You’ve undoubtedly heard of a SAICA trainee if you’re thinking in becoming a chartered accountant in South Africa. The professional organization in charge of educating and certifying chartered accountants in South Africa is called SAICA (South African Institute of Chartered Accountants). However, one of the most important questions you may have before beginning the demanding training is: How much do SAICA trainees make in South Africa?
To give you a better idea of what to anticipate in terms of pay when you start your journey to become a CA(SA), we will dissect the wage expectations for SAICA trainees in this blog post.
What is a SAICA Trainee?
A SAICA trainee is an individual who is in the process of completing their articles (the practical training phase required to become a CA(SA)) under the supervision of a SAICA-accredited training office. This phase typically lasts for three years and involves a combination of on-the-job training and theoretical learning.
How Much Do SAICA Trainees Earn?
The salary of a SAICA trainee in South Africa varies based on several factors such as the size and location of the firm, the level of the trainee (whether they are in their first, second, or third year), and the overall economic climate. However, we can provide an average estimate to give you a rough idea.
1. First-Year SAICA Trainee Salary
As a first-year trainee, you can expect to earn between R7,000 and R10,000 per month. This is the starting phase of your career, and the salary is relatively lower compared to later years. However, it is important to keep in mind that this amount can vary based on the firm’s reputation and location.
2. Second-Year SAICA Trainee Salary
In the second year, as you gain more experience and responsibility, your salary will increase. On average, second-year trainees earn between R9,000 and R14,000 per month. By this stage, you are expected to have a stronger understanding of the work and contribute more to the firm’s operations.
3. Third-Year SAICA Trainee Salary
By your third year, you are considered a more experienced trainee. As such, third-year SAICA trainees can earn between R12,000 and R18,000 per month, depending on the firm. At this stage, you will likely be managing more complex tasks and possibly even leading teams, which justifies the higher salary.
Factors Influencing SAICA Trainee Salaries
While the salary ranges mentioned above give a good overview, there are several factors that can impact what a specific trainee will earn:
1. Size of the Firm
Larger, international firms such as Deloitte, PwC, EY, and KPMG tend to offer higher salaries than smaller, local accounting firms. If you are training at one of these large firms, you can expect a salary at the upper end of the scale or even slightly higher.
2. Location
Salaries in metropolitan areas like Johannesburg, Cape Town, and Durban are generally higher due to the higher cost of living. If you’re training in a smaller town or rural area, your salary may be lower, but the cost of living will also be less.
3. Performance and Qualifications
If you enter your training contract with additional qualifications or have exceptional performance, you may be able to negotiate a higher salary. Additionally, trainees who consistently outperform expectations may be rewarded with raises or bonuses.
4. Economic Conditions
The state of the economy can also impact trainee salaries. During times of economic growth, accounting firms are likely to offer higher salaries to attract top talent. On the other hand, during economic downturns, firms may offer lower starting salaries to manage their costs.
Additional Benefits for SAICA Trainees
While the salary is an important consideration, it’s worth noting that many SAICA trainees also receive additional benefits, which can add significant value to their overall compensation package. These benefits may include:
- Study leave to prepare for SAICA exams
- Health insurance or medical aid contributions
- Performance bonuses or incentives for achieving targets
- Training and development opportunities
- Transport allowances or reimbursement for travel expenses
How Does This Compare to Other Professions?
SAICA trainees earn a competitive salary compared to other entry-level positions in South Africa. For example, a graduate entering other fields may earn between R5,000 and R8,000 per month as a starting salary, making the initial salary of a SAICA trainee quite attractive. Additionally, the salary growth in the later years of a training contract is faster than in many other industries.