South Africa’s new company laws cut both ways

Listed companies and State-owned Entities now have to disclose the pay gap between their highest- and lowest-paid workers, which some say will have a positive impact, while others have flagged some major risks.

According to the amendments to the Companies Act, companies must report the earnings gap between the total pay of the top 5% highest-paid employees and the total pay of the bottom 5% lowest-paid workers. Vlok added that the disclosure law would benefit the work environment in several ways and put executives and remuneration committees on edge.

Vlok, this is good because, much like many major industries, executive pay is in the hundreds of millions of rands, which is a remuneration policy that doesn’t always align with performance. Companies are unlikely to reduce executive pay but may outsource lower-level jobs, potentially resulting in fewer job opportunities and less stability for low-wage workers.

The Palma ratio, which compares the bottom 40% to the top 10%, is considered more suitable for economies with many low-wage workers.

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

South Africa: Chinese E-Commerce Companies Popular in South AfricaRotondwa Mbadaliga is a self-professed 'shopping addict.' The 25-year-old South African fashion influencer says she is a huge fan of Chinese-linked e-commerce companies Shein and Temu because she can get the latest trends at the cheapest prices delivered straight to her door.
Sumber: allafrica - 🏆 1. / 99 Baca lebih lajut »

Google adding marker for South African companies in search resultsThe move by Google is the result of remedial actions imposed by the Competition Commission.
Sumber: TechCentral - 🏆 8. / 71 Baca lebih lajut »

Ramaphosa signs big change for companies in South AfricaPresident Cyril Ramaphosa has signed the Companies Act into law, which brings big changes to pay disclosure.
Sumber: BusinessTechSA - 🏆 24. / 61 Baca lebih lajut »

Top companies in South Africa offering big bursaries for 2025 – including Standard Bank, Amazon and moreMany of South Africa’s biggest employers offer funding to undergratdate and postgraduate students.
Sumber: BusinessTechSA - 🏆 24. / 61 Baca lebih lajut »

South Africa’s three top cloud providers — and one companies avoidMyBroadband’s business IT decision-maker survey revealed that Google, Microsoft Azure, and AWS are the top cloud providers, while most companies avoid Huawei Cloud.
Sumber: mybroadband - 🏆 11. / 67 Baca lebih lajut »