Point of view: why the Fair Pay Bill could transform recruitment practices in South Africa
Have you ever been asked to submit your payslip by a prospective employer, before you've even sat down for the interview? For many South Africans, it's a routine (and often frustrating) part of the job search. But that could soon change.
The recently tabled Fair Pay Bill aims to put an end to this outdated practice and usher in a more equitable era of recruitment. If passed, it would prohibit employers from requesting your current or previous salary history and instead require them to be upfront about what they're willing to pay. In short, transparency becomes the rule, not the exception.
According to Norma Mazibuko, partner, and Amandla Makhongwana, senior associate at Bowmans South Africa: 'This is a game-changer for both employers and job seekers and, if passed, is set to reshape recruitment, pay practices, and workplace culture across the country.' That statement isn't just hopeful, it's a challenge to long-standing hiring norms.
Mazibuko and Makhongwana say South Africa isn't alone in rethinking how pay is structured. The European Union's Pay Transparency Directive is set for roll-out by June 2026, while several US states have already banned questions about salary history. The trend is clear: the world is moving towards fairer pay, and we'd be wise not to be left behind.
What's powerful about the Fair Pay Bill is its emphasis on the root causes of inequality. Historically, linking new salaries to previous ones has trapped many, especially women, the youth, and people from marginalised communities, in a cycle of underpayment. Start low, stay low. If each new offer is based on an already disadvantaged benchmark, how do you ever break the cycle?
And yet, in many HR departments across the country, this remains standard practice.
Some would argue that knowing a candidate's pay history helps assess market value or avoid overspending. Yet this line of thinking contradicts the spirit of the Employment Equity Act, 1998 (EEA), and does little to close pay gaps. As Mazibuko and Makhongwana point out, the Bill 'is in line with this growing movement towards increased pay transparency.'
It also reframes the conversation entirely: instead of asking what you used to earn, employers are being nudged to ask, what is this role worth, and what can this person bring to it?
And merit-based pay? It thrives under this model because decisions are no longer anchored to arbitrary past figures but built around skills, potential, and responsibility.
Key Highlights of the Bill:
No more salary history questions: Employers may only consider past pay if a formal offer has already been made and the candidate initiates the disclosure.
Pay ranges must be advertised: Vague terms like 'market-related' will no longer cut it. Candidates will know upfront what the job is worth.
Transparent communication: Employees will be able to discuss pay openly, breaking down taboos and secrecy.
Documented pay structures: Employers will need clear records of salary bands and justifications for pay decisions.
It's not just about compliance. It's about modernising how we talk about pay and fairness. As employment law experts at Cliffe Dekker Hofmeyr (CDH) notes, the EEA 'aims to eliminate unfair discrimination and implement policies that correct historical disadvantages experienced by black people, women, and people with disabilities.'
Yes, some employers may face new challenges: assessing value in specialised sectors without historic anchors, or losing the upper hand in salary negotiations. But perhaps it's time we stopped treating equity as a burden and started seeing it as an investment.
Another promising ripple effect of the Bill is how it subtly intersects with broader conversations about the difference between minimum wage and a living wage. Is a legally defined minimum enough to cover housing, food, transport, and school fees? Or should we reframe wage structures entirely to reflect dignity and sustainability?
The Fair Pay Bill invites employers and policymakers to ask these deeper questions.
If enacted, this Bill will be more than legislative housekeeping. It will challenge the status quo, level the playing field, and build stronger trust between employers and the workforce. And in a country still working toward economic justice, that shift is not only overdue, it's necessary.
* Maleke is the editor of Personal Finance.
