South African employers were forecast to increase pay by an average of 6.1% in 2024 in an attempt to attract and retain staff amid high inflation and a challenging labour market. However, this optimistic prediction proved different in practice, with average salary increases consistently slowing down and sitting well below the inflation rate. The latest forecasts now suggest more modest salary increases of 5.0% for 2025, with some expert predictions as low as 4.3% based on current economic projections.
What makes salary negotiations even more critical in 2025 is the tax burden of modest increases. Due to unchanged tax brackets, any salary increase above 5% could result in higher tax obligations through bracket creep. Tax experts warn that employees would actually require a 6.13% salary increase just to keep pace with inflation-adjusted tax implications, meaning smaller increases may leave you financially worse off.
For professionals changing jobs in South Africa, the landscape looks dramatically different from modest internal increases. Historically, professionals changing jobs have seen salary increases of 10-15% as standard, with exceptional candidates potentially securing 20% or more, particularly when their skills are in high demand. While inflation is expected to be around 5.1% in 2024 and then decline to 4.8% in 2025 and 2026, the salary increases associated with job changes are often significantly higher than the inflation rate.
At SkillzPage, with almost 20 years of experience placing IT, Engineering, and Finance professionals, we've facilitated thousands of successful job transitions where candidates secured market-related increases that far exceed the modest percentages offered to employees staying in their current roles.
Companies budget differently for new hires versus existing employee increases for several key reasons:
Companies, particularly in IT roles like Software Development, require applicants to complete technical assessments during the interview process. Here's the reality: put 10 Senior Software Developers with similar backgrounds through identical technical tests, and results will vary dramatically. Some excel while others struggle, directly impacting salary offers. Exceptional performance often justifies premium compensation, while average results typically receive standard market-related increases.
While general market increases hover around 5-6%, specialist recruitment agencies like SkillzPage consistently negotiate market-related increases of 10-17% for candidates changing roles through:
Every recruiter and employer in South Africa requests your three most recent salary slips before making offers. This isn't discrimination—it's how our job market operates. After guiding thousands of professionals through salary negotiations, we've learned that transparency and cooperation open doors—resistance closes them.
While aggressive salary negotiations can yield significant increases, overpricing yourself creates substantial risks. For every role, there are multiple qualified candidates willing to accept market-related increases, and pricing yourself too high can eliminate opportunities entirely.
When changing jobs, consider the entire compensation offering:
Phase 1: Preparation
Phase 2: Strategic Positioning
Phase 3: Professional Negotiation
Changing jobs in South Africa offers significant opportunities for salary increases well beyond the modest percentages available to employees staying in current roles. While general market increases hover around 5-6%, strategic job changes consistently deliver 10-17% improvements for candidates who understand the market dynamics.
Success requires three critical elements: market knowledge, professional positioning, and strategic timing. Working with specialist recruitment agencies provides access to opportunities and negotiation expertise that individual job seekers often lack. Transparency about current compensation, combined with realistic market expectations, opens doors that resistance closes.
Your next job change represents an opportunity to advance both your career and compensation significantly. With the right approach, preparation, and professional guidance, you can achieve market-related increases that far exceed the modest adjustments available in your current role.
Ready to explore strategic job change opportunities? Contact Skillzpage for expert guidance on maximizing your salary potential in South Africa's dynamic job market.
