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What is the average Salary in South Africa?

The average salary in South Africa is on the rise but is still much lower than in countries such as the UK or other Western economies.

Businesses outsource operations overseas for many reasons. To some, it’s a chance to broaden the talent pool or expand into another country. However, top of any list is the ability to save money and attract staff in a budget-friendly manner. That’s why India and the Philippines have always led the way as outsourcing destinations. However, changing customer demands and evolving business strategies have seen people look towards other locations such as South Africa.

South Africa offers a slightly different proposition from some of the low-cost destinations. While the cost of labor is generally less than in places such as the US, UK, or Australia, it has much more to offer including a highly diverse and educated workforce, friendly regulatory environment, and familiar business culture.

All of this means businesses can outsource all sorts of professional roles from customer services, to marketing, content writing, IT, and much more. Even so, costs will always be a major factor which is why one of the first questions businesses ask when considering outsourcing is what is the average salary in South Africa?

Average salaries

Salaries can vary from profession to profession with some being more competitive than others, compared to Western economies. Halfway through 2024, the average monthly earnings in the formal sector was R27,450, a 4% increase from the same period in 2023.

However, there is a wide variation in salary levels with the top earners bringing in much more than the lowest. Men also have significantly higher salaries than women.

Some of the highest-paid professionals can be found in the IT and finance sectors and levels can vary enormously from one region to another. As such you can only make truly direct comparisons from one industry to another. In call centers, for example, the average starting salary for South African agents was around 30% of that of their counterparts in the UK.

The average salary for IT professionals in South Africa is ZAR 16,400, or £740 per month, while UK workers can expect to earn around £3300.

Costs, therefore, can vary and wages have been rising in the country as the economy picks up. The government has a positive pro-growth agenda and is keen to develop every area of the economy. That means increasing the number of graduates, improving technological infrastructure, and raising the number of highly qualified professionals in the sector.

Even so, generally speaking, there remains a sizeable discount on South African workers compared to the UK. For that businesses can also benefit from everything else that comes from working in South Africa including:

• Educated workforce: University attendance is high leading to a highly diverse and educated workforce across a range of disciplines.

• Good language skills: English is commonly spoken making South African call center agents a great match for customer service roles.

• Good IT structure: High-speed broadband is widely available which makes it easy to communicate via video chat. The time difference is relatively low between the UK and Europe and South Africa wh