{"id":123511,"date":"2016-05-12T22:38:21","date_gmt":"2016-05-12T20:38:21","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=123511"},"modified":"2016-05-12T22:38:21","modified_gmt":"2016-05-12T20:38:21","slug":"what-you-need-to-know-about-south-africas-middle-class","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/123511\/what-you-need-to-know-about-south-africas-middle-class\/","title":{"rendered":"What you need to know about South Africa’s middle class"},"content":{"rendered":"

A new report by Standard Bank provides some insights into the consumer trends in South Africa – highlighting the stark income inequalities among the country’s people.<\/p>\n

Using data from the Bureau of Market Research (BMR), Standard Bank highlights the general class system in the country, created largely by inequalities in wealth.<\/p>\n

BMR puts the annual income classification of the South African consumer at:<\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n\n
Annual income<\/th>\nMonthly income<\/th>\nClassification<\/th>\n<\/tr>\n
R0 – R11 600<\/td>\nR0 – R967<\/td>\nLowest<\/td>\n<\/tr>\n
R11 601 – R49 000<\/td>\nR968 – R4 083<\/td>\nSecond lowest<\/td>\n<\/tr>\n
R49 001 – R109 000<\/td>\nR4 084 – R9 083<\/td>\nLow emerging middle<\/td>\n<\/tr>\n
R109 001 – R234 000<\/td>\nR9 084 – R19 500<\/td>\nEmerging middle<\/td>\n<\/tr>\n
R234 001 – R378 000<\/td>\nR19 501 – R31 500<\/td>\nLower middle<\/td>\n<\/tr>\n
R378 001 – R783 000<\/td>\nR31 501 – R65 250<\/td>\nUpper middle<\/td>\n<\/tr>\n
R783 001 – R1 693 000<\/td>\nR65 251 – R141 083<\/td>\nUpper income\/Emerging affluent<\/td>\n<\/tr>\n
R1 693 001+<\/td>\nR141 084+<\/td>\nAffluent<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

Around 53% of South Africa’s population are considered poor according to the income classifications.<\/p>\n

This, BMR said, comprises 36% of the population that earn either no income or not more than R11,600 p.a. 17% fall into the second poorest category. These two groups only contribute 11.2% of income.<\/p>\n

The middle class, is the next group, according to BMR, and comprises 18% of the working age population. However, the middle class generates the most income. They contribute a combined total income of 64.6%.<\/p>\n

Read: How much money you need to be middle class in South Africa<\/a><\/strong><\/p>\n

While the two most affluent income groups only comprise 0.9% of the population, their income contribution is 22.6%.<\/p>\n

“This highlights South Africa\u2019s stark inequality but also the importance of the growing middle class, Standard Bank said.<\/p>\n

Additional findings<\/h3>\n