How many South African households earn R1 million
New data by Standard Bank finds that around 200,000 households in South Africa earn an income, after tax of more than R1 million.
The bank found that around 136,000 households earned an average salary of R1 785 895, while 66,000 homes earned an average of as much as R5 399 102 annually.
Overall, however, 94.5% of households in the country have negative net incomes, with the poorest showing the largest deficit in net income.
Only 5.5% of South African households – those within the three highest income brackets – potentially have the ability to save each month, the bank said.
Standard Bank pointed out that low income households already have very low disposable income before any expenditure is deducted.
Standard Bank used a simple equation – expenditure per household versus income net of taxes, to assess affordability and the savings patterns of South African households.
Standard Bank, using data from the Bureau of Market Research (BMR), puts the annual income classification of the South African consumer at the following:
| Annual income | Monthly income | Classification |
|---|---|---|
| R0 – R19,000 | R0 – R1,583 | Lowest |
| R19,001 – R86,000 | R1,584 – R7,167 | Second lowest |
| R86,001 – R197,000 | R7,168 – R16,417 | Low emerging middle |
| R197,001 – R400,000 | R16,418 – R33,333 | Emerging middle |
| R400,001 – R688,000 | R33,334 – R57,333 | Lower middle |
| R688,001 – R1,481,000 | R57,334 – R123,417 | Upper middle |
| R1,481,001 -R2,360,000 | R123,418 – R196,667 | Upper income/Emerging affluent |
| R2,360,001+ | R196,668+ | Affluent |
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This graph shows how we spend our money each month in South Africa
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