Cost of Living
What is the cost of living in South Africa?
No doubt you would like to try to estimate how far your rand will stretch and how much money (if any) you will have left after paying your bills.
Anyone planning to live in South Africa, particularly retirees, should take care not to underestimate the cost of living, which has increased considerably in the last decade. South Africa isn’t a cheap destination any more, particularly following property price increases in the 21st century and the strengthening of the Rand, although there’s a huge disparity between the cost and standard of living in the prosperous regions and those in the poor areas: the former is First World, the latter Third World (or, to use the politically-correct terms, the former is Developed World, the latter Developing World). Inflation was running at almost 10 per cent in 2003 but it has been significantly reduced.
The cost of living in the popular (with expatriates) parts of South Africa’s major cities is much the same as in cities in Australia, France, Germany, the UK and the US. Luxury and quality products are expensive, but wine and spirits are relatively inexpensive, as is dining out, although there are fears that the steep price rises seen in some restaurants and hotels over the last couple of years will deter tourists from visiting South Africa.
Food costs in South Africa are similar to those in most other western European countries, although you may need to modify your diet. A budget of R2,000 to R3,000 (€200 to €310) feeds two adults well for a month, excluding fillet steak, caviar and alcohol (other than a moderate amount of inexpensive beer or wine). On the other hand, it is possible to live frugally in South Africa if you are willing to forego luxuries and ‘live off the land’. Shopping for selected ‘luxury’ items (such as stereo equipment, electrical and electronic goods, computers and photographic equipment) abroad can also yield savings.
Overall, it is difficult to calculate an average cost of living in South Africa, as it depends on an individual’s circumstances and lifestyle. A list of the approximate minimum monthly major expenses for an average single person, couple and family of four is shown in the table below. If you work in South Africa, you need to deduct the appropriate percentage of your salary for income tax and social security contributions. The numbers in brackets refer to the notes following the table.
| ITEM | MONTHLY COSTS (R) |
||
| Single | Couple | Family Of Four |
|
| Housing (1) | 3,500 | 4,500 | 6,000 |
| Food (2) | 1,750 | 2,500 | 4,000 |
| Utilities (3) | 300 | 400 | 700 |
| Leisure (4) | 800 | 1,250 | 2,000 |
| Transport (5) | 700 | 800 | 1,100 |
| Insurance (6) | 400 | 600 | 1,000 |
| Clothing | 300 | 600 | 1,200 |
| Totals | 7,750 | 10,650 | 16,000 |
- Rent or mortgage payments for a modern or modernised apartment or house in an average suburb, excluding major cities and other high-cost areas. The properties envisaged are a studio or one-bedroom apartment for a single person, a two-bedroom property for a couple, and a three-bedroom property for a family of four. 2. Doesn’t include luxuries or expensive alcoholic drinks. 3. Includes electricity, gas, water, telephone, pay (e.g. satellite) TV and heating costs. 4. Includes all entertainment, restaurant meals, sports and holiday expenses, plus newspapers and magazines. 5. Includes running costs for an average family car, plus third party insurance, annual taxes, petrol, servicing and repairs, but excludes depreciation or credit purchase costs. 6. Includes ‘voluntary’ insurance such as supplementary health insurance, household, third party liability, travel, car breakdown and life insurance.
Also in this section
- Banks: Where to manage your finances
- Accounts: How to open a bank account in South Africa
- Currency: What is the currency used in South Africa?
- Obtaining Cash: How to get cash for daily use
- Importing & Exporting Money: How to receive and transfer money
- Cost of Living: What is the cost of living in South Africa?
- Double-Taxation Treaties: What countries have treaties with South Africa?
- Income tax: What you need to know about income tax in South Africa
- Capital Gains Tax: Who is liable to pay Capital Gains Tax in South Africa?
- Property Taxes: All you need to know about property-related taxes
Comments from other users
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Cost of utilities
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cost of living
I would say DOUBLE all those numbers and you would be close.......
