Good news for anyone earning a salary in South Africa

The average salary in South Africa increased by 5.3% year-on-year to R28,231 in Q4, although it declined slightly from the previous quarter.

According to the latest Quarterly Employment Survey (QES) from Stats SA, the average salary has dropped by 0.2% quarter-on-quarter from the revised estimate of R28,274 in Q3 2024.

However, the 5.3% y-o-y increase is higher than the average inflation for 2024 (4.4%), meaning salaries have increased in real terms year-on-year.

The Q4 data covers the final quarter of 2024, ending December. The QES represents data for South Africa’s formal non-agricultural job market.

Over the period, gross earnings paid to employees increased by R59.1 billion or 6.1% from R969.4 billion in September 2024 to R1.03 trillion in December 2024.

This was due to increases in trade, manufacturing, community services, business services, construction, transport and electricity, Stats SA said.

Meanwhile, mining reported a decrease over the period.

Year-on-year gross earnings increased by R35.5 billion or 3.6% between December 2023 and December 2024.

The boost in earnings over the period was largely driven by bonuses, reflecting the end-of-year period where these rewards are paid out.

Basic salaries and wages paid to employees increased by only 1.1% or R9.5 billion over the period, though in line with inflation year-on-year, up 4%.

Bonuses, meanwhile, were up by R51.8 billion or 85.4% from the prior quarter—up 3.2% year on year from December 2023.

Also reflecting the seasonality of the end-of-year period, overtime paid was down 7.7% from the previous quarter as most workers would have taken leave.

Stats SA said a closer analysis of sector-specific earnings highlights notable industry disparities.

The electricity sector stands out with the highest average monthly earnings, significantly surpassing the overall average.

Substantial wages are reported in the mining and community services industries, followed by competitive salaries in the transport and business services sectors.

However, on the other side, the manufacturing, construction, and trade industries fall below the total average, reflecting lower wage levels.

“These differences highlight the varying economic roles and challenges faced by each industry,” Stats SA said.

“While overall earnings are rising, the latest figures highlight a labour market experiencing both growth and disparities, with some sectors thriving while others struggle to keep pace.”

A tough picture for job numbers in South Africa

Stats SA said that 2024 was a challenged year of job losses for the country, but the final quarter ended with a showing of some recovery.

Overall employment rose by a modest 12,000 jobs, reaching 10.64 million by December 2024.

This reflected a small 0.1% increase over the quarter, despite a notable year-on-year decline of 91,000 jobs since December 2023.

The trade industry led the increase, adding 42,000 jobs, with business services following with 22,000 new jobs.

Not all sectors shared in the gains, however.

The community services industry experienced the largest decline, shedding 26,000 jobs, while construction and manufacturing each saw losses of 13,000 positions.

Full-time employment in the country saw an increase of 10,000 jobs in the final quarter of 2024, rising from 9.477 million to 9.487 million in the fourth quarter.

Part-time employment also experienced a slight uptick over the quarter, increasing by 2,000 jobs from 1.151 million in September 2024 to 1.153 million in December 2024.

However, the year-on-year picture for part-time work was bleak, with South Africa experiencing a sharp decline year over year, with 650,000 fewer jobs compared to the same period in 2023.

“While the latest figures indicate short-term gains in both full-time and part-time employment, the overall labour market continues to face challenges, particularly when compared to the previous year’s performance,” Stats SA said.