PayInc said on Tuesday that real take-home pay for South African salary earners fell to its lowest level in two years in May 2026, as higher consumer prices and fuel costs eroded purchasing power.
The PayInc Net Salary Index showed that, after adjusting for inflation, average net salaries declined compared with a year earlier, despite increases in nominal pay. The report linked the drop to rising inflation, more expensive transport and broader economic uncertainty weighing on household budgets.
PayInc noted that weaker real pay is likely to restrain discretionary spending, with households prioritising essentials as costs climb. The data reflect conditions in May and capture salary payments processed across its network.
Read more in the full announcement.