Good News for Salaried Workers: South Africa’s Average Pay Rises Above Inflation

According to the latest Quarterly Employment Survey (QES) from Stats SA, the average salary in the formal non-agricultural sector reached R28,231 in Q4 2024, marking a 5.3% year-on-year increase. Though slightly lower than Q3’s revised figure (R28,274), this growth outpaced 2024’s average inflation rate of 4.4%, meaning workers saw real wage gains.

Key Salary Trends

• Year-on-year (YoY): +5.3% (R28,231 vs. R26,804 in Q4 2023)
• Quarter-on-quarter (QoQ): -0.2% (R28,231 vs. R28,274 in Q3 2024)
• Gross earnings surged 6.1% QoQ to R1.03 trillion, driven by end-of-year bonuses.

Bonuses Give Earnings a Major Boost

The final quarter saw a massive 85.4% jump in bonuses (R51.8 billion), reflecting seasonal payouts. However:

• Basic wages grew only 1.1% QoQ (4% YoY, matching inflation).
• Overtime pay dropped 7.7% as workers took year-end leave.

Sector Breakdown: Winners and Losers

Stats SA noted stark differences across industries:

Highest-Paying Sectors

1. Electricity (Far above average)
2. Mining & Community Services (Substantial wages)
3. Transport & Business Services (Competitive salaries)

Below-Average Sectors

• Manufacturing
• Construction
• Trade

“These gaps highlight varying economic roles and challenges,” Stats SA said.

A Mixed Picture for Jobs

While salaries grew, employment trends were uneven:

• Total jobs rose by 12,000 in Q4 (0.1%), reaching 10.64 million.
• Year-on-year job losses hit 91,000, signaling broader struggles.

Job Gains & Losses by Sector

 Trade (+42,000 jobs)
 Business Services (+22,000)
 Community Services (-26,000)
 Construction & Manufacturing (-13,000 each)

Part-time work suffered the most, with 650,000 fewer jobs YoY—a worrying sign for flexible employment.

The Bottom Line

South Africa’s labour market showed resilience in wages but fragility in jobs. While bonuses lifted earnings, long-term stability depends on broader sectoral recovery.

“The data reveals both growth and disparity,” Stats SA concluded. “Some industries thrive, while others lag behind.”

For workers, the takeaway is clear: salaries are rising, but job security remains a challenge in 2024’s uneven economy.