South African employers could be paying December salaries as early as the 13th which means that employees could be faced with a 42 day gap before their next payday on the 25th, or 49 days until their next paycheck for month-end earners.
South African consumers face financial pressure during the festive season as they try to stretch their salaries while spending more than usual.
According to a Standard Bank’s analysis South Africans spend their salaries faster in the last two months of the year.
In November salaries are spent faster than in December while in December salaries last slightly longer, with customers taking two to three extra days on average to spend 50% of their income compared to November.
Shené Mothilal, Solution Owner of Digital Money Manager at Standard Bank said: “The trend in November is largely driven by Black Friday, which encourages extended spending. In December, while salaries last longer, the financial strain is tied to early pay dates and the long gap before January’s payday."
Top spending categories for December and January
Due to November salaries being spent quickly and December salaries stretched to cover nearly two months, many consumers have to rely on December pay to take care of their festive and New Year expenses.
Spending trends differ by customer segment:
- entry-level market customers prioritise groceries early, likely stocking up for festive consumption
- emerging high-income earners increase loan payments in November to support holiday spending
- young professionals focus on transport, groceries, restaurants, and clothing before Christmas, often shifting debit orders earlier in December
- wealthier clients allocate a larger share to holiday travel and related insurance compared to other segments.
Overall, these are the trends in spending categories for individuals:
- December: clothing (0.5%); fitness and self-care (0.3%); shopping centres (0.3%); home (0.2%); and entertainment (+0.2%).
- January: education (0.7%); digital and connectivity (0.1%); savings (0.1%); entertainment (0.1%); and holiday and travel (0.1%).
How to prepare
The financial pressure that consumers face during the festive season highlights the need for effective money management.
Mothilal said that understanding spending habits is important, particularly during the festive season when budgeting demands increase. Consumers need to budget effectively to avoid the post-holiday financial pinch.
Ayanda Ndimande, Business Development Manager at Sanlam Credit Solutions that when you are creating your budget the first step is to have an understanding of how much you earn.
Then you can create a budget that takes into account your financial priorities, and only committing to spend what you can afford. Having structure and a plan takes the emotion out of spending decisions.