Gender pay gap left out of new bill

• Published date: 17 November 2023
• Publication title: Business Day (Johannesburg, South Africa)

The amendment bill, which is being considered by the portfolio committee on trade, industry & competition, proposes changes to the Companies Act and requires better disclosure of the pay gaps at a listed firm to deal with inequality in SA

It requires listed firms to disclose the salary of the top and the lowest-paid worker and the ratio between the top and bottom 5% of earners.

In submissions on the bill, circulated for public comment, Old Mutual Investment Group and Aeon Investment Management and the Association of Black Securities and Investment Professionals suggested that listed firms be required to disclose the gender gap. This is the average difference between what men and women in the same company earn.

Trade, industry & competition minister Ebrahim Patel agreed to the addition of such a clause, but this may mean the amendment bill, which has already been out for comment, would need to be resubmitted for public comment.

This is because the gender pay gap provision would be new and an insufficient public comment process can result in legal challenges. Adding this clause and a new comment period would lengthen the process of adopting the Companies Amendment Bill as law.

The committee voted six to four on Wednesday not to add the amendment to the bill but leave it to be dealt with by the new parliament after elections.

ANC MP Simanga Mbuyane suggested the clause should not be added to the bill but should be further investigated by the department of trade, industry & competition.

DA MP Dean MacPherson said he was "dismayed" and accused the ANC of paying lip service to gender pay disparities. He told members of the committee "we must do everything we can to include these [gender gap] proposals into the bill because ... we can’t talk about serious issues like gender disparity and then leave it to the future".

If the gender pay gap provisions were added to the bill, the law-making process could still be finalised before the sixth parliament wraps up before elections, he said.

If gender gap provisions were not included in the bill, it could be "years" before the issue is addressed in the new parliament and included in legislation.

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