Businesses expected to agree to publish pay ratios at Jobs Summit
4 October 2018
The two-day Jobs Summit, which kicks off in Johannesburg on Thursday afternoon, is set to agree to a mechanism which will see businesses employing more than 50 people reporting on pay ratios in their Annual Financial Statements.
According to Business Unity South Africa, the reporting will at first be voluntary, then move to mandatory, and will open the way for improved data and analysis on salaries as well "excessive pay disparities".
Businesses are already required to report income differentials under the Employment Equity Act, but Busa CEO Tanya Cohen says the scope of the data has been limited so far, and there has been no mechanism for companies to benchmark themselves according to their industry or size.
The reporting of pay scales is just one of the 25 agreements expected to be signed on Thursday at the high-level jobs summit, convened by the National Economic Development and Labour Council (Nedlac) in a bid to bring government, business, labour and community together to try to tackle the rising unemployment rate - recorded at 27.2% in the second quarter of 2018.