What you need to earn to be considered middle class in South Africa
In South Africa, there is no official definition of the middle class, and estimates vary widely, from as little as R5,000 per month to as much as R29,000 per month.
Determining who falls into South Africa’s middle-class category is made even more difficult when the country’s high unemployment rates are considered.
According to Stats SA, South Africa’s unemployment rate increased to 33.5% in Q2 of 2024, the highest in two years, up from 32.9% in the prior period, surprising analysts who expected it to ease to 32.3%.
The number of unemployed individuals increased to 8.4 million, marking the highest figure since comparable records began in 2008.
With such a staggering unemployment rate, even those who earn R1 per month through a job are considered part of the 16.7 million employed people in South Africa, making it even harder to pin down a true definition of “middle class”.
Given this context, various sources offer different benchmarks.
For example, Stats SA reported that wages in South Africa averaged R27,450 per month in Q2 of 2024. This represents an increase in the R26,783 average in Q1 and falls on the higher end of the “middle class” spectrum.
When looking at median earnings, though (the middle point of the earnings spectrum), the middle sits at R5,400 per month.
Wages in South Africa averaged R16,273.70/Month from 2004 until 2024, reaching an all-time high of R27,450.00 per month in the second quarter of 2024 and a record low of R6,742.00 per month in the first quarter of 2005.
On the other hand, Discovery Bank’s 2024 SpendTrend report categorizes middle-income earners as those making between R100,000 and R350,000 annually, roughly R8,000 to R29,000 per month.
Other reports, such as those from the University of Cape Town’s Liberty Institute and financial services company Eighty20, offer slightly different numbers.
According to their estimates, a household or person would need to earn around R22,000 to be seen as middle-class in South Africa.
In its latest Credit Stress Report, Eighty20 also noted that households with an income of around R25,000 a month and a personal income of R15,000 can be defined as middle-class workers.
However, according to the Bureau for Economic Research (BER), the middle class in South Africa earns even less.
In its latest report on consumer confidence, it said that South African households earning between R5,000 and R20,000 per month could be considered middle-income households.
The large range of income considered “middle class” in South Africa means that the spending power of people in this group varies significantly.
Taking housing as an example: the general rule is that you should spend no more than 30% of your income on rent. For someone earning R27,450 per month, that works out to about R8,235, and they would currently have over 5,500 rental options in Gauteng that meet this price on Property24.
However, for someone earning just R5,000 per month, that figure drops to R1,500, and there are fewer than 25 properties available at that price.
Groceries are another major expense, Stats SA found. The lowest-income households spend up to 50% of their income on food, while middle-class households spend around 34%.
On the other side of the spectrum, higher-income households spend around 11% of their salaries on groceries.
According to the Pietermaritzburg Economic Justice and Dignity group, average grocery bills vary by location.
In Johannesburg, for instance, the average household spends R5,215.79 monthly on groceries, while in Durban it’s R5,069.40 and in Cape Town, it’s R5,062.03.
Another major expense for many households is their vehicle.
According to financing experts, individuals should spend no more than 25% of their monthly income on vehicle-related costs.
Last quarter, BusinessTech calculated that the average income earner per month should spend no more than R6,725 on vehicle expenses.
This meant that there were 12 new cars in South Africa that they could afford.
While this may still feel costly for those on the higher end of the “middle class”, for those on the lower end of the spectrum – it is downright unaffordable.
Being “middle class” in South Africa encompasses a wide range of income levels, with varying spending power depending on where you fall within that spectrum.
For those on the higher end, expenses like rent, groceries, and transportation are more manageable, while for those on the lower end, these costs often represent a much larger portion of their monthly budget.
Despite recent wage increases and stabilising inflation rates, many South Africans continue to feel the pressure of rising costs, especially as the country’s unemployment rate remains stubbornly high.
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