Every year, designated employers in South Africa are obligated to submit an employment equity report in accordance with Section 21 of the Employment Equity Act (EEA).
The period in which the report can be submitted is from 1 September to 15 January. The submission entails 2 documents, namely the EEA2 and EEA4. The EEA2 indicate the total employees currently in service, total employees that resigned during the equity term and those that were appointed. The EEA4 is a summary of the salaries for each race and gender according to their Occupational Levels.
On 8 August 2019 The Department of Labour (DOL) published an update on the Employment Equity Regulations, specifically a repeal and indicated the significate changes to the EEA4 form. Employers are still required to complete the EEA4 form and send it, together with the EEA2 form when they do their employment equity reports. The EEA4 form generally contains the format for reporting income differentials to the Employment Conditions Commission. All designated employers are required to complete this form.
The Amended EEA4’s regulations introduce a different way companies should report on their remuneration in the workplace. Companies are required to analyse salary information for Employment Equity more meticulously providing reasons for Income Differentials. It also requires companies to indicate which remuneration policies they have in place to ensure “equal pay for equal measure”. Companies are also required to indicate if it’s measured in the Employment Equity Plan.
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 address and 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
To guarantee that companies report on the information requested by the Department of Labour. We have updated our EE STACS Information Collection Sheet and general mandate of collecting Employment Equity information.
Our step by step guidelines will assist you in gathering the most vital information required for the Employment Equity reports. We will engage with you regularly over the next 4 months to consult and assist you in ensuring the successful submission of your Employment Equity Reports to the Department of Labour.
Corporate Strategy Group looks forward to facilitating the reporting process once again and will ensure the smooth transition to the new EEA4 reporting structure.
Should you have any unclarity regarding the Employment Equity Reporting. You are welcome to contact Anthea Adams at our office for further assistance at 021 863 0520 or support@corporatestrategy.co.za
