How much do Govt. workers earn and can they afford homes?
Ever wondered what the average government employee salary is and how much they can spend on a home? We've answered a few questions for you.
The average government employee in South Africa earns a monthly salary of R41,200, according to BusinessTech's research.
This is significantly higher than the national average, which includes both public and private sector earnings.
The National Treasury's 2024 compensation and employment report reveals that the average government salary has consistently exceeded the national average by over R10,000 since at least 2019.
This wage gap is attributed to the government's efforts to attract and retain skilled professionals in critical sectors.
What does this mean for government employees' home-buying power?
According to BusinessTech's calculations, the average government employee can afford to buy a house valued at up to almost R1.2 million. This is based on the assumption that monthly bond costs should not exceed 30% of the employee's single or joint gross monthly income.
Using Absa's bond calculator, the publication worked out that the average government employee can afford a monthly bond repayment of around R12,360, assuming a 20-year home loan period and an interest rate of 11.25%.
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