# Info needed



## parisindia (Dec 13, 2014)

Hi,

can someone tell me, what should be the average net take home salary be for a family of 2 to live a decent/luxury life style?

Appreciate your help


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## Johanna (Apr 13, 2009)

parisindia said:


> Hi,
> 
> can someone tell me, what should be the average net take home salary be for a family of 2 to live a decent/luxury life style?
> 
> Appreciate your help


It all depends on what you consider to be a decent/luxury lifestyle!

Where do you live currently, if you live in the USA, you may need a lot more than if you live in Zimbabwe. 

What is your perception of decent/luxury?

To me there is a vast difference between the two concepts.

:confused2::confused2::confused2:


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## 2fargone (Jun 14, 2011)

parisindia said:


> Hi,
> 
> can someone tell me, what should be the average net take home salary be for a family of 2 to live a decent/luxury life style?
> 
> Appreciate your help


This question is asked all the time. It's so hard to say. What might be a decent salary for one person, but not be to another. And the cost of living varies so much in South Africa. So does the salary.

You can do a search on the forum to get an idea of what other people think. But, it also depends if you renting, how many cars you need, etc.


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## parisindia (Dec 13, 2014)

Hi,

Thanks for responding.
So if I asked what is the average cost of living with basic amenities? Any idea how much would that be


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## goodmrng1947 (Aug 25, 2014)

Hi Parisindia,

family of 2 with 2 kids, would need you anything between R16500-R22500


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## parisindia (Dec 13, 2014)

Hi thanks a ton for your response.
So when you say these numbers do they also include house rent ? Or apart from house? I assume this would include utility, groceries, travel etc?

How would you Rate a monthly salary of 50,000 rand?


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## shadeslayer (Feb 17, 2012)

parisindia said:


> Hi thanks a ton for your response.
> So when you say these numbers do they also include house rent ? Or apart from house? I assume this would include utility, groceries, travel etc?
> 
> How would you Rate a monthly salary of 50,000 rand?



Hi, 

A two bedroom apartment / portion rent in a reasonably good neighbourhood will cost between 8~10k ZAR. You should search gumtree classifieds and get a better idea.

SA has a good ranking in price comparison indexes (BigMac index etc), its not as expensive as rest of Africa. A budget of 8~10k ZAR will be enough for frugal people (cook at home, no fancy subscriptions,controlled utilities etc). But as other's mentioned, it all depends on what you consider luxury.

Public transport in Joburg not good; its not _very safe_ for families and doesn't cover all city. So you'll to buy/rent a car. Long term rent for a hatchback will be about 3~4k per month plus same for fuel (depending how much you drive).

Finally, is 50k ZAR after tax? If not, taxman will take about 27% out of this. And the BIGGEST issue right now is that SA's currency is at its worst. And there is no indication of any recovery any time soon. If you negotiated you salary keeping in mind your local currency or USD, then you should know that currency depreciation will significantly affect you if you plan to save this money and send it back home. However if you are in SA for a long time (settle here), then it shouldn't affect you much because you'll be earning and spending in the same currency.


Hope this helps.


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## parisindia (Dec 13, 2014)

Hi,

The info really helps.
So 50k is after tax. How would you rate it?


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## shadeslayer (Feb 17, 2012)

parisindia said:


> Hi,
> 
> The info really helps.
> So 50k is after tax. How would you rate it?


Depends on what industry you are in and what is your experience. 50k is good for someone with 5 year experience in IT/Telco industry.


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## LegalMan (Dec 26, 2012)

parisindia said:


> Hi,
> 
> The info really helps.
> So 50k is after tax. How would you rate it?


Welcome to the top 1% of income earners in South Africa.


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## shadeslayer (Feb 17, 2012)

LegalMan said:


> Welcome to the top 1% of income earners in South Africa.


Whattt? 50k is a good salary but I don't think its in top 1% 

LegalMan sir, could you please take a look at few questions I posted in "Leaving SA" thread? :nod:


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## parisindia (Dec 13, 2014)

Can you paste the link for the thread


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## joe117 (Sep 10, 2012)

Hi

Legal Man may be correct. ZAR50k net salary translates to a gross salary of over 90k per month..Very few people earn such amounts in South Africa.


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## shadeslayer (Feb 17, 2012)

parisindia said:


> Can you paste the link for the thread


Here it is,

http://www.expatforum.com/expats/so...ts-living-south-africa/627241-leaving-sa.html


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## LegalMan (Dec 26, 2012)

shadeslayer said:


> Whattt? 50k is a good salary but I don't think its in top 1%
> 
> LegalMan sir, could you please take a look at few questions I posted in "Leaving SA" thread? :nod:


In a country with the WORST Gini Coefficient in the world (highest inequality) and where the top two richest people own more than the bottom 50% of the entire SA population, trust me, even a GROSS salary of R50K puts you in the top 1% of what the country earns.

I'll bet my house on that.


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## parisindia (Dec 13, 2014)

If i pay 10,000 R monthly from a gross salary of 90,000 can i claim a deduction for tax for this so that the taxable salary is now 80,000. Do you have any idea what are the tax deductions i can claim to reduce my tax


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## parisindia (Dec 13, 2014)

LegalMan said:


> Welcome to the top 1% of income earners in South Africa.


If i pay 10,000 R monthly from a gross salary of 90,000 can i claim a deduction for tax for this so that the taxable salary is now 80,000. Do you have any idea what are the tax deductions i can claim to reduce my tax


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## joe117 (Sep 10, 2012)

Hi

Not so sure what you are asking here.If R90k is your salary, then it will be taxable in full and the normal tax deductions as per the taxman's rules will apply.


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## parisindia (Dec 13, 2014)

for rg. out of a gross salary of 90,000 if i pay 2000 for medic aid and 2000 for retirement plan. the taxable income would be 86000 ( less 4000) and tax would be 84000*40%.
I want to know if i pay for housing rent can i claim a deduction on that? 
In india/AU/US it is done


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## joe117 (Sep 10, 2012)

Hi

You will not be able to claim a deduction on your house rentals.The full ZAR90,000 will be taxed.You will get some tax credits for the medical aid and pension deduction but those will require some detailed calculations depending on the amount,etc.

Also take note there will be a few other tax credits that you will qualify for depending on your personal circumstances. The full 90k will not be subject to a tax rate of 40% though as the tax authority (SARS) has different tax brackets. So some (not much) of your income will be subjected to the low tax rates. For more clarity you can visit the SARS website.


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## LegalMan (Dec 26, 2012)

This is a tax question and I suggest you search on Google for a South African tax accountant to help you. There are many ways to reduce tax in a totally legal manner, which they will know well.


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