The income threshold that makes you ‘rich’ in South Africa

Updated April 13, 2026, 9:38 a.m. | By Carol Ofori

The gap between what South Africans earn and what they think counts as rich is wider than you might expect. Here's what the numbers tell us...

In South Africa, there is no single figure that defines what it means to be rich. Estimates range from as little as R30,000 a month to over R400,000 a month, depending on who you ask and how you measure it.

Sean Peche, founder and portfolio manager at Ranmore Fund Management, says that being considered rich is largely a matter of comparison.

Speaking at the BizNews Conference, he explained that you enter the wealthy category if you are in the top 10% of earners, meaning you earn approximately R1 million a year or hold more than R10 million in assets. For the top 1%, the threshold rises to R2 million or more a year and at least R25 million in assets.

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What does the average South African actually earn?

Stats SA places the average monthly salary at R29,690 or roughly R360,000 a year. While this may not seem substantial, the World Income Inequality Database shows it places a person in the top 8% of the entire population when the unemployed are included in the calculation.

What do South Africans believe counts as rich?

According to BusinessTech, a poll of over 1,200 South Africans found that 27% believe one must earn R5 million or more a year or R400,000 a month, to be considered rich. A further 18% set the threshold at R1 million a year, while 7% said R750,000 a year was sufficient.

Is earning well enough to stay rich?

Peche stressed that accumulating wealth is only part of the challenge. The fastest routes to financial ruin, he said, are spending more than you earn, relying on high-cost debt and ignoring risk and diversification. Saving consistently builds a financial cushion, while diversification helps protect it.

He pointed to legendary investors such as John Templeton and Peter Lynch, both of whom held large, diversified portfolios rather than concentrated positions.

In his view, real wealth is not only measured by income and assets but by whether you can keep it, use it wisely and put it to good use.

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