Average Managing Director salary in South Africa 2024

average managing director salary

The average managing director salary in South Africa is R60,200.00 per month. Managing Directors play an important role in developing a company’s strategy because they make strategic recommendations and ensure that the company’s goals are met.

Aside from their monthly salary, managing directors receive a yearly bonus. A Managing Director’s annual bonus ranges from R24,000.00 to R497,000.00. Bonuses vary by employer, and some do not offer them at all.

According to Salary Explorer, in 2021, 82% of Managing Directors received a bonus, while 18% did not. Those who received a bonus reported that it ranged between 5% and 9% of their annual salary.

In South Africa, commissions for managing directors are uncommon. However, the salary of Managing Directors grows at an alarming rate. Every 18 months, MDs receive a 13% salary increase. When compared to the national average for all professions of 8% every 19 months, the MD’s salary increase is very high.

As a Managing Director’s salary rises at a rapid pace, it is influenced by a variety of factors. These elements are discussed further below.

Factors that influence the salary of a Managing Director 

Education

The salary of a Managing Director is influenced by one’s level of education. Those with a master’s degree in a specific field who work as managing directors earn the most. Managing Directors with a high school certificate earn the least, with an average monthly salary of R41,300.00.

MDs with a national diploma earn 15% more than MDs with a high school certificate, with an average monthly salary of R47,400.00. Managing Directors with a bachelor’s degree earn 35% more than those with a diploma, with an average monthly salary of R63,800.00.

Managing Directors with a master’s degree earn 26% higher than those with a bachelor’s degree. The salary of a Managing Director significantly increases as their level of education picks up. 

City of Employment 

A Managing Director’s salary is also affected by the city in which they work. Here are some of the best places to work as a managing director in South Africa.

#CityAverage Monthly Salary 
1Johannesburg, Gauteng R77,056.00
2Cape Town, Western Cape R71,929.00
3Johannesburg South, Gauteng R70,239.00

A Managing Director’s level of experience is another influencing factor. We examine the Managing Director’s salary based on their level of experience below.

Salary of Managing Directors based on their level of experience 

Salary of a Managing Director with 0 – 2 years of work experience in 2024 

A Managing Director with 0 to 2 years of experience can expect to earn R33,100.00 per month on average. Managing Directors with 0 years of experience earn the least in this category, with an average monthly salary of R27,900.00.

Managing Directors with 2 years of experience earn the most in this category, with an average monthly salary of R37,400.00.

Salary of a Managing Director with 3 – 5 years of work experience in 2024

A Managing Director with 3 to 5 years of experience can expect to earn R42,500.00 per month on average. The salary is 29% higher than the average salary for a Managing Director with 0 to 2 years of experience.

Managing Directors with 5 years of experience earn the most in this category, with an average salary of R50,900.00 per month. Those with 3 years of experience earn the least in this category, earning R39,200.00 per month.

Salary of a Managing Director with 6 – 10 years of work experience in 2024

A Managing Director with 6 to 10 years of experience earns an average monthly salary of R58,600.00. The salary represents a 38% increase over the average salary of managing directors with 3 to 5 years of experience.

Managing Directors with 10 years of experience earn the most in this category, with an average monthly salary of R67,800.00. Those with 6 years of work experience earn the least in this group, with an average monthly salary of R54,500.00.

Salary of a Managing Director with 11 – 15 years of work experience in 2024 

A Managing Director with 11 to 15 years of experience earns an average monthly salary of R72,600.00. The salary represents a 24% increase over the average salary of managing directors with 6 to 10 years of experience.

MDs with 15 years of experience earn the highest salaries in this category, with an average monthly salary of R75,000.00. Managing Directors with 11 years of experience earn the least, with an average monthly salary of R79,700.00.

Salary of a Managing Director with 16 – 20 years of work experience in 2024

A Managing Director with 16 to 20 years of experience earns an average monthly salary of R77,800.00. The average salary is 7% higher than that of Managing Directors with 11 to 15 years of experience.

Managing Directors with 20+ years of experience earn the highest salaries, with an average monthly salary of R83,000.00. Managing Directors can earn more than R100,000 per year, depending on the company for which they work.

Conclusion 

Managing Directors play an important role in businesses and work in every industry in the country. Managing Directors’ salaries are very high and rise at a faster rate than the average. Working as an MD and having a master’s degree can significantly increase one’s salary.

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