PERSONAL FINANCE
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Citizen
2 hours ago
- The Citizen
How to be a savvier saver and investor
National Savings Month is an initiative to promote healthier financial habits and encourage households to save. National Savings Month is almost over. Some consumers learned how to save, but how many know how to be a savvier saver and investor? 'In essence, the intention is to foster a culture where South Africans can become more financially disciplined, leading to greater financial independence. To foster this culture, South Africans must learn that small actions in savings and investments can make a big difference in their lives. 'There are positive changes in the financial advice industry that consumers can capitalise on to do this,' Steven Amey, head of Intermediated distribution at Ashburton Investments, says. ALSO READ: South Africans experiencing less financial stress, but still under pressure — survey Why healthier savings and investment habits are necessary According to Eighty20 XDS Credit Stress Report 2025 for the first quarter of 2025, South Africans rely too much on debt. Household debt reached an outstanding R2.56 trillion in the first quarter of 2025, up 2.1% from the previous quarter. 'The most concerning aspect of this is the number of overdue loans. A staggering 34.8% of all loans are in arrears, the first time in two years this number increased,' Amey warns. 'Consumers are battling to pay for rent, food and the basic necessities of life, yet we continue to spend on items that fall outside these categories, evidenced in the 'Mass Credit Market', representing the majority of the South African population. 'Interestingly, approximately 325 000 people started using credit for the first time, in the form of retail loans. Overdue payments on credit cards in the mass credit market increased and 53% are in default, unable to pay an instalment. On average, South Africans spend close to 30% of their income on loans.' ALSO READ: Survey shows how economic distress erodes South Africans' savings culture Statistics show we are not savvier savers Amey points out that according to TransUnion's South Africa Industry Insights Report for the first quarter, the growth in originations for new credit cards at 30.7% compared to the previous year far outstripped growth for other consumer credit products. He says this is cause for concern. How do you change to build better savings habits? Amey says there are a number of good habits South Africans can embrace to improve your financial well-being, including: reviewing your household budget to find where you can save; becoming financially self-disciplined because small changes in spending can make a big difference; and starting to save immediately without hesitation to reap the benefits of compound interest over time. Amey says to start with, you must separate your needs from your wants and rather use your hard-earned salary to pay for the essentials and save the rest or spoil yourself. 'We tend to overreach and spend more than we can afford. The statistics demonstrate this. 'Why extend yourself for short-term happiness when the inevitable of having to return your item or have it repossessed a few months later will cause greater embarrassment?' ALSO READ: How can you save when you use 75% of your income to pay debts? Options to be savvier savers and investors are available He says savings and investment options in South Africa are also evolving in South Africa. 'While learning to save is critical, turning savings into long-term investments is where real wealth is built. To do this, you must be aware of changes in the financial industry that can be leveraged for your benefit. 'The investment value chain dramatically improved for the regular retail investor over the past two decades. We moved from having an investment industry that largely sold financial solutions on the back of attractive commissions to one that has become well-regulated, respected and led by financial professionals that truly care about their clients' financial well-being.' Amey says it is interesting to note that the financial services industry splintered into various advisory groups, each with their own unique value proposition. Many advisors elected to join networks of advisors, ordinarily supported by large established industry providers which assist advisors with regulatory compliance and enable them to offer sound financial advice and a host of additional ancillary services to enhance their value proposition to their clients. In addition, large life and banking advisory divisions offer advisors many of the benefits of a network, with access to additional systems and services these large life and banking channels developed over decades. And then there are the larger, more established independent financial advisory practices that retained their total independence, leveraging the resources they accumulated over years of entrepreneurial practice, Amey says. ALSO READ: Five money mistakes that seem smart, but could cost you a lot later How qualified financial advisers can help us be savvier savers and investors 'Today's Qualified Independent Financial Advisors (IFAs) can render sound holistic financial advice and are regarded as the modern day 'sherpa'. Their role is to prepare and help you navigate the financial complexities of life. 