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While some headline data suggests that South African consumers have it a bit easier right now compared to recent history, the cost of living is still too steep for most people. A four-person household receiving a minimum wage does not have enough money to afford a nutritious diet. To address the cost-of-living challenge, South African companies need a clear understanding what employees need, financially, to cover costs for housing, basic nutrition, transport, and healthcare. This calls for in-depth research into what a living wage would be—moving beyond national averages to understand what employees really need—and integrating these insights into strategic workforce planning.
South Africa’s real GDP per capita declined by a cumulative 4.2% over the past 10 years. A drop in this metric is a trend generally associated with declining standards of living and economic instability. South Africans feel the impact of economic instability at the community level where economic issues result in many social challenges, including crime and gender-based violence. To support communities, we advocate for businesses to consider the triple bottom line: people, planet and profit. Initiatives like supporting access to basic services (healthcare, recycling projects, etc.) can provide for greater community stability during times of economic variability.
In 2025, South Africans faced several key challenges that have (or could in the future) reduced their access to healthcare: high inflation on healthcare costs; interruption in HIV and TB treatment delivery due to funding disruptions from the US; and speculation about the reduction / elimination of medical aid tax credits. South Africans expect their employers to do more to provide them with access to healthcare. Aside from directly funded healthcare benefits and contributions towards medical aid, other options to support employee wellbeing include supporting physical fitness, providing preventative care, offering mental health services, and running in-house educational programs.
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South African workers are concerned that disruptions from extreme weather events will impact their ability to do their job. A drought-induced lack of water supply would, for example, undermine water-intensive agriculture and mining. Heat stress can make it difficult or even life-threatening for mine and farm workers to do their jobs. Employees need employers to take climate action towards safeguarding their ability to do their jobs. To achieve this, data analysts play a critical role by identifying physical climate risks across every location and community within a company’s value chain. This analytical depth is required to understand the impact of e.g. heat stress on a specific set of employees and their capacity to perform their role.
In this edition:
South African views on the cost of living, economic stability, health, and climate change
Insights from PwC’s Voice of the Consumer Survey 2025
PwC’s recently published Voice of the Consumer Survey 2025 explored the macro factors that South African consumers believe could have the greatest impact on the country soon. Top concerns identified was the cost of living, economic instability, health risks, climate change, social inequality, food insecurity, and environmental damage.
It has never been more important to engage and listen to the workforce, cultivate a people-centric environment, and support what matters most to employees. If South African companies want to deliver growth and transformation in a world of exponential innovation and technological disruption, business leaders must take care of their workers.
Key content in this report includes:
- Cost of living: Improving food security requires that workers earn a living wage
- Economic instability: Employers need to make (and measure) impacts in their communities
- Health risks: Consumers are concerned about the cost and availability of healthcare
- Climate change: Extreme and chronic weather events impact people’s ability to do their jobs
- How we can help with employee wellbeing
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Contact us
PwC Africa ESG Platform Leader, Strategy& and Chief Economist, Strategy& South Africa
Tel: +27 (0) 82 708 2330
