How much money cashiers earn at South Africa’s largest retailers

Cashiers working at South Africa’s biggest retailers, on average, earn more than legal requirements, but some are better paid than others.

The wholesale and retail sector stands as South Africa’s second-largest employer after the government, accounting for 17% of the country’s workforce.

This sector is vital not only for its economic contributions but also for its role in providing livelihoods to millions of South Africans.

Amid ongoing discussions about fair pay and living wages, cashiers, as one of the most visible roles in retail, have come under scrutiny for their earnings relative to industry benchmarks and corporate policies.

In early 2024, the Department of Employment and Labour gazetted the new sectoral determinations for the wholesale and retail industry, outlining the minimum baseline wages for the year.

This followed the annual adjustment to the National Minimum Wage, which rose from R25.42 per hour to R27.58 per hour.

Cashiers, however, are entitled to a slightly higher rate within the industry.

Depending on geographic location, they earn between R27.58 and R39.49 per hour.

This translates to monthly earnings ranging from R5,377.69 to R5,948.99, or between R64,532 and R71,387 per year.

However, large retailers often set internal minimum wages that exceed these legal requirements.

A recent analysis by Just Share, based on disclosures from ten JSE-listed wholesale and retail companies, highlights how some of South Africa’s major retailers—Woolworths, Shoprite, Pick n Pay, and Spar—fare in this regard.

The data reveals that the average internal minimum wage across these retailers is R36.83 per hour, equivalent to R5,893.39 per month, comfortably exceeding the national and sectoral minimums.

Among these retailers, Woolworths leads with the highest internal minimum wage, offering employees an annual salary of R93,600.

This commitment is part of what Woolworths describes as a “just wage” initiative.

According to the company, this effort ensures store employees earn wages 18% higher than the broader retail sector’s baseline and 54% above the national minimum wage.

The company emphasised that this initiative has positively impacted the lives of over 24,000 employees and their families, significantly improving their quality of life.

Shoprite follows with an internal minimum wage of R65,263 per annum, slightly ahead of Pick n Pay at R64,537 and Spar at R59,483.

Shoprite noted its focus on paying employees fairly, with entry-level wages averaging 11% above the national minimum.

The company stated that while balancing the goal of paying a “living wage,” they are also committed to creating secure jobs with opportunities for long-term growth.

This balance, they argue, is crucial in a country grappling with high unemployment, sluggish economic growth, and service delivery challenges.

Despite these initiatives, wage structures in the retail sector remain a contentious topic, particularly when viewed against executive remuneration.

The stark disparity between the lowest-paid employees and company CEOs often sparks criticism.

According to Just Share’s findings, the average unweighted ratio between total CEO remuneration and the lowest earner’s pay is an astonishing 597:1.

This means that, on average, CEOs in the retail and wholesale sector earn nearly 600 times what their lowest-paid employees make.

This gap underscores the ongoing debates about income inequality in South Africa, where the push for living wages is juxtaposed with the realities of corporate financial structures and economic pressures.

While the strides made by major retailers in paying above-minimum wages are commendable, they also highlight the broader challenges of achieving equitable pay across all levels of employment.

As discussions about fair compensation evolve, the wholesale and retail sector will remain a focal point in addressing the pressing issues of income disparity and workers’ rights.

Read: SPAR taking on Shoprite and Pick n Pay in South Africa – with a plan for Woolworths, too