How much money does the average person have in South Africa?
In South Africa, the average household net-adjusted disposable income per capita is USD 9 338 a year, considerably less than the OECD average of USD 30 490 a year.
Stats SA has published its quarterly employment survey (QES) for the fourth quarter of the year ending December 2022. According to the data, the average salary in South Africa is now R26,032 a month, up 4.5% from the previous quarter, where it was R24,813, and up 9.2% from the fourth quarter of 2021 at R23,828.
You need about R15 000 – R20 000 per month to afford the basics. This also depends on your number of dependents, accommodation situation (living alone, sharing an apartment, and utilities) and lifestyle (gym membership, smoker, alcohol drinker etc).
Upper-class income in South Africa
For anyone to be considered as belonging to the upper-class echelon of the South African economic community, they must have a net worth of about R4. 2 million. The majority of the people in this class are chief executive officers of lucrative businesses in sectors.
On average, consumer prices in South Africa are lower than in the UK, USA, Germany, and the Netherlands. The most significant difference is between South Africa and the Netherlands. South Africa's consumer prices are 43.13% lower.
The group's latest data points to Middle-Class Workers – a segment of 4.1 million adults earning typically between R8,000 and R30,000 per month – feeling the most financial strain. For middle-class workers in South Africa, the average instalment-to-income ratio has increased by nearly 9% over the past year.
Cape Town was the most expensive metro to buy a home in South Africa in 2021. The average price of residential property was almost 1.6 million South African rands in that year, which was roughly three times higher than in Mangaung.
Cost of living in South Africa is 57% cheaper than in United States.
A recent PayProp Rental survey indicated that South Africa's average monthly property rental costs R7 778 per month. The Western Cape's average rental is R9 185 per month - almost R1 500 more than the national average.
What is minimum wage in South Africa?
The Department of Employment and Labour has also published the new National Minimum Wage for South Africa. The minimum wage of R23,19 per hour will increase to R25,42 per hour (an increase of approximately 9,6%), with effect 1 March 2023. The new minimum also outlines the minimum wage for workers in certain sectors.
More than 90% of retirees are unable to maintain their pre-retirement standard of living, and two-thirds have less than R50 000 in their retirement assets. Since 2017, the average value of benefits granted has climbed marginally in real terms, averaging around R39 000 per month.
The report, compiled by Henley & Partners and New World Wealth, shows that South Africa was home to 37,800 US dollar millionaires at the end of 2022, the most millionaires in Africa and accounting for over 27% of the 138,000 millionaires on the continent.
Considering this and the rand-to-dollar exchange rate as of 12 April 2023, it would take South Africans earning R26,032 a month 59 years to reach $1 million (R18,433,448) – the title of a global millionaire.
The data reveals that you would need to make about R151 451.00 per month to be in the top 1% of earners. In terms of overall wealth, one would require a net worth of about R4. 2 million to be a member of South Africa's top 1%.
| Income per year | Total wealth | |
|---|---|---|
| Top 1% | R2 584 000 | R16 884 350 |
| Top 10% | R783 750 | R2 628 650 |
| Middle 40% | R82 650 | R128 250 |
| Bottom 50% | R12 350 | – R15 200 |
The general cost of groceries in South Africa varies dramatically across different income groups. BFAP suggests that a 'moderate-cost healthy food basket' including staple foods, proteins, fruit, and veg, costs about R3,618 per month.
| Restaurants | Edit |
|---|---|
| Loaf of Fresh White Bread (1 lb) | 14.37R |
| Rice (white), (1 lb) | 11.10R |
| Eggs (regular) (12) | 31.07R |
| Local Cheese (1 lb) | 53.85R |
The average monthly rent of residential properties increased across all provinces in South Africa in 2021, except for the Free State and Gauteng. In the final quarter of the year, the national average rent stood at approximately 7,900 South African rands.
South Africa had the highest Digital Quality of Life index score in Africa in 2021 and 2022. In 2022, the country registered 0.41 points, ranking it 66th of 117 analyzed countries. In the previous year, the score was higher, at 0.49 points.
Which job is the most paying in South Africa?
- Judge: Average Annual Salary 825,000 ZAR Per Year.
- Legal Advisor: Average Annual Salary 400,000 ZAR Per Year.
- Lawyer: Average Annual Salary 326,000 ZAR Per Year.
| Province | Living Wage per Month | Living Wage Per Hour |
|---|---|---|
| Eastern Cape | ZAR 8,642 | |
| Province | Living Wage per Month | Living Wage Per Hour |
| Free State | ZAR 8,166.00 | ZAR 41.91 |
| Province | Living Wage per Month | Living Wage Per Hour |
Foreigners are free to buy property in South Africa without restrictions, subject to meeting the visa requirements to live and work in the country. Expats with a criminal record are not permitted to buy property. As in other countries, you must provide a range of documents to buy a home in South Africa.
