Capitec or ABSA: Who Pays Higher Salaries in South Africa?

Salary comparisons play a vital role in South Africa’s banking sector, where employees often weigh compensation alongside career growth opportunities. With rising living costs and increasing competition for talent, understanding which banks pay more has become essential for job seekers and professionals planning their career paths. Beyond the numbers, salary insights reveal how banks value skills, reward experience, and respond to changing market conditions.

Capitec Bank and Absa are two of the country’s most prominent financial institutions, each employing thousands of South Africans across diverse roles. Capitec, known for its rapid growth and customer-focused model, has built a reputation as a challenger bank. Absa, on the other hand, is one of the country’s oldest and largest banking groups, offering extensive corporate and retail banking services.

This article explores how the two banks compare in terms of salaries, benefits, and growth opportunities. By providing clear salary benchmarks by role, experience, and skills, readers can make informed career decisions within South Africa’s banking sector.

Overview of Capitec and ABSA

Capitec Bank – Company Snapshot

Capitec was founded in 2001 and quickly established itself as a disruptive force in South African banking. Unlike traditional banks, Capitec focused on affordable, simplified banking for the everyday customer. The bank has grown to employ more than 14,000 people across South Africa, with a strong presence in retail banking.

In terms of compensation, Capitec has historically positioned itself as competitive but slightly below traditional giants like Absa and Standard Bank. However, in recent years the bank has increased salaries in specialist fields such as IT, compliance, and data analytics to attract top talent. A large portion of Capitec’s staff are entry-level, which lowers the overall average salary, but mid- to senior-level professionals often see strong growth potential.

Absa Bank – Company Snapshot

Absa has roots dating back over a century and stands as one of South Africa’s “big four” banks. With more than 30,000 employees, it operates across personal banking, corporate banking, wealth management, and investment services.

Absa’s compensation strategy is built on market competitiveness, often setting benchmarks above the national industry average. In 2025, the bank announced an increase in its minimum salary to R250,000 annually (over R20,000 per month), ensuring fairer pay across entry-level roles. Absa also provides comprehensive benefits, career growth opportunities, and higher pay for technology and management positions.

Overall, Absa’s larger size and broader operations mean its salary ranges are wider and often higher than those at Capitec, especially in senior and specialised positions.

Average Employee Salaries

Capitec Average Salaries

From 2023 to 2025, Capitec salaries have shown steady growth. The average annual salary sits at around R368,837, with ranges between R137,937 and R821,229 depending on role and experience.

• 2023: Average R340,000 across staff.
• 2024: Salary growth of 6–7%, particularly in technology roles.
• 2025: Average stabilised at R368,837, with top earners crossing R1 million annually.

Departmental Pay Ranges:

• Customer-facing staff (Tellers, Service Consultants): R140,000 – R260,000.
• Business Analysts and IT roles: R450,000 – R850,000.
• Senior Managers: R700,000 – R1,200,000+.

Notably, about 62% of Capitec employees earn between R250,000 and R500,000 annually, while around 10% earn more than R1 million, usually in senior or specialised roles.

Absa Average Salaries

Absa employees earn an average of R500,576 per year, with ranges from R160,261 to R998,177. The bank has consistently paid higher averages than Capitec, with salaries adjusted upwards in 2025 to address market inflation and retain top talent.

• 2023: Average salaries around R470,000.
• 2024: Increment of 5–6%, bringing averages closer to R490,000.
• 2025: Average of R500,576, with minimum salaries raised to R250,000 annually.

Departmental Pay Ranges:

• Customer-facing staff (Tellers, Service Consultants): R200,000 – R300,000.
• Relationship Managers and Account Officers: R450,000 – R750,000.
• Technology and specialised staff (e.g., Software Architects): R800,000 – R1,200,000+.
• Senior Executives: Often exceed R2 million annually.

Key Observations

• Absa pays a higher overall average compared to Capitec.
• Capitec’s salary growth is most visible in IT and analytics, while Absa maintains higher entry-level and management pay.
• Absa’s 2025 salary floor of R250,000 reflects its stronger commitment to fair pay across all roles.

Salary by Job Role

Bank Tellers / Customer Service Representatives

• Capitec: R140,000 – R260,000 annually.
• Absa: R200,000 – R300,000 annually.
  Absa pays significantly more for frontline roles.

