How salaries in South Africa are expected to increase over the next year

South African organisations have continued to have a conservative approach to awarding increases.

This is according to PwC’s latest Human Resources report for South Africa, which looked at upcoming changes in the business sector for the next 12 months.

Based on market data analysis, PwC found that the average increases to be awarded in the next 12-month rolling period will be 6% on total guaranteed package – compared to 6.3% in October 2018.

The report shows that the cost of human capital remains the highest contributor to overall costs in most organisations while attracting and retaining key skills influences sustainability over the long term.

“From this publication, it is also evident that only 34% of the responses indicated that the participants ‘regularly measure’ some or all of the employee costs listed and associated with the loss of key skills,” PwC said.

“Although direct costs such as replacement costs in the form of agency fees are easier to track, the hidden real cost of staff turnover remains something of a ‘black box’.

“Accurate tracking of these costs may influence the retention strategies of many organisations, and it remains concerning that organisations are not more dedicated to measuring these costs on a regular basis.”


The table below shows the minimum and maximum expected total package increments for the next 12-month period.

At the lower-end, PwC found that South Africans will likely see minimum increases of between 4.5% and  5.0% across every major sector – in-line with the current inflation rate.

At the higher-end, the data shows that employees can expect increases of between 7.3% and 7.5%.

Read: These jobs pay the best salaries in South Africa right now

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How salaries in South Africa are expected to increase over the next year