Anyone may buy and own property in the United States, regardless of citizenship. There are no laws or restrictions that prevent an individual of any foreign citizenship from owning or buying a home in the U.S.
| South Africa | ||
|---|---|---|
| 1-Bedroom apartment in downtown area | $341.02 R6,278.66 | +348.1% |
| 1-Bedroom apartment outside city center | $317.79 R5,850.91 | +303.7% |
| Utilities for two (700 sq ft apartment) including electric, gas, water, heating | $80.15 R1,475.65 | +73.2% |
| Average | +193.1% |
The vast majority of those intending on moving to South Africa start by applying for a temporary residence visa. Temporary residence visas give holders the right to live and work in the country for between three months and five years.
Living in South Africa has many perks- it's a stunning country, filled with unbeatable natural splendour, vibrant cultures, mouth-watering cuisine and activities to tickle any fancy as well as a warm wamkelekile (welcome) that permeates its people, businesses and towns.
This beautiful country has much to offer retirees – a mild climate, favorable exchange rates, and a large English-speaking expat population. These factors make retiring in South Africa a popular choice for expats from all over the world.
It said that 2.5 years into the current 5-year period, i.e. 2015 to 2019, the average size of a full title stand to date has measured 552 square metres – almost half the average stand size of full title homes built in the early-70s.
Average daily rate: R2,960
“The average five-star room in 2022 will cost R4,375, up 8.1% on a compound annual basis from R2,960 in 2017.
How much do you pay a maid in South Africa?
Average R 533 930 per year.
The maximum normal working time allowed (section 9 BCEA) is 45 hours weekly. This is 9 hours per day (excluding lunch break) if the employee works a five-day week, and 8 hours per day (excluding lunch break) if the employee works more than 5 days per week.
The minimum wage has been revised in South Africa with effect from 01 March 2023. The national minimum wage is increased from ZAR23. 19 to ZAR25. 42 per hour.
According to the South African Treasury, only 6 out of every 100 South Africans will be able to retire comfortably. A recent BusinessTech poll shows more than a third (35%) of middle-class South Africans aren't putting any money at all away for their retirement.
1: Multiply your final annual salary by 15
“To maintain your lifestyle after retirement, you'll need around 15 times your annual salary, so 15 x R300,000, meaning a lump sum of roughly R4. 5 million,” he said.
Age 25 – contribute 15% of your salary to retirement provision. Age 35 – contribute 24% of your salary to retirement provision. Age 45 – contribute 43% of your salary to retirement provision. Age 50 – contribute 60% of your salary to retirement provision.
It is a well-known fact that 90% of the world's millionaires have made their fortunes through their timeous investments when buying, selling and renting out properties. Investing in real estate is a reliable wealth-building strategy and you certainly do not have to do all the legwork yourself.
Situated on the banks of the Nile River, Cairo holds significant historical importance and is renowned as one of the most crucial cities globally. It also boasts the highest number of billionaires of any other African city.
A new report by New World Wealth reveals the average age of South Africa's multi-millionaires. According to NWW, the average age of a multi-millionaire in SA, namely an individual with wealth of at least US$10 million, is 55 years. This is slightly below the worldwide average of approximately 56 years.
According to the report, there are now 3.4 million people who fall into the black middle class, making up 7% of South Africa's black population.
Is South Africa middle class?
The lower and higher middle class is differentiated by the lack of government support required. The group defines the middle class in South Africa as households with an income of R22,000 per month and above.
While South Africa's lead over its African peers is notable, the millionaire growth in the country is cause for concern. Between 2012 and 2022, the number of South African millionaires declined from 47,800 to 37,800 – a 21% decline.
(Calculations are based on a 20-year mortgage at the current prime rate of 9%.): In the Eastern Cape, the average purchase price is R1 048 847 (the most affordable of all the South African provinces), so you'll need to earn at least R32 000 per month to afford a home loan of this value.
Your budget should be based on your income, and a decent rule of thumb is that your grocery budget shouldn't be more than 25% of your take-home salary. This percentage will increase the less money you make. A person who earns R10,000 per month should set aside no more than R2,500 for groceries, or R83 per day.
On average, the cost of buying a home is 20-30% cheaper than building one. Established properties are usually close to amenities such as schools, shopping areas, restaurants, major highways, and public transport.
- Find A Job. ...
- Apply For A Visa/Permit. ...
- Get Health Insurance. ...
- Rent Or Buy Property. ...
- Move Your Belongings. ...
- Register For Healthcare. ...
- Open A Bank Account. ...
- Transfer Money.
Not accounting for inflation, the average monthly electricity and water bill for lower to middle income families was a mere total of R161 in 1996. Fast forward to 2020 and this average monthly electricity and water bill has ballooned to R2 028!
What is the Cost of a Kilolitre of Water in South Africa? On average, the consumption of up to 200 kilolitres in South Africa costs R44. 97 per kilolitre per month and consumption exceeding 200 kilolitres in South Africa costs R47 per kilolitre per month.
Most expats rent accommodation initially, at least while they get to know the various areas and suburbs of their new city. Expats looking to settle down for good will be able to purchase property fairly easily, as there are no property-ownership restrictions for foreigners in South Africa.
You can access the tool here. Earning the average formal sector salary in South Africa of R24,051 (QES, 3Q21) would put you in the richest 12% in the country, according to the simulator. The monthly salary you would need to be a top 1% earner, meanwhile, is around R151,451, the data shows.
