December may be South Africa’s traditional month for 13th cheques, but March brings another wave of bonus payouts, creating income spikes that influence savings, debt repayments, investments, and travel – especially among high-income earners.
Salary data from Standard Bank shows significant lump sum payouts in March, particularly among customers earning over R4 million a year, followed by private banking clients and young professionals. In contrast, lower-income earners typically receive their bonuses in December.
“What stood out even more as we analysed the data was that, partly due to these large payouts, the monthly salaries of our wealthiest clients make up only about half of their total annual income – 51% – indicating their diverse income streams. These clients often use their bonuses to invest in opportunities that further grow their wealth,” explains Shené Mothilal, Solution Owner of the Digital Money Manager at Standard Bank.
Meanwhile, lower-income groups derive an average of 86% of their income from salaries.
How Different Income Groups Spend Their Bonuses
Lower-income groups primarily spend their bonuses on essential expenses like groceries, clothing, and entertainment. Middle-income earners also increase their grocery and clothing spend but allocate more towards transport and debt repayments, possibly prioritising loan settlements and travel costs.
Meanwhile, high-income earners distribute their bonuses more broadly, spending on groceries, entertainment, and travel investments, even though actual holiday spending peaks in December. They also have a notable spike on payments made to insurance companies, possibly investing in long-term savings.
The wealthiest segment – those earning over R4 million annually – primarily use their March bonuses to boost savings and investments, repay strategic debts, and fund travel plans.
“When it comes to spending speed, lower- and middle-income customers tend to deplete their bonuses much quicker. While this is a trend we see in these income groups throughout the year, this does predominantly go towards essential spend like groceries and repaying debt,” adds Mothilal.
Standard Bank’s Head of Money Management and Advisory, Doret Jooste, recognizes that many low-income earners are stretched financially and rely on their bonuses to cover gaps. To help ensure they don’t quickly spend all of their bonus, she recommends consulting with a financial planner before bonus season to find ways to invest and improve their finances.
“Paying off unsecured debt, like clothing accounts and credit cards can help give you a financial boost and free up cash on a monthly basis to start saving. The main thing is to take a moment before spending your bonus and look for opportunities you can take advantage of to get ahead with your finances,” says Jooste.
Below, Jooste shares ways to make the most of your bonus:
- Pay off high-interest debt, such as credit cards or store accounts.
- Build emergency savings to create financial security and avoid accumulating more debt.
- Consider paying school fees upfront, which may allow you to negotiate discounts.
“At Standard Bank, we have financial planners available in branches across the country, ready to assist customers, regardless of their income level,” says Jooste.
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