In an article we wrote in July 2025, we highlighted key issues relating to the Employment Equity Amendment Bill. People commonly refer to this legislation as the Fair Pay Bill, which Build One South Africa (BOSA) proposed.
On 30 April 2026, a Notice confirmed BOSA’s intention to introduce an updated version of the Bill in the National Assembly.
The Fair Pay Bill aims to address two recruitment practices that lawmakers consider persistent and harmful:
- The widespread use of a job applicant’s past remuneration to determine starting pay, which anchors future earnings to salaries often shaped by discriminatory factors.
- The lack of pay transparency in recruitment processes, especially in the private sector, where employers often use vague terms such as “market-related” or “competitive” instead of clear remuneration figures.
Creating a more competitive and equitable job market
The memorandum to the Fair Pay Bill states that the absence of salary disclosure in job advertisements gives prospective employers an information advantage. Employers may then use this advantage to underpay candidates, particularly those from historically disadvantaged groups. Therefore, mandatory disclosure aims to create a more competitive and equitable job market.
The bill seeks to reduce information asymmetry and address persistent gender and race-based pay disparities. The bill also seeks to amend section 3 of the Employment Equity Act 55 of 1998 (EEA).
Core reforms proposed under the Fair Pay Bill
This amendment would require interpretation of the Act in compliance with South Africa’s obligations under the International Labour Organisation’s Convention (No. 100) concerning Equal Remuneration.
The Fair Pay Bill introduces three central reforms:
- Prohibition on salary history
Employers may not ask about, or rely on, an applicant’s past or current remuneration during recruitment and hiring decisions.
- Mandatory pay transparency
Employers must disclose remuneration or remuneration ranges:
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- in job advertisements
- on request by applicants or employees
- Right to discuss pay
Employees may share and discuss remuneration information. As a result, employers will face limits on enforcing pay secrecy practices.
Key provisions of the updated bill – definitions
The updated bill introduces several important new or amended definitions, including the following:
- “Current remuneration,” which the earlier version of the Bill did not define, now means “the remuneration of a person in their current employment”.
- In relation to the definition of “employment policy or practice”, the updated Fair Pay Bill adopts a clearer approach to the proposed amendments. In addition, the Bill inserts a new standalone sub-paragraph (cA). This paragraph expressly includes “salary benchmarking and remuneration ranges for a job or position” as an employment policy or practice.
- “Enquiring,” which appeared as “enquire” in the earlier version of the Bill, now has a broader definition. It means “any attempt to gather information, directly or indirectly, either personally or through an agent”.
- “Past remuneration” now has a narrower definition than the earlier version of the Bill. It means “the remuneration of a person in any of their past employment”.
- “Remuneration information” now means “any information or records relating to or showing a person’s remuneration, including salary records and proof of payment.” This differs from the earlier reference to “past remuneration information”.
- “Remuneration range,” which the earlier version of the Bill did not define, now means “the range of remuneration that an employer currently pays for a job or position, or intends in good faith to pay upon hire”.
Remuneration transparency – proposed section 6A of the EEA
Employers must determine remuneration or remuneration ranges for each job or position when conducting job classification, grading, or evaluation. The updated Fair Pay Bill frames this provision differently from the earlier version.
The earlier version only triggered the obligation if employers conducted job classification and grading. However, the updated Bill now makes this obligation mandatory whenever classification occurs. It also expressly subjects the obligation to section 6(4) of the EEA and any prescribed criteria or methodology under section 6(5) of the EEA.
The bill also introduces a new obligation requiring employers to disclose remuneration or remuneration ranges on request. This applies to jobs or positions for which a person currently works, has applied or wishes to apply.
This position differs from the earlier version of the Bill. Previously, employers only needed to disclose remuneration before appointing, promoting, or transferring an employee into a position, and when advertising or recruiting for that position.
Prohibition on use of past or current remuneration – proposed section 6B of the EEA
The earlier version of proposed section 6B used impersonal wording.
The updated bill now makes it clear that employers may not, during recruitment, selection or appointment processes:
- enquiring into an applicant’s past or current remuneration, or requiring remuneration information, and
- determining remuneration or terms and conditions of employment based on an applicant’s past or current remuneration.
The bill creates one exception. After an employer has already made an offer of employment, the applicant may request in writing that the employer consider past or current remuneration. Importantly, the updated Fair Pay Bill also introduces a new provision. This provision states that past or current remuneration cannot justify income differentials or unfair discrimination.
Proposed amendments to section 9 of the EEA
Section 9 of the EEA currently states that, for purposes of sections 6, 7 and 8, the word “employee” includes an applicant for employment. In practical terms, these protections extend beyond existing employees. They also protect job applicants against unfair discrimination, medical testing and psychological testing.
The bill proposes replacing section 9 entirely. The substituted section would carry the heading “Applicants” and would read: “For purposes of sections 6, 6A, 7 and 8, ‘employee’ includes an applicant for employment”.
Notably, the substituted section 9 does not refer to proposed section 6B. This omission appears consistent with the personified wording of section 6B and its direct references to applicants.
Next steps
The bill currently remains open for public comment. Interested parties and institutions may submit written representations on the proposed content of the Bill to the Speaker of the National Assembly within 30 days, namely by 29 May 2026.
Representations may be:
- delivered to the Speaker, New Assembly Building, Parliament Street, Cape Town;
- mailed to the Speaker at PO Box 15, Cape Town, 8000; or
- emailed to speaker@parliament.gov.za and copied to info@fairpaybill.co.za.
One unintended consequence of the Fair Pay Bill may involve upward wage pressure for employers. The Bill may also reduce flexibility in remuneration negotiations. We will keep an eye on these developments and give further guidance as the Fair Pay Bill progresses through Parliament.
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| Imraan Mahomed | Director | Employment Law Practice | mail me | | Lee Masuku | Senior Associate | Employment Law practice | mail me | |
| | Cliffe Dekker Hofmeyr | | |
