Equity by design: From compliance to competitive edge

South Africa is taking a bold step toward a more transparent and equitable world of work.

Johannesburg, 27 August 2025 – 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. Focused on fairness, transparency and accountability, this new legislation goes beyond compliance—ushering in a transformative shift in how organisations define value, reward talent and build inclusive workplaces.

Why now—and why it matters

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. 

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 

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.

Organisations must now 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 competitive advantage 

Whether you're meeting minimum compliance or crafting a compelling narrative around your reward philosophy, PwC’s tools help translate complexity into clarity—so you can lead with confidence, not react in crisis. 

“We believe that fair pay is the foundation of a high-performing, ethical organisation. These reforms bring us closer to a future where remuneration reflects value created—not value inherited” says Ebrahimi.

What comes next?

Viewed through the right lens, these changes don’t limit opportunity—they unlock it. Businesses that choose to lead this reform stand to gain significantly. The key lies in understanding the true picture of fair pay within your organisation—grounded in facts, supported by analysis and guided by intention.