South African employers can make a difference in 2026 to employees’ concerns about their cost of living, economic stability at the community level, access to healthcare, and the impact of climate change on their ability to work
Johannesburg, 10 December 2025—PwC Strategy&1 is pleased to share its latest South Africa Economic Outlook report, entitled:
“South African views on the cost of living, economic stability, health, and climate change: Insights from PwC’s Voice of the Consumer Survey 2025”.
Our 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 in the near future. Top concerns identified for 2026 are the cost of living, economic instability, health risks, climate change, social inequality, food insecurity and environmental damage.
In our December 2025 economic outlook report, we unpack their top four concerns in more detail and reflect on how these impact employee wellbeing. Importantly, we also look at what employers can do to support their employees with these challenges.
“The South African economy is driven by household expenditure. However, consumers are looking at 2026 with concerns about their cost of living, economic instability, health risks, and climate change. While none of these trepidations are new, the imperative for employers to support their workers with these challenges has never been greater. Focussing on the wellbeing of the employee has tangible financial and other benefits for companies, and supports the stability of local communities where employees and their families live.”
To address the cost-of-living challenge, South African companies need a clear understanding what employees need to cover basic living costs
While some headline data (like monthly inflation and income indicators) 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. For example, a four-person household receiving one minimum wage income does not have enough money to afford a nutritious diet after transport and electricity costs are deducted. Due to employment and income constraints, one in five South Africans are considered moderately or severely food insecure.
To address the cost-of-living challenge, South African companies need a clear understanding what employees need 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. Although somewhat 'out of fashion', geographic pay differentiation deserves consideration as well. A living wage in Polokwane, for example, where the average free-standing house price is around R1.3 million, differs substantially from Sandton (with a mean of R3.3 million) and Tembisa (average of R700,000).
PwC advocates for businesses to consider the triple bottom line—people, planet and profit— that drives impact at the community level
South Africa’s real GDP per capita declined by a cumulative 4.2% over the past 10 years. A drop in this metric is generally associated with declining standards of living and economic instability. South Africans feel the impact of economic instability at the community level where associated issues like poverty, inequality and unemployment result in many social challenges like crime and declining societal trust.
These conditions also adversely affect interpersonal trust within communities. Social trust is a deep determinant of economic progress: it fosters cooperation, reduces transaction costs and encourages investment and innovation. When individuals trust each other, they engage in mutually beneficial exchanges, leading to economic growth and development. However, according to the World Value Survey, only one in four South Africans believe that most people in the country can be trusted.
Often, companies are focussed on their main bottom line (profit) when making business decisions. Instead, we advocate for businesses to rather consider the triple bottom line—people, planet and profit— that drives impact at the community level. Initiatives like supporting access to basic services (healthcare, recycling projects, etc.) can provide for greater community stability (healthier children, less litter, cleaner air, etc.) during times of economic instability.
“Employee wellbeing is a shared responsibility. Employers play an important role in supporting the health of their people across seven dimensions of wellbeing: physical, emotional, intellectual, mental, spiritual, financial and social. These are proven drivers of performance, fulfilment and engagement. When corporate wellbeing practices are combined with individual commitment to healthy behaviours and attitudes, it leads to a positive impact not only on the individual, but on their teams and client relationships.”
It is also essential for South African companies to understand, measure and communicate their overall impact on society as this promotes trust and loyalty among stakeholders, drives sustainable business growth, and contributes to the overall wellbeing of our people. When we consider socio-economic impacts, we look beyond just the jobs created by an employer. Other key considerations include the division (equity) of salaries and wages between low-, medium- and high-income households; payment of municipal and national taxes and the salaries (for doctors, teachers, etc.) that these finance; and the inclusion of local SMMEs in supply chains.
Employers have many options beyond directly funded healthcare benefits and contributions towards medical aid to support the wellbeing of their workers
South Africans are concerned about health risks like chronic illness, the cost of medicine, and mental health conditions, among other medical challenges. In 2025, they faced several key challenges that has (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.
Around 20 million South Africans do not have access to universal health coverage (UHC) due to multiple factors, including physical access and the cost of healthcare. Many of them 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 for employers to support employee wellbeing include supporting physical fitness, providing preventative care, offering mental health services, and running in-house educational programs.
Climate analysts can identify physical climate risks at specific locations and for affected communities in a company’s value chain
Nearly half of surveyed South Africans believe 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.
Climate analysts can identify physical climate risks at a granular level, i.e. at specific locations and for affected communities in a company’s value chain. This kind of location-specific analytical depth is required to understand heat stress at a specific location and for a specific set of employees. In some locations, elevated temperatures can cause heat-related illnesses, while in other areas heat changes could increase the risk of exposure to new vector-borne diseases.
“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. They need to continuously evaluate the skills they need, their approach to retaining talent, and the development of their existing workforce.”
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.
Contact us
Verena Koobair
Head of Communications and Societal Purpose Firm Pillar Lead, PwC South Africa
Tel: +27 (0) 11 797 4873