Account Managers / Relationship Managers

• Capitec: R350,000 – R550,000.
• Absa: R450,000 – R750,000.
  Absa again leads, particularly in corporate and wealth divisions.

IT and Technology Staff

• Capitec: R450,000 – R850,000.
• Absa: R800,000 – R1,200,000+.
  Absa offers stronger packages in specialised technology roles.

Graduate and Internship Programmes

• Capitec: Stipends of R120,000 – R180,000 annually.
• Absa: Graduate salaries of R200,000 – R280,000.
  Absa invests more in attracting top graduates.

Senior Management and Executives

• Capitec: R700,000 – R1,500,000+.
• Absa: R1.5 million – R3 million+.
  Executives at Absa earn considerably higher salaries.

Salary by Skills and Experience

Experience strongly impacts pay.

• Entry-Level Roles: Capitec (R140,000 – R250,000), Absa (R200,000 – R280,000).
• Mid-Level Roles: Capitec (R300,000 – R600,000), Absa (R450,000 – R750,000).
• Senior Roles: Capitec (R800,000 – R1.2 million), Absa (R1 million – R2.5 million).

Skills That Boost Salaries:

• IT and Digital Transformation: High demand at both banks.
• Compliance and Risk Management: Key in regulatory environments.
• Data Analytics: Increasingly valuable in customer insights and fraud detection.
• Leadership/Management: Premiums for overseeing large teams.

Certifications such as CFA, CIMA, or advanced IT qualifications significantly raise earning potential at both institutions.

CEO and Pay Gap Comparison

At the executive level, both banks pay competitive salaries aligned with global financial standards.

• Capitec CEO Compensation: Estimated between R25 million – R35 million annually (including bonuses).
• Absa CEO Compensation: Estimated R30 million – R40 million annually.

The CEO-to-average employee salary ratio is higher at Capitec, reflecting a steeper pay gap due to a large base of lower-paid employees. At Absa, while the CEO salary is slightly higher, the broader workforce earns more, narrowing the gap somewhat.

This disparity raises ongoing debates about fairness, employee morale, and the balance between executive pay and workforce welfare.

Benefits, Bonuses, and Perks

Both banks provide a wide range of benefits:

• Medical aid contributions.
• Retirement and pension funds.
• Paid annual leave and study leave.
• Staff banking discounts.

Absa is seen as stronger on performance bonuses, often rewarding top performers with additional incentives. Capitec, however, offers quicker career progression for ambitious staff, particularly in growing departments like IT and digital banking.

Work-life balance is competitive at both institutions, though Absa’s size allows for more structured career pathways and international opportunities.

Factors Influencing Salaries

Several factors shape salaries across both banks:

1. Location: Urban centres such as Johannesburg and Cape Town offer higher pay than smaller towns.
2. Bank Size and Revenue: Absa’s larger market share allows for higher averages.
3. Qualifications: Employees with specialised certifications or advanced degrees earn more.
4. Economic Trends: Inflation and market competition in 2025 pushed banks to increase salaries.

FAQs

Which bank pays more on average?
Absa pays higher average salaries compared to Capitec.

Do Capitec employees still earn well?
Yes. Capitec salaries are competitive, especially in IT and management roles.

Is Absa better for graduates?
Yes. Absa’s graduate salaries and structured programmes are stronger.

Where do Capitec employees earn the most?
Specialised IT, business analysis, and senior management roles.

What is the minimum salary at Absa in 2025?
R250,000 annually (over R20,000 monthly).

Check also: Salary Trends in South Africa: Which Jobs Pay the Most in 2025?

Capitec and Absa are two of South Africa’s leading banks, both offering strong compensation packages. On average, Absa pays higher salaries (R500,576) than Capitec (R368,837), particularly in entry-level, management, and technology roles. Capitec remains competitive, especially in areas of rapid growth like IT, but its averages are held down by a large entry-level workforce.

For job seekers, Absa offers higher pay, structured career paths, and stronger graduate opportunities, while Capitec provides fast progression in specialised fields. Ultimately, the choice depends on career goals, role type, and preferred growth opportunities.

If you’re considering a career in banking, weigh not only salary but also long-term growth, skills development, and workplace culture. Both Capitec and Absa remain strong employers in South Africa’s financial sector.