South Africans should be netting at least R20,000 per month for a 40-hour work week if they wish to achieve a decent, albeit humble, standard of living and level of dignity.
This latest living wage figure was announced by the Living Wage South Africa Network (LWSAN), a registered non-profit organisation, that champions the drive to implement the concept locally.
“We encourage businesses and government entities to adopt this living wage voluntarily as a matter of human decency and social sustainability,” says Professor Ines Meyer, chairperson of the LWSAN.
It is important to highlight that the living wage describes take-home earnings before benefits are added or deductions applied.
How the 2026 Living Wage was decided
Meyer an expert in organisational psychology at the University of Cape Town says a study of 2,000 participants revealed a cost of living range from which the 2026 living wage was developed.
The average respondent with net pay below R14,000 was unable to live a decent life whereas everyone with net pay above R25,000 could do so to at least some extent.
“We settled on the midpoint of R20,000 because it adequately satisfies the four main criteria that qualify the living wage at a national level,” she says.
This is the point at which it starts becoming possible for earners:
- to realise the lives they value;
- Save something for the future;
- Be prepared for occasional emergencies, like unforeseen medical costs; and
- Therefore, enjoy a decent standard of living and human dignity
However, living costs can vary significantly from region to region, and employers might want to increase their minimum wage level for their particular location.
“They can follow the same methodology employed by LWSAN and we invite them to contact us for assistance,” says Meyer.
Living wage vs minimum wage
The living wage differs substantially from the legislated minimum wage, which results from negotiations between the government, business, industry experts and labour representatives.
“This process risks overlooking the struggles of the people who depend on it; we talk to them directly and give them a voice through our experience-focused data collection methods,” says Meyer.
While the minimum wage is compulsory, the living wage is purely voluntary. “We believe that organisations that adopt it willingly will see it as an investment to avoid people getting trapped in poverty rather than a grudging administrative obligation,” she says.
Where will the money come from?
At first blush, embracing the concept may seem like a major expense for organisations, especially those heavily dependent on human labour. However, as Meyer points out, the living wage is not a figure but an approach.
South Africa suffers from low economic growth and social instability that stems from the stifling poverty suffered by many of its citizens.
“When people earn at least the living wage, they can spend more on previously unmet needs, which creates greater demand on production and for labour, which creates more jobs, and so on,” says Meyer.
“If people earn enough not to stress about money, they also become more productive employees. It is an investment rather than a cost to the business.”
The socially responsible shareholder
Businesses and the government are not the only stakeholders of this economic potential. Many private investors now use their stock ownership to pressure companies to act responsibly and sustainably in terms of their obligation to society, the planet and inclusive prosperity.
“This new generation of shareholders invests with the purpose of challenging the status quo and bringing about meaningful change, and they are ideal ambassadors for the living wage,” says Meyer.
In fact, many parties – individually and collectively – have the power to influence adoption and Meyer hopes to see interest skyrocket in the coming year.
A constitutional concern
Section 10 of the Constitution of South Africa says that: “Everyone has inherent dignity and the right to have their dignity respected and protected.”
Yet, many still lack access to economic dignity and the living wage offers a mechanism the country can use to honour that right.
“We need to stop seeing the Constitution as a mere legal reference but rather a call to action that motivates us to uplift those for whom it was written; the living wage provides that opportunity,” says Meyer.
