Despite some positivity in the recent budget speech, many South African employees face multi-layered financial pressure - from rising fuel and electricity costs to general living expenses - creating stress levels that follow them to the workplace.
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FreepikFinancial pressures across all income levels
Lindiwe Sebesho, Master Reward Specialist and Executive Committee Member at the South African Reward Association (Sara) notes that financial pressure is no longer limited to lower-income households. Banking data shows that many customers across all income levels are either in overdraft or close to empty by payday. Even higher-income earners are borrowing to sustain themselves and support family members.
Many households struggle with debt repayments that consume large portions of take-home pay, rising grocery costs, high interest on bonds and vehicle finance, and escalating utility bills. Income insecurity caused by unemployment, slow wage growth, and organisational restructuring adds to the stress.
“Financial stress is not just a personal issue; it’s a business risk,” says Sebesho. “When employees are distracted by financial worries, their focus, engagement, and performance at work are affected. Organisations must recognise that supporting employees through these pressures is essential for sustaining productivity and retention.”
Lucinda Hinxman 18 Dec 2025 The rising cost of living
In March 2026, South Africans were hit with another fuel price increase driven by geopolitical tensions in the Middle East. From 1 April, higher fuel levies will push up the cost of transport and goods. Adding to the pressure, Eskom tariffs are set to rise nearly 9%, with municipal electricity costs following in July. Food prices, closely tied to transport and production costs, are also expected to increase, further stretching household budgets.
“For the employee who drives 40km to work each day, these are not abstract realities, they are the difference between making it to work or not,” Sebesho adds.
Signs of financial stress at work
Financial stress shows up in ways untrained managers often misread. Employees may call in sick because they cannot afford transport, appear distracted during meetings while calculating which debit order to delay, or experience declining performance after sleepless nights spent managing creditors and family demands. Organisations may notice more garnishee orders, repeated salary advance requests, increased absenteeism, disengagement, and higher staff turnover.
Stress-related illness such as anxiety, depression, and substance use is also rising. “This is the human cost of sustained financial pressure without support,” Sebesho warns.
Lushan Sundram 3 Nov 2025 Practical steps employers can take
She adds that employers can support financially stressed employees while protecting productivity and organisational performance by committing to fair and equitable pay.
This can be achieved by taking action such as conducting regular, transparent salary benchmarking to ensure pay levels are in line with industry standards, systematically reviewing salaries and benefits to address potential gaps, and cost effectively correcting historic disparities that may exist for similar roles or across demographic groups.
Additionally, ensuring remuneration is competitive for the work performed not only helps attract and retain talent but also demonstrates the organisation’s commitment to fairness and inclusivity. Open communication about pay structures and clear criteria for progression further reinforce trust and equity within the workplace.
“Benchmarking salaries against actual cost of living and local skills demand ensures pay is meaningful, not just aligned with national averages or inflation.”
Further to this, financial education is essential. Budgeting workshops, debt management guidance, and retirement planning sessions delivered in plain language can help employees better understand and manage their money.
Employers can also look at implementing earned wage access, a workplace benefit that allows employees to access a portion of the wages they have already earned before the regular payday. This provides a practical way to cover urgent expenses, reduces absenteeism, eases the pressure of ad hoc salary advance requests, and helps employees avoid turning to high interest credit to meet immediate needs.
In addition, confidential financial support through employee assistance programmes that include counselling ensures employees have a safe space to seek help before problems escalate. Flexible work arrangements, such as remote days or adjusted start times, can help employees manage transport and living costs. Training managers to recognise signs of financial stress and connect employees with resources ensures no one falls through the cracks.
“Supporting employees through financial stress is operationally prudent,” concludes Sebesho. “Turnover, lost productivity, and administrative risk from unmanaged garnishee orders carry a high cost. Organisations that act now will protect their bottom line and strengthen their reputation as an employer of choice.”
