Nearing Two-Thirds: How Electricity and Transport Are Gobbling Up Low-Income Wages

Essential municipal and transit costs now consume nearly two-thirds of a low-income worker’s earnings, according to the Pietermaritzburg Economic Justice & Dignity (PMBEJD) September 2026 report. 

Electricity and transport account for 64.6% (R3 279.45) of the maximum National Minimum Wage of R5 078.64 for a general worker earning R30.23 per hour across a 21-day month. Transport alone claims R2 016.00, while electricity requires R1 263.45.  

This leaves workers with just R1 799.19 to cover all remaining living expenses, including food. With an average worker's wage supporting a household of 4.1 people, the remaining income yields R449.79 per person per month for sustenance—48% below the National Food Poverty Line of R868. Consequently, families face a 52.7% shortfall (R2 007.92) against the R3 807.11 required for a basic nutritious food basket.  

Compared to earlier months in 2026, the portion of a minimum-wage worker's earnings spent on electricity and transport has risen from 63.0% to 64.6%:  

Key Drivers of the Increase are municipal electricity hikes and taxi fare adjustments. Municipal electricity tariffs increased mid-year (effective 1 July 2026). For instance, PMBEJD tracked a 6.9% increase in prepaid electricity tariffs (raising a standard 350kWh allocation from R1,181.88 to R1,263.45 per month).  

Meanwhile, local taxi fare increases implemented mid-year (e.g., up to 20% fare hikes in regional commuter routes) increased the monthly transport allocation. 

Commenting on the latest index, Cape Chamber CEO John Lawson said government has a responsibility to shield the poor as much as possible from the spiraling costs of essential goods and services: "When services which are public sector responsibilities are poorly managed, leading to higher costs, it is a sad indictment of how government has failed the poor—by concentrating on benefitting a privileged few at the cost of the rest."