What a R20,000 Living Wage Really Means for South Africa’s Lowest-Paid Workers

The figure has sparked debate, with some South Africans questioning whether R20,000 is enough to cover their own monthly expenses.

But LWSAN says the figure is not intended to represent what the “average” South African should earn.

Instead, it is calculated with the country's lowest-paid workers in mind.

According to LWSAN spokesperson Ines Meyer, the benchmark is intended to highlight what low-income workers need to afford a decent standard of living for themselves and their families, with something left over for savings or unexpected expenses.

“If you feel you cannot cover your monthly costs on an income of R20,000, imagine what it must be like for those who earn less,” Meyer said.

Living wage vs minimum wage

The Living Wage should not be confused with South Africa's national minimum wage.

The Living Wage is not a legal requirement. It is a voluntary benchmark that employers are encouraged to consider when determining what workers need to live with dignity.

LWSAN says the calculation is based on self-reported information from low-earning survey participants, reflecting the costs they face in their daily lives.

The national minimum wage, meanwhile, is the minimum amount employers are legally required to pay qualifying workers.

LWSAN says that at the current minimum wage of R30.23 per hour, a full-time worker could earn less than R6,000 per month, depending on the number of hours worked.

That income may need to cover food, transport, electricity, healthcare, accommodation and other household expenses.

Living from morning to morning

While many South Africans describe their financial situation as “living month to month”, LWSAN says the reality for some low-income households is even more difficult.

“We complain about living month-to-month but many low-earning families survive from morning-to-morning,” Meyer said.

The organisation argues that the Living Wage conversation should therefore focus on the circumstances of workers earning the least, rather than whether R20,000 would be enough for the average household.

For these workers, LWSAN says, the difference between earning enough to survive and earning enough to live with dignity can be significant.

The organisation is calling for a shift in how employers think about wages, arguing that workers' ability to live a decent life should be considered alongside business objectives.