Finance Minister Enoch Godongwana delivered the 2026 Budget Speech on Wednesday, outlining how much money SA has to work with, how government plans to use it, and where that money will come from.
But beyond the big words and long numbers, what does it mean overall, for your salary and your petrol tank?
OM Bank, a new digital-first bank built on Old Mutual’s longstanding legacy, knows that the Budget Speech isn’t just a national conversation. It’s a personal one that impacts every South African.
That’s why it cuts through the jargon to explain what it really means for your pocket.
Here are three main things you should know:
1. Big picture: SA has a lot of debt
The government still owes a lot of money — about 75% of the gross domestic product (GDP). GDP is a way of saying: the country’s “income”, or how much the country produces/earns overall.
Because government debt is high, a big chunk of money goes to paying interest on that debt, instead of using it for services.
With this in mind:
- The government will be spending money more carefully and cutting out unnecessary expenses.
- The upkeep of things that matter — roads, electricity and transport — will be a priority.
- It aims to create jobs, support local businesses and help South Africans benefit from local economic activity.
2. Personal income tax and your take-home pay
“Income tax” is the money taken from your salary to fund government services.
What’s happening now:
Good news: there is slightly more take-home pay with tax brackets having been adjusted. This means consumers will no longer be dragged into higher tax brackets purely because of inflation.
Speaking of which, there’s more good news: inflation has slowed to around 3.5%, which means prices aren’t rising as fast as before. That usually makes paying back loans a bit cheaper.
OM Bank encourages you to monitor your take-home pay and deductions closely.
Now’s a good time to focus on small, consistent savings; even modest monthly contributions can build a cushion over time. Tools like the bank’s “Pay Me First” feature make saving automatic and manageable.
3. Fuel levy: petrol prices will increase
The fuel levy is a government charge added into fuel prices. A Road Accident Fund (RAF) levy is also added, which helps pay compensation for victims of road accidents.
What changed:
The fuel levy increased by 9c per litre and the RAF levy increased by 7c per litre. And when fuel goes up, transport and food prices usually follow.
Use this moment to rebalance your budget by:
- Reviewing your transport, food, and “small daily spend” categories.
- Adjusting for potential price changes.
- Using digital budgeting tools to track how your spending shifts.
In times like these, being in control of your money matters more than ever. Simple steps like reviewing your budget, paying down debt faster, and building an emergency fund can make a real difference. The right banking tools ― like the ones OM Bank offers ― can help you stay ahead, not behind.
Join over 300,000 South Africans who’ve already chosen OM Bank. Download the app via the Apple App Store, Google Play Store or Huawei AppGallery.
This article was sponsored by OM Bank.
OM Bank Ltd. is a member of the Corporation for Deposit Insurance, an authorised financial services provider (FSP 54837) and a registered credit provider (NCRCP17317).
