iAfrica

Be Smart About South Africa

South Africans Will Soon Know How Much Everyone Gets Paid in a Firm

Plans are afoot to make amendments to South Africa’s Companies Act that would require companies to report on wage differentials. This is the gap between executive pay and the lowest paid workers in the company. The announcement was made by South Africa’s Minister of Trade and Industry Ebrahim Patel. This is a significant development. The proposed change would go some way to address the challenge of inequality in South Africa as well as better regulate excessive executive pay. This is because transparency about wage differentials will mean companies cannot continue to ignore the inequalities in earnings in South Africa. Transparency will also enable social actors to question inequality in companies and to change it. On top of this, at least in theory, the massive inequalities between executive pay and the wages of workers would put some pressure on the highest earners to curb their excessive pay.

SOURCE: THE CONVERSATION

Share with your network!