For South Africans who still get a “13th cheque” or early December bonus, the mid-month payday feels like a lifeline after a hard year.
But PayInc’s (formerly BankservAfrica) December data and retailers’ trading updates show that by the time the calendar hits Christmas, most of that money has already been swallowed by essentials, debt and January’s looming bills.
According to PayInc figures, cash orders through its systems reached R87.7 billion in December 2024, with card and cash activity peaking on 2, 13 and 27 December as banks prepared for the festive rush.
The 13 December spike – R6.7 billion in cash orders in a single day – lines up with when many employers pay out bonuses or early salaries.
Financial institutions warn that this money has to stretch unusually far.
One analysis of the “49-day pay gap” notes that a December pay run often has to last workers 42–49 days until the next salary in late January, which is why so much of the 13th cheque goes on survival rather than splurging.
1. Groceries and everyday essentials eat the biggest slice
PayInc’s card data shows that grocery stores and supermarkets are the single biggest December spending category, ahead of fuel and restaurants.
With food inflation still biting and more people at home for the holidays, a large share of the 13th cheque is pulled straight into:
- Restocking fridges and freezers for family visits
- Bulk buys of staples (maize meal, rice, oil, meat) to carry households into January
- Extra treats for Christmas and New Year meals
Retail groups like Shoprite report strong festive-season sales growth – its core supermarket division grew by about 10%in the six months to late December 2024, driven by holiday demand from both budget and upmarket shoppers.
That performance reflects how much of December’s extra income never leaves the food aisle.
2. Alcohol and eating out: the “festive cheer” line item
Once basics are covered, many households channel part of the bonus into alcohol and dining out.
A national retail study found South Africans spent R354 billion on food and liquor in the 12 months to September 2024, with liquor and ambient foods among the fastest-growing segments, driven especially by beer and frozen meat.
PayInc’s category breakdown backs this up: after groceries, fuel and restaurant spend are the next-biggest December card categories, and banks report strong peaks in entertainment and betting spend over the holidays.
For many workers, that portion of the 13th cheque funds year-end braais, nights out and party stock – the visible parts of festive spending even though they’re not the largest line item overall.
3. Travel, fuel and getting home
Transport absorbs another big chunk. Bank and payments data show that fuel purchases at service stations were the second-largest December card spend category, while holiday and travel expenses, though more spread across the year, still climb around the festive season.
For some, the 13th cheque pays for:
- Long-distance taxi or bus fares to rural homes
- Fuel for road trips and family visits
- Tolls, car maintenance and emergency repairs before hitting the N1 or N3
Because transport costs are largely unavoidable – you either go home or stay put – they often outrank “nice-to-have” purchases when households allocate bonus money.
4. Fashion, gadgets and “treat yourself” spending
Even under pressure, South Africans still squeeze fashion and homeware into their December budgets.
Standard Bank’s data shows clothing spend spikes in December, and fashion chains such as Mr Price and TFG have reported strong Christmas-quarter sales growth, helped by Black Friday and festive promotions.
This slice of the 13th cheque typically covers:
- Christmas outfits and “new school year” clothes for kids
- Sneakers, cosmetics and accessories picked up in mall sales
- Small appliances and gadgets bought on promotion
These purchases are highly sensitive to interest rates and credit availability. Retailers say higher rates have already cooled some discretionary spending, meaning households in 2025 are more likely to hunt for deals or down-trade brands rather than abandon fashion purchases entirely.
5. Debt, arrears and catching up before January
Behind the scenes, a large – and growing – portion of the December 13th cheque goes straight into debt repayments and interest.
Bank data shows the share of total spend going to interest payments has risen in recent years, reflecting higher prime rates and more households carrying credit card, store and personal-loan balances.
December bonuses give borrowers a chance to:
- Clear arrears on store accounts and personal loans
- Pay down revolving credit to free up limit for emergencies
- Settle outstanding municipal or service bills before cut-offs
For many families, this is not optional: missing payments in December triggers penalties that make the January squeeze even worse. As a result, the “fun” portion of the 13th cheque is often smaller than the debt-clearance line item.
6. School supplies and the “January is coming” budget
Even while tinsel is still up, banks’ data shows education expenses peak in January, with clear build-up in December as parents start buying uniforms, stationery and registration fees.
The 13th cheque is one of the few ways households can fund this without taking on new debt.
Typical back-to-school spending from the December payout includes:
- Deposits for school or crèche fees
- Uniforms, shoes and sports kit bought during post-Christmas sales
- Stationery packs, textbooks and digital devices for older learners
This is also where the long 42–49-day gap between December and late-January paydays bites hardest: families effectively use bonus money to pre-fund the first month of the new school year.
7. Cash, online shopping and the split between physical and digital
PayInc’s systems show that December remains a heavy cash month even as digital payments grow. Cash orders through the banking system rose about 4% year-on-year to R87.7 billion in December 2024, and surged on 13 December as ATMs and branches were stocked for holiday demand.
At the same time, online spending is exploding: PayInc’s 3D-Secure data recorded a 30% jump in online transaction volumes and a 50% rise in value over the same period, with the busiest categories including mobile networks, betting and gambling sites, online grocery platforms and major retailers.
That means chunks of the 13th cheque are now flowing to data bundles, gaming, streaming and ecommerce carts instead of strictly brick-and-mortar tills.
What it all adds up to
Taken together, the data paints a clear picture of where the typical December 13th cheque really goes in 2025:
- Essentials first – groceries and transport get paid before anything else.
- Festive treats next – alcohol, eating out and fashion grab what’s left of the “fun” budget.
- Debt and January costs in the background – a significant portion is quietly redirected to loans, arrears and school expenses to survive the 49-day gap to the next paycheque.
For households, the implication is sobering: the December bonus is less a windfall than a compressed year-end survival tool. For retailers and banks, it remains the engine behind one of the most important trading periods of the year – and a reminder that how South Africans spend their 13th cheque tells you more about financial pressure than about festive luxury.
