What you need to earn to live a ‘decent’ life in South Africa
South Africans need to earn at least R20,000 per month net to achieve a decent, yet humble, standard of living.
This is according to the latest figures by the Living Wage South Africa Network (LWNSA), a non-profit organisation that looks to drive the concept locally.
“We encourage businesses and government entities to adopt this living wage voluntarily as a matter of human decency and social sustainability,” said Professor Ines Meyer, chairperson of the LWSAN.
The living wage refers to take-home earnings before benefits are added or deductions applied, but it does not include tax.
The study of 2,000 participants revealed a cost-of-living range from which the 2026 living wage was developed.
While the average respondent had net pay below R14,000, South Africans with net pay above R25,000 could, to some extent, live a decent life.
The average respondent with net pay below R14,000 per month could not live a decent life, whereas everyone with net pay above R25,000 per month could to at least some extent.
“We settled on the midpoint of R20,000 because it adequately satisfies the four main criteria that qualify the living wage at a national level,” Meyer said.
At this level, the following becomes possible for earners:
- To realise the lives they value;
- Save something for the future;
- Be prepared for occasional emergencies, like unforeseen medical costs; and
- Enjoy a decent standard of living and human dignity
That said, LWSAN noted that living costs can vary significantly from region to region, and employers may want to raise their minimum wage in a specific location.
“They can follow the same methodology employed by LWSAN, and we invite them to contact us for assistance,” says Meyer.
Far higher than the minimum wage
LWSAN noted that the living wage is higher than the legislated minimum wage, which was a result of negotiations among the government, business, industry experts, and labour representatives.
“This process risks overlooking the struggles of the people who depend on it; we talk to them directly and give them a voice through our experience-focused data collection methods,” said Meyer.
Although the minimum wage is compulsory, the living wage is purely voluntary.
Meyer noted that organisations that adopt the living wage may view the investment as a means to prevent people from being trapped in poverty rather than as an administrative obligation.
The figure appears as a major expense for many organisations, especially those dependent on human labour. However, Meyer said the living wage should be seen as an approach rather than a fixed figure.
The company said that South Africa suffers from low economic growth and social instability stemming from the stifling poverty endured by many of its citizens.
“When people earn at least the living wage, they can spend more on previously unmet needs, which creates greater demand on production and for labour, which creates more jobs, and so on,” said Meyer.
“If people earn enough not to stress about money, they also become more productive employees. It is an investment rather than a cost to the business.”
LWSAN said that private investors are now also using their stock ownership to pressure companies to act responsibly in their obligations to society.
Meyer noted that a new generation of shareholders has changed how they invest, challenging the status quo and making them potential ambassadors for the living wage.
One recent example involving corporate remuneration came at Absa following the R148 million pay package for CEO Kenny Fihla, with 43% of shareholders rejecting the implementation report.
LWSAN added that the living wage is a constitutional matter, as a lack of access to economic dignity limits Section 10 of the Constitution, with the living wage a potential mechanism to help honour rights.
“We need to stop seeing the Constitution as a mere legal reference but rather a call to action that motivates us to uplift those for whom it was written; the living wage provides that opportunity,” said Meyer.
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