Becoming a Chartered Accountant (CA) in South Africa is a rewarding journey, but it’s important to know the financial realities that come with it. Xiren, a qualified CA who worked in both corporate and independent spaces, shares her real-life experiences, including the salary numbers, deductions, and financial lessons every aspiring CA needs to know.
Here’s everything you need to prepare for your financial journey as a CA.
What You’ll Earn as a New Chartered Accountant
Gross Starting Salary:
As a trainee CA during her articles, Xiren earned a gross salary of about R20,000 per month. However, as a qualified CA, her gross salary increased significantly to approximately R50,000 per month after a few years in the industry.
Net Salary (Take-Home Pay):
It’s essential to focus on the net salary, which is what you’ll actually take home after deductions like tax, medical aid, and pension contributions.
- During her training, Xiren’s net salary was around R11,700 per month.
- By the time she was fully qualified and had gained a few years of experience, her net salary grew to around R50,000 per month.
Key Advice:
Xiren warns that deductions can cut deeply into your expected income. “My medical aid was very expensive, taxes were high, and there were pension contributions. Always ask for a dummy payslip before accepting a job offer to avoid surprises.”
What Influences Your Starting Salary?
Your starting salary depends on several factors:
- The Company You Work For
Salaries vary significantly based on the size and industry of the company:- Small Accounting Firms: Often pay lower starting salaries, sometimes less than R15,000 gross per month.
- Banks and Corporates: Large organisations, especially in industries like oil, gas, or finance, pay higher salaries. Xiren worked for a multinational oil and gas company during her articles, which offered competitive pay.
- Location
Salaries in cities like Johannesburg and Cape Town are generally higher due to the cost of living and concentration of large firms. - Performance Milestones
Your salary will increase as you achieve professional milestones, like passing board exams.- After passing her first board exam, Xiren’s salary increased significantly.
- Another raise came after completing two years of experience as a CA(SA).
Breaking Down the Numbers: Budgeting Your Salary
When you start working, here’s how your gross salary might look after deductions:
- Gross Salary: R20,000
- Deductions:
- Tax: R3,500
- Medical Aid: R2,000–R3,000
- Pension: R1,500–R2,000
Net Salary: Approximately R11,000 to R12,000
This take-home amount can feel tight, especially when you account for living costs like:
- Rent: R5,000–R7,000 for basic accommodation in cities.
- Transportation: If you buy a car like Xiren’s Polo, expect payments of about R3,000–R4,000 per month.
- Insurance: R1,000–R2,000 for car insurance.
“After paying for my rent and car, I was just breaking even. There was barely enough left for clothes or entertainment,” Xiren recalls.
How Does the Salary Grow Over Time?
While the starting salary may feel limited, the good news is that it grows quickly as you gain experience and pass exams.
- First Year: Around R20,000 gross, with R11,000–R12,000 net take-home pay.
- After First Board Exam: Salary increases by 15%–20%.
- After Qualifying as a CA(SA):
- Gross Salary: R40,000–R50,000 per month.
- Net Salary: R30,000–R35,000 per month.
- 2–3 Years Post-Qualification:
- Gross Salary: R60,000–R80,000 per month, depending on your role and company.
Advice for Growth:
Stay with your employer during the qualification process to maximise salary increases tied to milestones like passing board exams and gaining years of experience.
What Lifestyle Can You Afford?
As a new CA, you may not immediately enjoy the lifestyle you imagined.
- Housing: Basic apartments in urban areas can cost R5,000–R7,000 per month. For a family home, expect upwards of R15,000.
- Cars: A mid-range car like a VW Polo will cost R3,000–R4,000 per month in instalments. Premium German cars can cost over R10,000 per month.
- Children’s Education: Private school fees can exceed R10,000 per child per month.
“Even when I was earning R50,000 net, I realised it wasn’t enough to afford all the finer things in life,” Xiren admits. “To live comfortably, you need side hustles or a partner who also earns well.”
Other Benefits of Being a CA
Despite the financial challenges, becoming a CA offers numerous advantages:
- High Starting Point:
“CAs start with salaries higher than most graduates,” says Xiren. This provides a strong foundation for your career. - Transferable Skills:
Understanding taxes, financial statements, and corporate finances is invaluable for starting your own business or pursuing other ventures. - Growth Opportunities:
With time, experience, and further qualifications, you can move into leadership roles like CFO, earning six-figure salaries.
Final Advice for Aspiring CAs
Xiren’s advice to future CAs is clear:
- Plan for Deductions: “Ask for a dummy payslip before accepting an offer. It’ll save you from financial shocks.”
- Choose Wisely: Work for a reputable company or industry with good growth potential.
- Think Long-Term: Becoming a CA is a strong starting point, but explore additional income opportunities.
“Being a CA is a great career with excellent earning potential,” Xiren concludes. “But to achieve the lifestyle you want, you may need to go beyond the title. Work smart, plan well, and take advantage of the opportunities the qualification offers.”
Would you like detailed guidance on passing board exams or managing your early career finances?