South Africa may soon see significant shifts in how salaries are determined, advertised, and discussed in the workplace. A new draft law, the Fair Pay Bill, introduced to Parliament in June 2025, seeks to promote pay transparency, address inequality, and bring local labour practices in line with international standards.
If passed, the legislation would amend the Employment Equity Act of 1998 by introducing key changes:
- Ban on prior salary disclosure: Employers would be prohibited from asking candidates about their previous pay, unless an offer has already been made and the candidate voluntarily consents in writing.
- Mandatory salary disclosure in job advertisements: Employers must include a specific salary or a defined range when advertising vacancies, classifying roles, or making appointments.
- Removal of pay secrecy clauses: The bill explicitly prohibits confidentiality clauses that prevent employees from discussing their pay with colleagues, thereby reinforcing the right to salary transparency.
These changes are aimed at tackling gender-based pay gaps, reducing systemic inequality, and ensuring fairer, more transparent recruitment and remuneration practices.
What This Means for Employers
If enacted, the Fair Pay Bill will require a strategic overhaul of current recruitment and compensation practices. Employers will need to:
- Update job advertisements, application forms, and interview processes;
- Disclose salary ranges in job postings and internal role classifications;
- Review and amend contracts that include confidentiality clauses about pay;
- Train HR teams and managers on compliance and transparent pay practices; and
- Conduct internal pay audits to ensure equity and justification for any pay differentials.
Proactive steps, such as benchmarking salaries, documenting pay decisions, and standardising compensation frameworks, will be key to ensuring compliance and managing reputational risk. The bill’s progression through Parliament will be closely watched in the coming months.
We encourage employers, IR/HR professionals, and legal practitioners to engage with these developments and share their insights.
