SEPTEMBER 2019 – SOUTH AFRICA EMPLOYMENT EQUITY EEA4 FORM
It is important that employers note the following:
Changes to the Employment Equity EEA4 Form
In August 2019 the Department of Employment and Labour repealed the old EEA4 form, as published in the Employment Equity Regulations of 1 August 2014, and replaced it with a new version. The new form became effective on 8 August 2019.
The EEA4 form generally contains the format for reporting income differentials to the Employment Conditions Commission.
The Department of Labour stated that the old form is ineffective. The main purpose of the new form is to enable companies to analyse salary information pertaining to employment equity more diligently and provide reasons for income differentials to reduce the remuneration gap between the highest and lowest paid employees.
Two new sections, section D and E, have been added to the EEA4 form. Section D requires the remuneration of the employee with the highest total remuneration, i.e. fixed/guaranteed and variable remuneration, in terms of race group and gender for all the occupational levels, except the lowest occupational level in a company. Section E requires the average/median remuneration and the remuneration gap.
The new format specifically focuses on the following:
- 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 organisation’s workforce.
- Reporting on average annual pay for the bottom 10% of an organisation’s workforce.
- Reporting on average annual pay for the middle earners of an organisation’s workforce.
- Reporting on whether an organisation has a policy in place which addresses and closes the vertical gap between the highest and lowest paid employees.
- Reporting on whether the remuneration gap between the highest and lowest paid employees in an organisation is aligned with remuneration policy.
- Indicating whether affirmative action measures to address remuneration gaps are included in the organisation’s Employment Equity Plan.
Employers are required to complete the EEA4 form and submit it with the EEA2 form when they complete their employment equity reports.
The report can be submitted between 1 September 2019 and 15 January 2020.
To view the Government Gazette containing the new form, follow the link, selecting 42627 8-8 Labour under Separate Gazettes.
Contact our legislation team at info@crs.co.za if you require any additional information.
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