The cost of living in South Africa will differ depending on the province and city you reside in and what you consider basic necessities. Many low-income households are not on medical aid for example, whereas a middle-class family might consider this a necessity.
If you are unable to keep up with the rising cost of living and you're battling to make your debt repayments each month, Meerkat can help you by reducing your monthly debt repayment by up to 50% with debt review.
In this blog post, we'll consider rent, groceries, transportation and utilities.
Rent in South Africa
One of the major expenses that can significantly impact your cost of living is housing. The rental prices in South Africa can vary greatly depending on the location and size of the property. For example, living in major cities like Johannesburg or Cape Town can be more expensive compared to smaller towns or rural areas. It is advisable to research and compare rental prices in different areas before making a decision.
If you choose to live in Cape Town, on average, a one-bedroom apartment in the city center can cost you about R13 000 per month. However, if you are willing to live in the outskirts or in a less popular neighbourhood, you can find more affordable options.
The average cost of rent in South Africa
When comparing the first quarter of 2022 with the first quarter of 2023, the highest increase across provinces in South Africa was in the Northern Cape with a 10.2% increase. The average monthly rent in the Northern Cape is now R9248, according to data provided from PayProp.
In the Western Cape, there was a 5% yearly increase, with the average monthly rent costing R9872—the most expensive in the country.
The average rent in Gauteng increased by 3.1%, with the average monthly rent in the province coming in at R8641.
KwaZulu-Natal could set you back by R8801 for your monthly rent.
The cheapest province for the average monthly rent in South Africa is in the North West province, with an average monthly rent of R5738.
The cost of groceries for one person in South Africa
Apart from rent, other expenses such as groceries, transportation, and utilities also contribute to the overall cost of living.
The cost of food in South Africa can vary depending on whether you choose to shop at local markets or larger supermarkets, the size of your household and your dietary preferences.
On average, a monthly grocery bill for a single person can range from R2000 to R4000, depending on your eating habits and dietary preferences.
By planning your meals and shopping wisely, you can save a considerable amount of money on groceries.
Read: What is the cheapest grocery store in South Africa?
The cost of utilities in South Africa for a single person
You also have to consider utilities, including electricity, water and internet. The cost of utilities can vary depending on the size of your household and your usage. You can expect to pay around R1500 to R2500 per month for a single person living in South Africa. Of course, these costs can vary depending on your usage, the size of your household and the municipality you stay in.
It is also advisable to be mindful of your energy consumption and explore ways to reduce your utility bills, such as using energy-efficient appliances and practicing water-saving techniques.
Read: How to save and get the most out of your prepaid electricity
Transportation Costs in South Africa
Transportation is another aspect to consider when calculating your cost of living. Using public transportation can be a cost-effective option, especially for daily commuting. A bus ticket could set you back between R350-R500 per month, with a taxi costing around R15 per trip.
If you prefer the convenience and flexibility of owning a car, you should factor in expenses such as fuel, insurance, and maintenance.
- 95 Petrol (inland) currently costs R22.83 and Diesel (0.005%) R20.52 per litre.
- 95 Petrol (coastal) currently costs R22.11 and Diesel (0.005% R19.81 per litre.
You should brace yourself for a huge price increase for fuel across the country in September. News24 reported that petrol could increase by almost R1.46 a litre and Diesel increasing by around R2.60 a litre.
The cost of living crisis in South Africa
Did you know: for more than 20 days of the month, South Africans are surviving on less than 20% of their salary.
According to FNB, middle-class clients spend up to 80% of their salary within only five days of receiving their salary.
In South Africa, more than 27 million people make use of formally recognised credit services. Based on this 27 million, more than 50% are considered over-indebted.
According to the Financial Outlook Study 2022, 95% of low-income individuals used credit to afford basic needs such as clothing, transport food and bills.
If this is you, we can help reduce your monthly debt repayments by up to 50% with debt review.
Read: How you can manage your money during a cost of living crisis
The minimum wage in South Africa in 2023
Since 1 March 2023, the minimum wage in South Africa increased from R23.19 to R25.42 per hour.
What is the average monthly salary in South Africa?
Since November 2022, the average monthly salary in South Africa has decreased from R26 002 to R25 304 in February 2023. The unemployment rate in South Africa for the first quarter of 2023 is 32.9%.
What is an ideal salary in South Africa?
If you want to live comfortably in South Africa, according to Numbeo, a family of four would need just over R36 000 per month, excluding rent.
And, a single person in South Africa would need just over R10 000 excluding rent per month.
What is the top 1% salary in South Africa?
To be part of the top 1% will depend and differ on where you are situated in the world. The top 1% salary in South Africa is relatively lower compared to some other countries. Factors such as economic development, GDP per capita, and overall wealth distribution contribute to these differences. You will need to have a lot less money in SA to join the ranks of the top 1% than you would need to join the world’s richest country (Monaco), for example.
In South Africa, the income inequality gap is also quite significant, with a large portion of the population earning low wages.
In South Africa, 18.9% of the population lives on less than R28 per day.
According to an article published by BusinessTech, the top 1% salary in the country is estimated to be around R2.5 million per year and R215 330 per month. This means that individuals earning this amount or more fall into the top 1% income bracket. The top 10% make R65 310 per month and just over R783 000 per year.
It's important to note that the top 1% salary can vary depending on the region. As mentioned earlier, the cost of living and average monthly rent differ across provinces. Therefore, the top 1% salary in the Western Cape, where the average monthly rent is the highest, might be higher compared to other provinces.
Overall, the top 1% salary in South Africa is influenced by various factors, including regional disparities and economic conditions. While the average monthly rent in the Western Cape remains the highest, individuals earning around R2.5 million per year or more can be considered part of the top 1% income bracket in the country.
Which job has the highest salary per month in South Africa?
When looking at an article published by MyJobMag South Africa, the highest paying job in the country in 2023 is a specialist doctor, earning on average R1 123 890 per year.