The house and car the average government employee can afford in South Africa

The average government employee can afford a house worth between R1.8 million and cars worth up to R372,000.
The average public-service employee in South Africa earns R41,200 per month—a figure that surpasses the national average, which includes the private sector, by R14,400.
This stark wage disparity, highlighted in the 2024 compensation and employment data from the National Treasury, is not a recent phenomenon.
Since at least 2019, the average government salary has consistently exceeded the national average by over R10,000, underscoring the premium placed on public-sector remuneration.
According to the Treasury, the significant gap between public-sector and national wages is largely attributed to the government’s historical efforts to attract and retain skilled professionals in critical sectors such as healthcare, education, social welfare, and security.
Over the past 30 years, public-service remuneration structures have undergone extensive reforms, with competitive salaries and a broad array of benefits forming the cornerstone of these efforts.
These benefits include pensions, medical and housing subsidies, bonuses, and allowances, all of which contribute to the elevated average monthly earnings of government employees.
Treasury data confirms that the average government salary not only exceeds the national average but also places the typical public-service worker among the top 10% of income earners in South Africa, according to the World Inequality Database.
In contrast, according to Treasury’s comparative data, formally employed non-agricultural workers (which includes the private sector) earn an average of R26,800 per month.
Since 2019, public service earnings have consistently been at least 50% higher than the national average.
This trend has been further amplified by the introduction of occupation-specific dispensations (OSDs) in 2007, which were designed to retain skilled professionals through targeted increases in wages and benefits.
However, while these measures have succeeded in making public-sector jobs attractive, they have also led to an unsustainable wage bill that now consumes a significant portion of the national budget.

House
According to Richard Gray, CEO of Harcourts South Africa, banks clearly prefer lending to home buyers whose monthly bond cost is no more than 30% of their single or joint gross monthly income.
This 30% income threshold for home loans has been a common measure of loan affordability among South African banks.
For instance, institutions like SA Homeloans have stated that they will not approve a home loan if the repayments exceed this percentage of a borrower’s single or joint gross monthly income.
Gray emphasised that adhering to the 30% guideline ensures that home buyers maintain a balanced financial portfolio, allowing room for other expenses and savings.
Gray also noted that this threshold is important because it also leaves room for additional monthly payments to be made into a home loan account.
This can reduce the final cost of the home loan and decrease the payment period.
Considering this, BusinessTech estimated the price of a property one or two individuals – assuming you have a partner – could afford on the average salary in South Africa.
To calculate this, we used Absa’s bond calculator, assuming a 20-year home loan period at an interest rate of 11.25%.
Based on these assumptions, the table below outlines the price and monthly bond repayment amount that the average government worker can afford.
Using these figures, we then looked at various properties currently on the market at these price points.
Gross income (monthly) | Max. property value | Monthly repayment |
---|---|---|
R494,400 (R41,200) | R1,178,000 | R12,360 |
3 Bedroom Apartment in Ennerdale – R1,148,000






Car
Industry experts still recommend that prospective buyers shouldn’t spend more than a quarter (25%) of their monthly income on vehicle-related costs, including:
- Vehicle instalments
- Insurance premiums
- Fuel costs
Below, BusinessTech looked at what you can afford to buy on the average government salary in South Africa, using the above assumption that people will not spend more than 20% of their gross monthly income on vehicle financing, as per expert recommendations.
The calculations were made using Wesbank’s repayments calculator and include the assumption of a 0% deposit for car financing. They also exclude any additional fees incurred during the loan’s inception into the calculation.
The cars are financed over five years (60 months) at an annual interest rate of 11.25%.
Using these figures, we then looked at various properties currently on the market at these price points.
Gross income (monthly) | Max. car value | Monthly Repayment |
---|---|---|
R494,400 (R41,200) | R372,000 | R8,240 |
Mazda Mazda2 1.5 Dynamic auto – R371,300

Haval Jolion 1.5T City Plus – R370,950

Volkswagen Polo hatch 1.0TSI – R366,500

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