'Holistic financial planning is the epitome, where there is no longer a focus on a single need but a comprehensive analysis, incorporating all aspects of financial planning, from budgeting to cash-flow analysis, tax planning, investment planning and estate planning. 'Once all of this and more is compiled into an understandable and executable financial strategy, financial products, platforms and solutions can be recommended to enable your unique plan.' Amey also warns that while robo-advisor platforms are prevalent and tempting, they should be used only by more informed and astute investors. 'The need for financial advice from a qualified financial advisor remains as strong as ever despite these latest developments.' According to the March report of the Association for Savings and Investment South Africa (ASISA), there are a plethora of investment options available to investors. For instance, there are 1 884 unit trusts (100+ being passive or 'Smart Beta Funds'), commodity funds, hedge funds, structured products, private equity, venture capital funds, fine art, actively managed certificates (AMCs) and more to select from, all adding to the financial complexity investors are facing. 'This is why it is critical to get advice from a qualified financial advisor.' ALSO READ: Savings month: How to save like a millionaire – even if you are not one yet How discretionary fund managers can help us be better savers and investors Amy points out that one very important development is the recent steep growth in discretionary fund managers (DFMs) in South Africa. 'DFMs removed the burden of the advisor having to perform in-depth investment management due diligence and the complexity of having to compile detailed economic and asset management reports. 'Most DFMs have experienced teams, with sound investment processes and philosophies mastered over several years, for the benefit of the advisors they serve. In addition, many DFMs manage significant assets, which can enable them to negotiate reduced asset management fees on behalf of advisors.' He says the investment portfolios they compile may be personalised for the needs of certain financial planning practices or more generally to serve broader financial advisor needs. These portfolios usually comprise large and boutique active asset managers, as well as passive and smart beta investment strategies to reduce overall investment portfolio costs. Advisors then invest their clients' assets into these portfolios to achieve desired investment outcomes.' Amey says it is clear that many DFMs 'add significant value, segregating roles and responsibilities to ensure the advisors they partner with can focus on what they do best'. 'The savings and investment industry evolved significantly over the past two decades. If you want to change your financial fate you must tap into this opportunity. The way to do this is to partner with the highly skilled new generation of accredited financial advisors who lead from the front, acting as much needed financial sherpas for South Africans who want to build a better future.'


The Citizen
13 hours ago
- The Citizen
Top 10 stories of the day: Ramaphosa: Police probe within year
Here's your daily news update for Friday, 25 July 2025: An easy-to-read selection of our top stories. News today includes with some South Africans voicing their concern that the judicial commission of inquiry into the police will take too long, President Cyril Ramaphosa said on Friday it mustn't take more than a year. Meanwhile, South Africa's law enforcement and criminal justice systems are a mess because the people running them are either corrupt, incompetent, or leave under a cloud because of political plotting, say experts. Furthermore, the outbreak of foot-and-mouth disease (FMD) in South Africa has led to a significant increase in meat prices over the past three months. Weather tomorrow: 25 July 2025 Most provinces are in for a cloudy and wet day, while rough seas are expected to affect navigation between the Eastern Cape and KwaZulu-Natal. Full weather forecast here. Stay up to date with The Citizen – More News, Your Way. Ramaphosa says Madlanga commission mustn't take more than one year With some South Africans voicing their concern that the judicial commission of inquiry into the police will take too long, President Cyril Ramaphosa said on Friday it mustn't take more than a year. Two weeks ago, Ramaphosa announced his decision to establish a commission of inquiry to investigate the serious allegations made by KwaZulu-Natal (KZN) police commissioner Nhlanhla Mkhwanazi. KwaZulu-Natal police commissioner Nhlanhla Mkhwanazi. Picture: Gallo Images Among these were claims that police minister Senzo Mchunu – now on special leave – intervened to disband the KZN political killings task team in order to shield individuals linked to politically connected crime syndicates. CONTINUE READING: Ramaphosa says Madlanga commission mustn't take more than one year Evidence challenged in Jayden-Lee Meek murder investigation The investigating officer in the Jayden-Lee Meek murder case faced intense scrutiny during Friday's