Fair Pay Bill: ‘Businesses that lead this reform stand to gain significantly’
The introduction of the Fair Pay Bill in June 2025, alongside recent amendments to the Companies Act, marks a pivotal moment in reshaping corporate culture in South Africa. That is according to PwC partners Bernice Wessels, Leila Ebrahimi and Makhosazana Mabaso.
South Africa has long recognised the principle of “equal pay for work of equal value” through the Employment Equity Act. However, enforcement has been inconsistent, and transparency limited. This began to change in 2019 with updates to the EEA4 form, which required employers to report internal wage gaps and demonstrate efforts to close them.
“The Fair Pay Bill builds on this foundation by proposing practical, enforceable measures. It prohibits employers from asking about a candidate’s salary history, mandates the disclosure of salary ranges in job advertisements and protects employees’ rights to discuss their pay openly” says Leila Ebrahimi, a partner in the People & Organisation Reward practice at PwC.
In parallel, the Companies Act amendments now require public and state-owned companies to disclose detailed wage gap data – including the total remuneration of the highest and lowest paid employees, the average and median pay across an organisation, and the gap between the top and bottom 5%.
“Together, these changes move fair pay from principle to practice – bringing clarity, accountability and momentum to a long-standing commitment” says Ebrahimi.
From reporting to real value
Makhosazana Mabaso, also a partner in the People & Organisation Reward practice, emphasizes the importance of pay fairness. “This is a core principle in these reforms. Where remuneration decisions were once made behind closed doors, transparency now invites shared accountability. Employees are empowered to assess fairness, and employers must justify pay decisions with data and intention.”
Supporters argue that increased transparency builds trust, attracts diverse talent and reduces bias. Critics caution that it may expose competitive vulnerabilities or create internal tension. “Regardless of perspective, one thing is clear: the new reality demands discipline,” says Mabaso.
She recommends organisations to take deliberate steps to align their pay practices with business strategy. This includes approving a fair and responsible pay policy that clearly outlines the principles guiding remuneration decisions. It also involves consistently measuring and tracking internal wage gaps using recognised methodologies, and understanding and addressing any outliers to ensure meaningful progress toward equity.
From compliance to real advantage
The key objective for businesses is to ensure they become compliant with the new regulation. Those that aim to lead the playing field, and unlock more opportunities, should consider going a mile further, says Bernice Wessels, a partner in the People Analytics and AI practice.
“We believe that fair pay is the foundation of a high-performing, ethical organization. Organisations that go beyond box-ticking and compliance will reap the benefits. Businesses that choose to lead this reform stand to gain significantly.”
“The key lies in understanding the true picture of fair pay within your organization – grounded in facts, supported by analysis and guided by intention.”
