Middle-income South Africans lose over R10,000 a month
New reports show that middle-class South Africans are almost R10,000 poorer each month.
According to a new report by Business Tech, middle-income South Africans are over R10,000 poorer than in 2016.
This is due to inflation and stagnant salaries.
READ: Lucky couple wins wedding in Antarctica
Business Tech reports that there is no actual definition for 'middle class', but BankservAfrica’s latest Take-Home Pay Index (BTPI) shows the average take-home pay is around R15,673 per month as of September 2023.
BankservAfrica’s BTPI said the average South African salary rose 4.1% yearly in September, but this was below the inflation rate.
"In real (inflation-adjusted) terms, this translated into a 0.8% drop in real take-home pay to R14,239 over the period."
DebtBusters revealed in its Debt Index report that nominal incomes were 1% higher in 2023 than in 2016, but inflation growth has been 41% over the same seven-year period.
READ: Weirdest myths our parents told us as kids
That means that consumers’ purchasing power diminished by 40% over this period.
"This means middle-income South Africans taking home R15,673 per month should be earning roughly R26,122 today to have the same purchasing power they had in 2016 – equating to a loss of R10,449 per month."
Source: Business Tech
Tune in to the 'Breakfast with Martin Bester', weekdays from 06:00 - 09:00. Stream the show live here or download our mobile app here.