Author: Nicky Hardwick
South Africa’s proposed Fair Pay Bill, officially an amendment to the Employment Equity Act, signals a renewed push toward pay transparency, fairness, and equity in the workplace.
At its core, the bill introduces several critical obligations for employers:
- No more asking about past salaries during recruitment, unless an offer is made and the candidate requests it.
- Salary ranges must be disclosed when advertising roles or making appointments.
- Employees will have the right to compare and discuss pay freely.
But here is the important thing: these proposed changes are not entirely new. They build upon long-standing principles embedded in employment law.
A quick legal background
The concept of “equal pay for work of equal value” was already introduced in the 2013 amendments to the EEA, and formalised through several measures:
- 1 June 2015: The Minister of Labour published the Code of Good Practice on Equal Pay / Remuneration for Work of Equal Value under the EEA. This Code provides practical guidance to employers on how to implement fair remuneration practices and eliminate discrimination in pay structures. It applies to all employers and employees covered by the EEA, regardless of size or sector.
- EEA4 reporting: Employers have been required to compare remuneration within occupational levels for years, explaining any unjustifiable differences in pay.
Salary grading: Your first line of defence (and strategy)
Some employers mistakenly believe they need an externally “certified” grading system. This is not true.
The law doesn’t require uniform pay across different companies, it requires fair and consistent pay structures within your own organisation.
So, you don’t have to match the salaries of other companies, but you do need to ensure equal pay for work of equal value internally. You will also need to show that any differences are based on valid, non-discriminatory reasons (such as qualifications, experience, performance, or scarcity of skills).
What is salary grading?
Salary grading, or pay banding, is a structured approach to assigning pay levels based on:
- Job responsibility and complexity
- Skills and qualifications required
- Relative value of roles in the organisation
Each “grade” has a defined minimum, midpoint, and maximum salary, and jobs are grouped accordingly. This creates a transparent system that supports fairness, retention, and budgeting.
In a nutshell, plan, don’t panic. At HRTorQue, we can support your organisation to:
- Benchmark roles against current market data
- Develop fair and transparent grading structures
- Audit internal pay differences for EEA4 and compliance
- Implement practical, tailored salary bands for growth and transparency
Let us help you build a resilient, compliant, and strategic pay framework before the law compels you to. Contact us at [email protected] for a consultation or quotation.