Middle-income South Africans lose over R10,000 a month

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.

Angry male about money
Angry male about money / canva

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.

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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. 

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That means that consumers’ purchasing power diminished by 40% over this period. 

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

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