is forecasted that the real GDP of South Africa will grow at the rate of about 1.7 percent in 2025 with salary increases also predicted to continue marking the possible second consecutive year of real increases in income . However, the outlook may change depending on the course of policy decisions in terms of budget revisions and inflation trends.
Also Read:South Africa Average Salary Increase 2025: Industry-Wise Breakdown Released