South African Workers Struggling as Transport, Electricity Outpace Food Spending: Household Affordability Index Reveals Grim Reality

In January 2025, South African workers found themselves spending more than 57% of their wages on electricity and transport costs, leaving little room for food and other essentials. According to the latest Household Affordability Index by the Pietermaritzburg Economic Justice and Dignity (PMBEJD), this trend is squeezing the average worker’s ability to feed their families, with low-income earners suffering the most.

A Strained Household Budget

The Household Affordability Index tracks the cost of 44 basic foods across major South African cities, including Johannesburg, Cape Town, Durban, and Pietermaritzburg. In January, the average household food basket cost R5,433.70, a 2% increase from the previous year. While food prices continue to rise, the national minimum wage (NMW) has failed to keep pace, further stretching workers’ budgets.

For instance, basic items like potatoes, onions, and chicken livers saw price hikes of over 5%, while maize meal, cooking oil, and beef climbed by 2% or more. As prices for essential goods continue to rise, workers are forced to cut back on food spending.

The Struggles of Low-Income Workers

South Africa’s national minimum wage currently stands at R27.58 an hour. In January, a general worker earning the minimum wage took home R4,854.08 for a month’s work. However, when you consider that one wage must often support a family of four, the situation becomes even more dire. Each family member receives just R1,213.52 per month, which falls below the upper-bound poverty line of R1,634 per person.

With transport and electricity costs consuming R2,802.97 of a worker’s monthly wage, only R2,051.11 remains for food and everything else. Unfortunately, this amount is far from enough to purchase a basic, nutritious food basket for a family of four, which costs R3,830.05 in January.

Underspending on Food and the Food Poverty Line

The PMBEJD report highlights the shocking reality that workers’ families would underspend on food by at least 46.4%. Even if the remaining R2,051.11 was dedicated solely to food, it would amount to just R512.78 per person, far below the food poverty line of R796 per person.

The report notes that the average cost to feed a child a basic nutritious diet increased by R7.83 (0.8%) from the previous month, and by R22.64 (2.4%) compared to last year. In January, the cost to feed a child a basic nutritious diet stood at R976.39, making it an impossible feat for many families living on the minimum wage.

The Rising Cost of Hygiene Products

The report also reveals that the cost of domestic and personal hygiene products has risen by 4% year-on-year. In January, the average cost for these basic household essentials reached R1,045.64. For many South Africans, these essential hygiene products compete for space in the family budget with food, adding to the strain on already stretched finances.

A Stark Reality for South African Families

The latest Household Affordability Index paints a bleak picture for South African workers. As transport and electricity costs consume more than half of their wages, many families are left to choose between basic needs like food and hygiene products. With food costs continuing to rise, and wages failing to keep up, millions of South Africans are finding it increasingly difficult to feed their families nutritious meals.

As the cost of living continues to rise, it’s clear that urgent intervention is needed to address the widening gap between workers’ earnings and the cost of basic necessities.

National Minimum Wage Increased to R28.79 Per Hour, Effective 1 March 2025

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com