South Africa’s Fair Pay Bill: What It Means for Employers and Employees

News headlines are going to be buzzing for the rest of the year since Build One South Africa (BOSA) submitted its Fair Pay Bill on 16 June 2025, officially named the Employment Equity Amendment Bill, 2025. This proposed new legislation seeks to amend the existing Employment Equity Act of 1998, targeting unfair pay practices and enhancing transparency in South African workplaces.

But what exactly does this new bill mean for both employers and employees? 

What is the Fair Pay Bill?

The Fair Pay Bill, introduced by Mmusi Maimane’s Build One South Africa (BOSA) on 16 June 2025, addresses two significant areas:

1. Ending salary discrimination by prohibiting employers from basing pay offers on a candidate’s previous salary.
2. Increasing transparency by requiring employers to clearly disclose salary ranges and allowing employees to openly discuss their salaries.

The goal is to prevent historical inequalities from impacting future salaries, creating a fairer and more transparent employment landscape.

How the Fair Pay Bill Will Impact Employees

This bill will have significant impact for employees both entering the workforce and currently employed, with 3 key ways that change how jobs can be advertised, interviews conducted and in the limits imposed on salary discussions between employees.

Your Past Salary is Protected

Employers will no longer be allowed to inquire about candidates’ past salaries during recruitment. This includes any indirect attempts to gather salary information.

Candidates can still voluntarily request, in writing that their past remuneration be considered, but only after receiving an official job offer.

Employees Can Openly Discuss Their Salaries

A notable feature of the bill is that it explicitly protects employees’ rights to openly discuss their salaries with colleagues. Employers are legally prohibited from penalizing employees who choose to share salary details.

This transparency empowers employees, allowing them to better understand their position within the company and promote fairness.

Clear Salary Information in Job Adverts

Job seekers will benefit from clear information upfront. Employers must now disclose exact salaries or salary ranges when advertising positions, promotions, or transfers, enabling applicants to fully understand what to expect.

What Employers Need to Know and Do

• Update Recruitment Practices to Exclude Salary History Questions
  Employers must immediately remove all requests or inquiries related to past salaries from job applications, interviews, or negotiations. Salary offers must be based solely on the role, experience, or clearly defined pay scales. Only when specifically requested by the candidate after a formal offer can past salaries be considered.
• Develop Clear and Transparent Salary Ranges
  Employers must now clearly define, justify, and communicate their salary ranges. This requires businesses to standardize and document pay scales internally and disclose them publicly when recruiting or promoting.
• Respect Employees’ Rights to Discuss Pay
  Employers must actively ensure that no employee is penalized or discouraged from openly discussing remuneration. This requires fostering a culture of openness and ensuring management understands and complies with this legal requirement.

Advantages and Challenges of the Fair Pay Bill

Advantages:

• Reduces Wage Inequality: Directly addresses historic wage disparities, benefiting women and historically disadvantaged groups.
• Builds Workplace Trust: Transparency enhances employee morale, trust, and motivation.
• Global Alignment: Aligns South Africa with international equal-pay standards and labour practices.

Challenges:

• Reduced Flexibility: Employers might find less flexibility in adjusting pay according to individual or market factors.
• Increased Administrative Load: Small and medium-sized enterprises might face additional administrative responsibilities and expenses.

Where to Read the Fair Play Bill

You can read the fair pay bill here or on the BOSA website, BOSA has also announced the Fair Pay Campaign that will roll out across the country over the coming weeks. This will include roundtables, town hall meetings, lobbying as well as podcasts and video explainers to make sure everyone in South Africa knows what this bill means.

What comes next

Now that the bill has been formally introduced, it will enter a critical phase of parliamentary debate and review. In the coming months, parliamentarians will deliberate on its provisions, consult with stakeholders—including the general public—and possibly propose amendments before a final vote is taken. If passed by Parliament, the bill will then be presented to the President for final approval and signing into law. Businesses and employees should stay informed and engaged, preparing themselves for the changes this legislation may bring to South African workplaces. Ultimately, this bill marks a pivotal opportunity for South Africa to achieve greater fairness, transparency, and equality in remuneration.