Before we get into potentially positive gains for South African take-home pay in 2025, let’s take a look back at data from last year. These were built on the positive trend of a democratically elected Government of National Unity (GNU) and interest rate cuts. As a result, South Africa’s average salary increased by  year-on-year in 2024.

Quoting the BankservAfrica Take-home Pay Index (BTPI), the average salary in December 2024 was . This index is feed by an estimated 4-million salary earners. And the year ended on a high note, feeding positivity for South African take-home pay in 2025. The 12% increase represents a marked leap from  just one-year prior in December 2023.

Economists say this above-inflation salary boost was driven by positive events in 2024, like suspension of load shedding and positive sentiment of GNU. Even though the increases came from a low base – as both 2023 and 2022 were dismal years for salaries. Nevertheless, the BTPI was the strongest year for take-home pay since 2020.

Consumer inflation eased in 2024 to just  – also the lowest rate since 2020. Therefore, outlooks for potential GDP growth of  in 2025, while somewhat conservative, is much higher than 2024. Yet another 25-basis-point cut to interest rates this past week (Thursday 30 January 2025) has brought yet more relief to household budgets.

Good news for South African take-home pay in 2025 is that with inflation continuing to moderate, salary earners will effectively be even better off in real terms. Assuming the 1.7% real increase and average consumer inflation of 4.2% are realised, average salary increases could be around  in 2025. For an average salary of  by the time December 2025 rolls around. This will, as always, depend on employer financial health and talent retention. Let’s just hope the resumption of Eskom load shedding does not undo the nation’s hard-fought wins of 2024.