{"id":862256,"date":"2026-06-21T17:00:00","date_gmt":"2026-06-21T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=862256"},"modified":"2026-06-19T15:41:30","modified_gmt":"2026-06-19T13:41:30","slug":"the-house-and-car-you-can-afford-on-a-teachers-salary-in-south-africa-in-2026","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/862256\/the-house-and-car-you-can-afford-on-a-teachers-salary-in-south-africa-in-2026\/","title":{"rendered":"The house and car you can afford on a teacher\u2019s salary in South Africa in 2026"},"content":{"rendered":"\n

Public school teachers can afford a house worth between R32,000 and R3.37 million and cars worth between R310,000 and R1.13 million, depending on their position, qualifications, and experience.<\/p>\n\n\n\n

The Department of Basic Education publishes an annual salary adjustment report for teachers in South Africa.<\/p>\n\n\n\n

This report details teacher salary notches, which range significantly based on qualification, experience, and seniority.<\/p>\n\n\n\n

The lowest salary scale for educators is R169,707 per year, while the highest salary is R1.327 million. Taking inclusive packages into consideration, this maximum can reach as high as R1.76 million<\/p>\n\n\n\n

The latest data shows that South Africa\u2019s public education system employs around 410,000 teachers in 25,000 schools.<\/p>\n\n\n\n

However, Basic Education Minister Siviwe Gwarube revealed in a recent parliamentary Q&A that South Africa has lost over 32,000 teachers in the past five years.<\/p>\n\n\n\n

This averages to more than 6,000 educators leaving the teaching industry each year. Of these departures, 30,992 were resignations attributed to overwhelming workload pressures, career changes, and emigration.<\/p>\n\n\n\n

A teacher\u2019s basic salary is determined by their notch on the salary scales published in the Government Gazette.<\/p>\n\n\n\n

The notch on which a teacher enters public service depends on their qualifications and years of experience.<\/p>\n\n\n\n

For example, a teacher with a matric and four years of university education would enter Notch 164. In their first year of employment, this translates to a basic annual salary of R366,051.<\/p>\n\n\n\n

Teachers who meet minimum performance requirements move up to a higher salary notch each year, and they remain in government service.<\/p>\n\n\n\n

This means that teachers\u2019 salaries increase with experience. As such, older teachers will earn more than younger teachers with the same qualifications.<\/p>\n\n\n\n

When a teacher gets a promotion, they will earn more because they will be moved to a higher salary notch.<\/p>\n\n\n\n

This means that department heads, deputy principals, and principals earn much more than ordinary teachers with the same qualifications.<\/p>\n\n\n\n

Due to the many variables determining a teacher\u2019s salary, BusinessTech looked at examples of the houses and cars that can be afforded by entry teachers who have a Relative Equivalent Qualification Value (REQV) of 14 and the top-paid principals. <\/p>\n\n\n\n

This is because, according to the central system used for administering the public service payroll (Persal), 66% of teachers had a Relative Equivalent Qualification Value (REQV) 14 qualification.<\/p>\n\n\n\n

This is the minimum required level of education to register as a fully professionally qualified teacher with the South African Council of Educators (SACE).<\/p>\n\n\n\n

Comparing this to the top-paid principals also gives you an idea of how much the salary scales and the standards of living vary between the salary bands and notches.<\/p>\n\n\n\n

The full gazette with all salary notches can be read here<\/a><\/strong>.<\/p>\n\n\n\n

Houses<\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

This 30% income threshold for home loans has been a common measure of loan affordability among South African banks.<\/p>\n\n\n\n

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\u2019s single or joint gross monthly income.<\/p>\n\n\n\n

Gray emphasised that adhering to the 30% guideline ensures that home buyers maintain a balanced financial portfolio, allowing room for other expenses and savings.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

This can reduce the final cost of the home loan and decrease the payment period\u200b\u200b.<\/p>\n\n\n\n

Considering this, BusinessTech estimated the price of a property that one or two individuals, assuming you have a partner, could afford on the average salary in South Africa.<\/p>\n\n\n\n

To calculate this, we used Absa\u2019s bond calculator<\/a>, assuming a 20-year home loan period at an interest rate of 11.75%.<\/p>\n\n\n\n

Based on these assumptions, the table below outlines the price and monthly bond repayment amount that teachers could afford at the minimum REQV 14 salary and the maximum Principal P5 salary in South Africa.<\/p>\n\n\n\n

Using these figures, we then looked at various properties currently on the market at these price points.<\/p>\n\n\n\n

Salary band<\/th>Gross income
(monthly)<\/th>		Max. property
value<\/th>		Monthly
repayment<\/th><\/tr><\/thead>
Teacher REQV 14 \u2013 Notch 164<\/td>R366,051
(R30,504)<\/td>		R932,000<\/td>R9,150<\/td><\/tr>
Principal P5 \u2013 Notch 432<\/td>R1,326,822
(R110,567)<\/td>		R3,370,000<\/td>R33,170<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n

1 Bedroom Apartment in Westlake Eco Estate \u2013 R899,000<\/a><\/strong><\/p>\n\n\n\n

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3 Bedroom House in Willow Acres Estate<\/strong> \u2013 R3.3 million<\/a><\/strong><\/p>\n\n\n\n

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Cars<\/h2>\n\n\n\n

Industry experts still recommend that prospective buyers shouldn\u2019t spend more than a quarter (25%) of their monthly income on vehicle-related costs, including:<\/p>\n\n\n\n