South Africa’s average salary reaches a new high in 2025
South Africa’s average salary has reached a new high, reflecting key shifts in earnings and employment across major industries.
Stats SA’s latest Quarterly Employment Survey (QES) for the third quarter of 2025 shows that the average salary for formal, non-agricultural workers has continued its upward trend. The national average now stands at R29,490, marking a 0.3% increase from the previous quarter and a 4.3% rise compared to the same period in 2024. This represents the highest average salary recorded to date.
According to BusinessTech, much of this momentum comes from strong performance in specific industries, even as others experienced declines during the quarter.
Which industries contributed to the rise in earnings?
Manufacturing led the way with the fastest quarterly growth in earnings. This was followed by transport, construction and business services. However, not all sectors showed positive movement. Trade, community services and electricity earnings recorded declines for the quarter.
Looking at the annual picture, the community services industry posted the largest year-on-year rise at 6.1%. At the other end of the scale, the business services sector saw the lowest annual increase of just 2.1%. The mining industry was the only sector to decline year-on-year, dropping by 0.8%.
Community services is a significant category, as it includes government and the broader public service sector.
How have gross earnings changed?
Gross earnings showed notable movement over the period. Between June and September 2025, total gross earnings rose by R10.7 billion, increasing from R990 billion to just over R1 trillion. This 1.1% quarterly rise was supported by increases in business services, community services, mining, manufacturing, electricity and construction. Transport and trade were the only sectors to see a decline in gross earnings during the quarter.
Year-on-year, gross earnings grew by R31.2 billion or 3.2%, between September 2024 and September 2025.
Basic salaries and wages also increased, rising by R7.8 billion from R903.4 billion in June to R911.2 billion in September. Bonuses saw a large jump of 10.9%, increasing from R56.7 billion to R62.9 billion during the same period. In contrast, overtime payments fell sharply by 11.1%, dropping from R29.9 billion to R26.6 billion.
How does salary growth compare with inflation?
While quarterly earnings growth was modest, the 4.3% annual increase is higher than the inflation rate. With inflation expected to average 3.5% in 2025 and ease further later in the year, salary earners are experiencing real gains in purchasing power. This is a rare and encouraging development in an environment where inflation pressure has been relatively subdued.
What is happening to employment levels?
The QES showed that employment rose slightly over the quarter but remained lower year-on-year. Between June and September 2025, total employment increased by 29,000 jobs, moving from 10.52 million to 10.55 million. This 0.3% rise was driven mainly by increases in community services (up 39,000 jobs or 1.4%), trade (up 6,000 jobs or 0.3%) and mining (up 5,000 jobs or 1.1%).
Employment in electricity and transport remained unchanged. Declines were recorded in business services (down 12,000 or -0.5%), manufacturing (down 5,000 or -0.4%) and construction (down 4,000 or -0.7%).
However, the annual comparison paints a more challenging picture. Total employment decreased by 79,000 jobs between September 2024 and September 2025, marking a 0.7% drop. Full-time employment fell by 0.2% quarterly and 0.8% annually. Part-time employment increased by 4.6% over the quarter but declined by 0.6% year-on-year.
How does the QES compare with the QLFS?
The QES findings contrast with results from the Quarterly Labour Force Survey (QLFS), which recorded an increase of 248,000 employed individuals in the third quarter, bringing the total to 17.1 million. The QLFS also reported a decrease in the unemployment rate, from 33.2% in the second quarter to 31.9% in the third.
The difference lies in what each survey measures. The QES is an employer-based survey that tracks jobs in the formal, non-agricultural sector. The QLFS is a labour survey that includes the entire South African workforce, covering both formal and informal employment.
Recent updates to QLFS definitions created clearer distinctions between groups, such as the not economically active population, those outside the labour force and the potential labour force. These adjustments shifted individuals between categories but did not materially change the measurements of employment and unemployment.
What does this mean for the workforce?
Taken together, the data indicate a mixed landscape. The QLFS suggests an improvement in overall employment conditions, while the QES points to continued pressure within formal, non-agricultural employment. At the same time, salary growth remains ahead of inflation, offering some relief to South Africans who are feeling the strain of the cost of living.
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