South African employees can anticipate real salary increases in 2026, bolstered by a strengthening economy, according to projections released by PayInc.
The salary data publisher forecasts continued income growth, citing lower inflation, a firmer rand and improving economic conditions as key drivers. Although the average nominal salary flattened in December 2025 at R21,397, it remained 1.8% higher than the previous year, according to Shergeran Naidoo, Head of Stakeholder Engagements at PayInc.
This positive trend is occurring alongside a shift in employer strategies, with companies increasingly prioritizing benefits packages alongside traditional salary hikes to attract and retain skilled workers. The South African Reward Association (SARA) predicts a greater emphasis on integrated rewards, development opportunities, and employee wellbeing initiatives.
A recent poll conducted by Andrew Levy Employment Publication indicated that companies expect salary increases to remain consistent with previous settlements, with approximately 67% of respondents predicting raises between 4% and 5.9%. However, the poll also suggested that wage expectations are still adjusting to South Africa’s lower inflation target adopted in 2025.
The growing importance of skills retention is significantly influencing remuneration strategies. The latest report from Remchannel Quarterly reveals that skills retention now accounts for 25.8% of the criteria companies consider when awarding salary increases, signaling a move towards skills-based pay systems.
SARA’s Ronél Camacho emphasized the demand for organizations to understand and respond to employee desires for meaning, balance, and authenticity in their work. She stated that effective retention strategies commence with hiring the right people, providing meaningful onboarding, and establishing fair and transparent reward structures.
Specific salary ranges for 2026, as compiled by Pnet and the South African Reserve Bank (SARB), vary significantly by job function. For example, Executive Managers/Directors can expect to earn between R83,333 and R125,000, while IT Support Technicians typically earn between R20,000 and R30,000. Financial Managers can anticipate salaries ranging from R48,237 to R70,260, and Sales Managers between R30,000 and R43,816.
The PayInc Net Salary Index, which tracks the net salaries of approximately 2.15 million salary earners in South Africa, ended 2025 on a positive note, reflecting a gradual improvement in economic activity and resilience despite ongoing challenges. Independent Economist Elize Kruger remains optimistic about continued real salary growth in 2026, citing record-high commodity prices and a rand trading below R16/USD for the first time since 2019 as contributing factors.
Carpe Diem Research forecasts real GDP growth of 1.6% in 2026, up from an estimated 1.3% in 2025.
