Employment Equity Amendments as Gazetted on 8th of August 2019 :
As the third quarter of 2019 comes to a close, the Department of Labour has thrown another curveball at designated employers within the Employment Equity sphere. The format of the old EEA4 report has been repealed and replaced with a newer version right before the submission period opens for the 2019 Employment Equity Reports. As South African Labour Law is continually changing, organisations are becoming increasingly confused as to what information the Department of Labour requires, and how they will use this information to improve transformation within South Africa. The following changes have been gazetted in terms of the EEA4 report:
The EEA4 – Income Differential Statement will now request the following information from Designated Employers:
Reporting on Fixed/Guaranteed annualised salaries per occupational level, race, and gender
Reporting on variable annualised salaries per occupational level, race, and gender
Reporting on average annual pay for the top 10% of an organisations workforce
Reporting on average annual pay for the bottom 10% of an organisations workforce
Reporting on average annual pay for the middle earners of an organisations workforce
Report on whether an organisation has a policy in place which addresses and aims to close the vertical gap between the highest and lowest paid employees
Report on whether the remuneration gap between the highest and lowest paid employees in an organisation is aligned with remuneration policies
Indicate whether AA measures to address remuneration gaps are included in the organisations Employment Equity Plan
The amendments to the EEA4 Report introduce a unique way for designated employers to report on their income differentials to the Department of Labour; specifically the wage gap between the highest and lowest paid employees. To guarantee that companies report correctly on the information requested by the Department of Labour, the transformation consultants for LabourNet have been well versed in the new amendments. Please contact your allocated consultant or your closest LabourNet branch for more information.
Download the Employment Equity Act 4 form here.
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