First, labour market income is so highly correlated with total household income. Then, labour market earnings are very' unequally distributed amongst those who have such earnings. It is the net impact of these two forces that results in labour market income being the major driver of household income inequality in each y'ear. Although the real mean of household monthly income changed very little (between R5 044 and R5 372) the mean of household monthly income from state transfers grew significantly in real terms. The inequality decompositions suggest that these state transfers make very little contribution to inequality in any year.