INSIGHT 2

Financial fragility is a daily reality

Half of workers have absolutely no savings. No buffer against stress, illness or the unexpected.

Living on the edge

For South Africa’s frontline workers, financial survival is often week-to-week. In security, retail, and sanitation – industries where wages hover just above the minimum and overtime is inconsistent – savings are not a safety net, they’re a luxury. Rising transport costs, pricier food and debt repayments squeeze what little is left, often past breaking point.

Rising pressure

In 2024, fewer than half of deskless workers had zero savings. This year, that figure has tipped over the halfway mark. The result? One burst tyre, one sick child, one lost loved one, and the month unravels. That constant vulnerability spills into every shift, draining focus and energy.

  • 50.9% have no savings (vs. 44.3% in 2024)

  • 73.6% have less than R500 saved

  • 14.6% could not cover even one day’s expenses with their savings

  • 71.9% report financial stress (unchanged from 2024) and score 3.5/5 on how stress affects their health

When you’re calculating the taxi fare before your shift ends, it’s hard to stay present. The mental load of survival crowds out the capacity for problem‑solving, service and safety.

A shifting employer mindset

Financial wellbeing was long treated as ‘personal’. More employers now recognise that a financially strained workforce is distracted and less productive. Payroll‑linked savings, earned wage access, low‑fee microloans, and practical money guidance are emerging – but adoption is patchy. Without action, many remain trapped in instability that no motivational poster can fix. Millions are one expense away from crisis. Financial wellbeing belongs alongside health and safety.

CHRO INSIGHT

You can’t focus on the demands of a job when you’re worried about money.

CHRO INSIGHT

You can’t focus on the demands of a job when you’re worried about money.

CFO INSIGHT

Stress-related underperformance is costing you more than you realise.

CFO INSIGHT

Stress-related underperformance is costing you more than you realise.

Take your cue from the top

Industry leaders are at the forefront for a reason. Here’s what they do to support their staff’s financial health.

Short‑term: Voluntary payroll‑linked savings and mechanisms like earned wage access are offered to smooth cash flow and avoid high‑interest traps. These are paired with opt‑in, practical education (transport budgeting, handling unexpected costs).

Long‑term: Financial resilience is treated like safety. It’s measured, discussed in reviews, and built into benefits planning, because a stable workforce is a productive, loyal one.

“With rising costs and limited income, it’s been difficult to keep up with monthly payments and unexpected expenses, which adds a lot of stress.”

– Retail worker, female (25-34)

“With rising costs and limited income, it’s been difficult to keep up with monthly payments and unexpected expenses, which adds a lot of stress.”

– Retail worker, female (25-34)

“With rising costs and limited income, it’s been difficult to keep up with monthly payments and unexpected expenses, which adds a lot of stress.”

– Retail worker, female (25-34)

©2025 Jem HR Ltd – All Rights Reserved

©2025 Jem HR Ltd – All Rights Reserved

©2025 Jem HR Ltd – All Rights Reserved

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