Pay Secrets Could Be Over: South Africa’s Fair Pay Bill Set to Shake Up Hiring

New law may ban salary history questions and force upfront pay transparency in job ads

If you’re a job seeker in South Africa, you might soon have more control over your earnings and fewer awkward conversations about what you made in your last role.

A new proposal tabled before the National Assembly, known as the Fair Pay Bill, is aiming to radically transform how South Africans are hired and paid, by banning salary history questions and forcing employers to publish salary ranges in job ads.

It’s a bold move that could shift power back into the hands of candidates and take aim at pay inequality, especially for women and historically disadvantaged groups.

What Is the Fair Pay Bill Trying to Fix?

At its core, the bill wants to promote fairness, transparency, and equity in the workplace.

It’s no secret that South Africa ranks as one of the most unequal societies in the world, with a Gini coefficient among the highest globally. Salary inequality is a major driver and critics have long argued that keeping salaries secret or basing new offers on previous pay just keeps the cycle of underpayment going.

Now, lawmakers want to break that cycle.

The bill is designed to amend the Employment Equity Act of 1998, and it comes with a few big changes.

No More “What Did You Earn at Your Last Job?”

Under the new proposal, employers will be banned from asking job candidates about their previous salaries, unless two very specific things happen:

1. The employer has already made a job offer.

2. The candidate voluntarily requests that their previous pay be considered, in writing.

This is a huge change from current hiring norms, where salary history often determines your future paycheck. It’s a practice that’s been heavily criticised for keeping wage gaps alive, particularly for women and black professionals who may have started their careers under lower pay scales.

Salary Ranges Must Be Shared Up Front

The bill also proposes that employers clearly state either a salary or a salary band when advertising, grading, or transferring positions.

This gives job seekers a more realistic sense of what to expect, saving both sides time and reducing disappointment over offers that don’t match expectations. It also means that pay negotiations can’t go below the advertised range, creating a fairer playing field for applicants.

Say Goodbye to Pay Secrecy

Another striking proposal? The bill explicitly outlaws clauses that prevent employees from discussing their salaries.

Technically, South African workers already have the right to talk pay, but many employment contracts still include vague or intimidating clauses that discourage these conversations.

By scrapping those restrictions outright, the bill empowers employees to compare notes, expose unfair pay, and challenge discriminatory practices more confidently.

What Does This Mean for Employers?

For businesses, this bill will bring big changes and some growing pains.

Legal experts at Cliffe Dekker Hofmeyr (CDH) note that employers will need to adjust their entire recruitment and pay infrastructure:

• Application forms

• Interview scripts

• Internal salary-setting policies

• HR training

• Compliance tracking tools

Companies will also need to justify pay differences using valid criteria, like experience, qualifications, or performance and keep records in case of audits or disputes.

And yes, competitors may be able to see what you’re paying, but broad salary bands are allowed to protect sensitive business data.

What About Smaller Businesses?

Here’s where things get trickier. Small businesses and those in informal or evolving sectors, like creative freelancing or tech startups, might struggle to benchmark pay or meet administrative requirements.

The bill doesn’t ignore this. CDH suggests that exceptions or support measures may need to be built in to protect smaller employers from being unfairly burdened.

How Is South Africa Reacting?

Online reactions have been mixed, but largely supportive from the public.

Job seekers have applauded the move on X and LinkedIn, calling it “long overdue” and “a win for young professionals.” Some users even shared how they were offered 20% less than peers with the same role, simply because their starting salary was lower.

Employers, on the other hand, are bracing for an administrative overhaul. Industry forums and HR managers have raised concerns about implementation costs, benchmarking challenges, and maintaining pay competitiveness.

What Happens Next?

Right now, the bill is just at the starting line. It’s been tabled in Parliament and will go through:

• Legal review

• Public comment (via Government Gazette)

• Committee debates

• Final amendments and voting

If passed, this will be one of the most significant shifts in South African labour law in decades.

Why This Bill Matters

Pay transparency isn’t just a buzzword. Around the world, countries like the UK, Germany, and several US states have already implemented similar laws and early signs show reduced pay gaps and improved job satisfaction.

For South Africa, where deep inequalities still shape the workforce, the Fair Pay Bill could become a tool for real change, if done right.

It gives job seekers more power, clarity, and fairness. And it pushes employers toward accountability and equitable hiring.

Time will tell if this bill becomes law. But for now, it signals a powerful shift in how we talk about money, worth, and fairness at work.

{Source: BusinessTech}

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