The Minister of Employment and Labour has expressed approval for the President’s signing of the Companies Amendment Act into law.
Minister Meth highlighted that this legislation is closely linked to the Employment Equity Amendment Act, 2022, especially section 27, which addresses the requirement for designated employers to provide a statement of income differentials.
The new law mandates that companies disclose the average and median total remuneration of all employees, as well as the pay gap between the top 5% highest-paid employees and the bottom 5% lowest-paid employees. This requirement is expected to shed light on existing employment inequalities. Consequently, the efforts of the Department of Employment and Labour to reform the labour market will be bolstered, as the two laws complement each other and promote greater transparency from employers.
Minister Meth stated, “Our Departmental inspectorate will work to promote, strengthen, and enforce compliance with our labour laws, as we aim to create a labour market conducive to economic growth.”
Source: https://www.gov.za/news/media-statements/minister-nomakhosazana-meth-welcomes-signing-law-companies-amendment-act-29