proceedings in the Roodepoort Magistrate's Court, with the defence questioning critical evidence and investigative procedures. Investigating officer Nceba Diko outlined multiple red flags in suspect Tiffany Meek's behaviour while defending his investigative methods against accusations of procedural failures. Tiffany Meek in the Roodepoort Magistrate's Court for a bail hearing in the murder case of her son, Jayden-Lee Meek. Picture: Gallo Images Defence attorney Noven Naidoo on Wednesday had presented Bolt e-hailing records showing Tiffany Meek left her mother's house at 5.12am on 14 May, contradicting security guard statements that placed her at the residence between 4am and 5am. CONTINUE READING: Evidence challenged in Jayden-Lee Meek murder investigation How political interference hollowed out Saps and NPA South Africa's law enforcement and criminal justice systems are a mess because the people running them are either corrupt, incompetent, or leave under a cloud because of political plotting, say experts. The instability at the top then permeates down to the lower levels of both the police and prosecuting authorities, leading to the gradual collapse SA is witnessing at the moment, they said. Picture: Gallo Images/Frennie Shivambu/Michel Bega Both the South African Police Service (Saps) and the National Prosecuting Authority (NPA) have seen their organisational and political heads come and go with depressing regularity, often under a cloud. CONTINUE READING: How political interference hollowed out Saps and NPA Ramaphosa motion of no confidence: MK party requests secret ballot The uMkhonto weSizwe (MK) party has requested a secret ballot in a proposed motion of no confidence in President Cyril Ramaphosa. The party's deputy president, John Hlophe, wrote to speaker of parliament Thoko Didiza on Thursday. President Cyril Ramaphosa. Picture: GCIS He gave several reasons why the MK party wanted the vote to be done through a secret ballot. CONTINUE READING: Ramaphosa motion of no confidence: MK party requests secret ballot Bad news for meat lovers in South Africa The outbreak of foot-and-mouth disease (FMD) in South Africa has led to a significant increase in meat prices over the past three months. FMD is a highly contagious viral disease of livestock that has a significant economic impact. The disease affects cattle, swine, sheep, goats and other cloven-hoofed ruminants. Picture: iStock Over the past months, SA has seen outbreaks in Gauteng, Limpopo, the Eastern Cape and the Free State. Recently, the department of agriculture lifted restrictions in the Eastern Cape and Limpopo provinces after implementing intensified efforts to contain the spread of the disease. CONTINUE READING: Bad news for meat lovers in South Africa Here are five more stories of the day: Yesterday's News recap READ HERE: Gupta house sold | Meyiwa accused want charges dropped | Tammy Taylor victim speaks


The South African
13 hours ago
- The South African
Gayton responds to rumours PA spiked voters' drinks
Gayton McKenzie has clapped back at reports that his political party, the Patriotic Alliance, spiked the drinks of prospective voters with alcohol. The Minister of Sport, Arts and Culture responded to the claims made by a Democratic Alliance representative following a by-election in Nelson Mandela Bay. The parties disputed over the governance of Ward 34, which the DA ultimately won. According to a media report, DA representative Georgina Feldtman accused the PA of trying to bribe voters with cash at the polling station. Feltman claimed that voters were also given instructions on how to mark their ballot papers in favour of the party governed by Gayton McKenzie. She sensationally also claimed that the party had 'spiked' the water bottles for voters with gin. Responding to the allegation, Gayton clapped back on Facebook: 'The way she is talking, she not only tasted the gin but drank the whole bottles out before she spoke s**t'. Die way sy praat het sy nie net die Gin geproe maar die hele bottles uitgedrink voor sy die stront gepraat het 🤣 Posted by Gayton Mckenzie on Friday 25 July 2025 In an X post, Gayton McKenzie also accused the DA of spreading misinformation about him relating to a viral image, which mistakenly accused him of being associated with alleged murder mastermind, Katiso Molefe. The Sandton businessman was arrested on Monday, 21 July, after allegedly ordering a hit on Oupa John Sefoka, also known as DJ Sumbody, in 2021. On social media, an image of Gayton, PA deputy president Kenny Kunene and another man – later identified as Dan Bhuga – went viral. Many South Africans mistakenly confused the man with Molefe. Gayton McKenzie has responded to a viral pic of him and a friend, mistaken to be Katiso Molefe. The PA leader claims that the DA started the rumour. Images via X: @gaytonmck Gayton clapped back on X: 'Thank you very much, Patriots. The DA was delivering fake pictures of me with murder suspects to every house. But our people know that we would not lie to them. The WC is no longer a given for the DA.' Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 . Subscribe to The South African website's newsletters and follow us on WhatsApp , Facebook , X, and Bluesky for the latest news.