[South Africa] Pay gap between December and January increases financial pressure

Employers in South Africa could pay December salaries as early as December 13 this year, leaving employees facing a 42-day gap before their next payday on January 25, 2025, or 49 days for month-end earners, MSN reports.

As a result, South Africans could potentially experience heightened financial pressure during the festive season as they try to stretch their salaries to last through a period when increased spending is the norm. 

Analysis from Standard Bank revealed that South Africans spend their salaries faster during the last two months of the year.

November salaries are spent faster than December’s and during December salaries last slightly longer; on average customers reportedly take two to three extra days to spend 50 per cent of their income compared to November.

Commenting on the bank’s findings, Shené Mothilal - Solution Owner of Digital Money Manager at Standard Bank - said, “The trend in November is largely driven by Black Friday, which encourages extended spending. In December, while salaries last longer, the financial strain is tied to early pay dates and the long gap before January’s payday."

Source: MSN

(Quotes via original reporting)

Employers in South Africa could pay December salaries as early as December 13 this year, leaving employees facing a 42-day gap before their next payday on January 25, 2025, or 49 days for month-end earners, MSN reports.

As a result, South Africans could potentially experience heightened financial pressure during the festive season as they try to stretch their salaries to last through a period when increased spending is the norm. 

Analysis from Standard Bank revealed that South Africans spend their salaries faster during the last two months of the year.

November salaries are spent faster than December’s and during December salaries last slightly longer; on average customers reportedly take two to three extra days to spend 50 per cent of their income compared to November.

Commenting on the bank’s findings, Shené Mothilal - Solution Owner of Digital Money Manager at Standard Bank - said, “The trend in November is largely driven by Black Friday, which encourages extended spending. In December, while salaries last longer, the financial strain is tied to early pay dates and the long gap before January’s payday."

Source: MSN

(Quotes via original reporting)