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Cost of Living
To live the way that most normal people wish to I think that you would need a salary of R40,000 P/M minus the usual standard things like Medical Aid, Insurance as previously mentioned, vehicle and running costs, Housing within a normal three bed house in a good area allow R1,000,000, School Fees (Extortionate) and should after care be required then allowances must be made. Holiday's especially in school holidays are also extortionate, plus the many public holidays (of which there are far too many) can cost lots of money if you're that way inclined. I do not in any way dis-agree with the previous comments, SA is a wonderful country with lots of places to see but also be prepared to pay for the priveledges. I can go back to 1974 when a beer cost 16cents, you could feed a family of four for the month on R30 and a full tank of petrol cost R7 to fill a Volvo 122S, a four bed house with pool cost R18,000, ah yes those were the days but that was then and this is now. Lets be realistic and I don't think my R40,000/m is far off being correct for all the items mentioned but then there aren't many who earn that, if they can get a job that is.
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Underestimated costs
1 You may find apartments to rent at this price but you won't be paying a mortgage for anything less than double
3 Massively incorrect @ R300. Utilities will cost around R2000 at least (for a couple). Satellite TV is about R500 alone. Electricity is around R800, telephone easily about R600.
4 R800 for Restuarant meals, sports, holiday. newspaper and magazine expenses. R850 will get you 1 night in the cheapest seedy hotel with nothing to eat.
5 R700 is about 1.5 tanks of petrol. 3rd party insurance alone is hardly recommended when the chances of being wiped out by a taxi which has no insurance is quite high.
You also neglect to add medical aid which is highly recommended considering the state of government hospitals. Add R1500 for a basic hospital plan for a couple.
Also home insurance is a must, add another R1000-
update the cost of living schedule..
I completely agree.. swaziland is cheaper to live in and my expenses hugely surpassed those mentioned in this article. bearing in mind the article is dated 2005 (or so i recall) Warren's comment is on point for 2010! Please update this article.. asap.
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Living cost
Hello,
If the living expence in south africa is more then R 10000, so how can manage a couple family.
If husband doing a middle class job, i think he will not get every month more then R 5000 per month.
What you people think about this.
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i agree very much with this comment
never the less, we are a family of three, and our monthly bills come to R11800 per month. this is living humbly, paying off a car @2600, medical (other half paid for by hubby's company, rent for a two bed home @4000 telephone alone is normally R700 - 1000. we dont party, dont eat lavishly, infact my husband owns half th family farm and most of our meat is supplied for free! so that would have added at least another R400 onto our bill!
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Cost of living?
I live in South Africa and I dont want to sound nasty, but I'm not sure when this article was published, but figures are way way off ...
Rent is never including water and lights/gas
Telephone is seperate, internet is seperate, medical aid is average R3700.00 for 2 people comprehensive. You take it because you dont want to land up in a general hospital. Rent for a
1 bed cottage/falt/apartment ranges from R3500 up, a 3 bed house ranges from R7500.00 There is no furniture ever so if you are moving from overseas be sure to have at least your bed with you. Right groceries, For a family of four you need at least R2000.00 per week, Food prices have rocketed because of the fuel prices e.g. 2.5kg white sugar has gone up from R12.00 to R18.00 Beef is between R53.00 and R68.00 per kilo, lamb R63.00 per kilo. Chicken R25-R30.00 per kg and this is country wide...there are NO cheaper areas or more expensive areas here. Petrol price is the same throughout, from JHB to Cape Town to Durban etc. Bottom line, 3 years ago a salary of R10000.00 was brilliant...now u need at least R50-R60 000 pm. Oh yes I havent added the cars which every family member has to have, the insurance..........-
cost of living sa 2012
it has caught up with rest of world and exceeds in some cases - insurance high because of theft and crashes, utilities very high - unemployment high - inefficient supply chains and poor admin in governmenrt- school fees high
but lots of people who earn a lot so no problem to them - but for the poor - a bleak place
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To end on a positive note, however, it is a very beautiful country with a lot of warm and friendly people.