The National Treasury has released a series of new reports for its Cities Support Program (CSP), detailing taxpayer salaries in South Africa’s major metros – including the country’s economic centers in the greater Johannesburg area.
The reports are based on spatial data extracted from anonymized administrative tax data, documenting employment and business statistics at the sub-municipal level.
The data used for this specific analysis was mainly constructed from the IRP5 and IT3 (a) tax forms.
While the data provides a bird’s-eye view of income distributions in South Africa‘s major metros – and maps the areas where they are concentrated – the Treasury has warned it is not telling the whole story.
Because it deals with formal tax data submissions, it only reflects South Africa’s formal employment sector, missing the nuances and distributions in the informal sector.
The data is also prone to administrative and human error – especially when companies classify all employees as working from head office. In such cases, there is a high concentration of salary data in one place, where the reality can be a workforce dispersed across multiple industries.
Despite these drawbacks, it is the most comprehensive and comprehensive picture we have today for mapping the formal distribution of income in major metros.
Treasury reports cover individual subways, but in Gauteng, three major subways – Johannesburg, Ekurhuleni and Tshwane – are close to each other.
This area of ââthe âgreat Joburgâ is in the process of becoming a âmegalopolisâ, anchored as the economic capital of the country.
And despite their proximity, each metro has its own distribution model and income trend – Ekurhuleni, in particular, exhibiting a surprisingly high concentration of wealth.
About a quarter (25%) of jobs within Tshwane are jobs paying between R3,200 and R6,400 per month in the 2017 tax year, which is also the largest salary range for all employees. other South African subways. 23% of jobs in the city of Johannesburg fall within this range.
Tshwane’s distribution is slightly skewed on the right, particularly above R12,800, indicating a slightly higher percentage of job openings in the higher salary brackets.
This is to be expected given that there are headquarters in Tshwane, as well as most national government departments, diplomatic missions and other government-related businesses, Treasury said.
Ekandustria has been identified as the area with the highest median income. This is closely followed by parts of Mabopane, Akasia and Roodeplaat.
There is a mid-level median income concentration throughout Centurion, while the lower median income areas are located around Mamelodi, Hammanskraal, and Ekangala.
Joburg’s distribution goes even further in the category of Rand 51,200 per month and above. Joburg has the highest proportion of employees in all of the highest salary brackets.
âThis probably means that Joburg is the economic hub of South Africa with a high number of head offices – where employees would be paid a lot more – located in Joburg,â Treasury said.
The corridor connecting Joburg CBD to Rosebank and Sandton has the highest median income.
âSunninghill is also a noted concentration, however, this is probably biased due to the large company appearing to have classified all employees nationally at a head office there,â Treasury said.
Median incomes are generally higher in north Johannesburg, with particular reference to Midrand, parts of Modderfontein, Witkoppen / Bryanston and surrounding areas, as well as Florida.
Median incomes are significantly lower in parts of Soweto, Orange Farm, around Sydenham, and large parts of Roodepoort.
The real outlier here, however, is Ekurhuleni, where a quarter of metro jobs pay between R 6,400 and R 12,800 per month (allowing for inflation). This is a higher proportion than any other major metro.
âThe distribution is also skewed to the right, suggesting a higher concentration of jobs with salaries above R12,800, up to the R25.600-R51.200 band, where Joburg has the highest percentage of employees, âTreasury said.
âThis may be attributable to the types of industries that exist within Ekurhuleni and the wages associated with this type of work.â
The report identifies the airport and parts of Kempton Park CBD as having the highest median income. Halfway through, parts of Germiston CBD and Wadeville all have relatively high median income levels, however, the rest of the Metro has relatively constant median income throughout, Treasury said.
The three metros have very different wealth distribution models.
In Joburg, most of the better paying jobs are concentrated in the ânorthern suburbsâ. Job concentrations below R3,200 per month have a generally low distribution throughout the municipality, however, there are areas where the percentages are slightly higher at Orange Farm, in parts of Soweto and Diepsloot, said Treasury.
âAs it goes below R6,400, there are significantly higher concentrations of these employees in the greater Roodepoort and Linskfield area.
This is moving south from Joburg, Ennerdale, Modderfontein and parts of Midrand as wages rise below R12,800, with a clear lack of focus along the Johannesburg CBD to Sandton corridor.
âThere is a general distribution of jobs between R12,800 and R25,600 per month. We then start to see concentrations forming along the corridor between Joburg CBD and Sandton, with a particularly high level of Sunninghill – likely linked to a large company that classified all employees nationwide at Sunninghill headquarters.
Monthly salary breakdown for Joburg
In Ekurhuleni, concentrations of employment opportunities below R 6,400 are typically located in Meyersdal and other parts of Alberton, Tembisa, an area stretching from Duduza / Tsakane to Kwa Thema, Bapsfontein and Bonaero Park, have noted the researchers.
âAs the salary range increases, there is a general increase in distribution all over Ekurhuleni, however, there are still focal points in Daveyton, Tembisa / Northern Kempton Park, Benoni CBD, Nigel and Bapsfontein.
“These general increases across Ekurhuleni become less pronounced between R12,800 and R25,600 per month.”
As the salary range increases above R51,200 per month, these opportunities begin to focus specifically on Midstream and a triangular area stretching from Bedfordview to Jet Park / Isando and all the way to Kempton Park. CBD, as well as Wadeville and Springs – although at a much lower level of significant concentration.
Monthly salary breakdown Ekurhuleni
Treasury said job concentrations below R 6,400 in Tshwane are typically located in parts of Pretoria North, Ekangala and some very localized places around the CBD of Pretoria and Mamelodi.
âAs we move up through the salary ranks these opportunities are starting to focus on Rosslyn / Ga-Rankuwa, Mabopane, Bronkhorstspruit and to some extent Hammanskraal – certain areas associated with industrial activity.
âAs the salary ranges increase above R25,600 per month, there is a general decrease in the percentage concentrations of employees at Tshwane.â
Monthly salary breakdown Tshwane
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