In this paper, we evaluate how government regulations and the Covid-19 pandemic between 2020–2021 filtered locally and impacted household income distribution. We do this by investigating how the events of the two years affected the labour market and income inequality in South Africa. We use total personal income (net of taxes and transfers) to create annual household-level measures of income inequality. Our measures of inequality are Gini coefficient, ratio of income of the 90th to 20th percentile, income share held by the top 10th decile, log real income of 90th percentile, and log real income of 20th percentile.