Data shows that how much you earn is highly affected by gender and race, shedding a light on the huge salary disparity in South Africa!
In South Africa, certain demographic groups earn substantially more than others, which contibutes for a huge salary disparity and inequality, as confirmed by Statistics SA’s Quarterly Labour Force Survey (QLFS) data.
In general, 50-year-old white men with tertiary qualifications and full-time jobs earn the highest incomes, particularly in Gauteng. Conversely, young black females with limited education in Limpopo and the Eastern Cape face significant financial challenges, emerging as one of the poorest demographic groups in the country.
The QLFS analysis – focused on income and earnings data collected from households across South Africa and representing nearly 13 million employees -, sheds light on demographic trends. The study shows that the median income tends to be higher for older employees than for younger ones, reflecting their greater experience. Additionally, racial disparities persist, with white respondents earning more than coloured and Indian employees, who, in turn, earn more than black individuals. On top of that, women earn around 80% of men’s median income, highlighting a gender gap in earnings as well.
Age
As people get older, their median income generally rises. By the end of 2022, a worker aged 15 to 24 typically earned around R4,300 monthly, whereas someone between 55 and 65 earned about R7,500—nearly 75% more. Interestingly, younger employees have seen their wages grow faster than older ones. Since 2017, the earnings of younger workers have risen by 32%, while those of older workers increased by 25%.
Gender
Men typically earn a median monthly salary of R6,000, which is higher than the R4,800 median for women. Despite this, women’s earnings have been growing at a faster rate than men’s. Since 2017, the median earnings for women have increased by 26%, while for men, it was 20%. This has led to a reduction in the gender pay gap. In 2022, women earned on average 80% of what men earned, compared to 76% in 2017. Interestingly, in certain occupations, women even earn more than men.
Race
In 2022, the report shows that for the white population, the median monthly earnings were R21,000, while for Indians/Asians, it was R15,000. Coloured individuals earned R5,000, and black Africans earned R4,684. Digging deeper into the data, it’s evident that black employees’ earnings have been growing much faster compared to other groups. Since 2017, black workers’ earnings increased by 27%, while for whites, Indians, and Asians, it was 20%. The earnings for the coloured population saw a smaller increase of only 15%.
Province
From 2017 to 2022, Gauteng stands out as the only province consistently reporting median monthly earnings above the national average. In 2022, workers in Gauteng earned a median income of R7,500 monthly, followed by the Western Cape (R5,500) and North West (R5,000). Limpopo reported the lowest median monthly earnings at R4,200. This means that someone working in Gauteng is likely to earn nearly 80% more than someone from Limpopo, even if the latter managed to secure a job in the province with the highest unemployment rate in South Africa.
Although median incomes in Limpopo are increasing at a faster rate than in Gauteng, the difference is minimal. It would take decades before they become comparable, with earnings in Limpopo rising by 27% since 2017, compared to a 25% increase in Gauteng.
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