#TheTakeOffInterview| The COVID-19 pandemic has highlighted the need for economic policy reforms to address deep socio-economic inequalities in South Africa, including transparent pay reporting towards closing the persistent gender pay gap which sees South African women still earning up to 35% less[i] than men for doing the same work.
If South Africa is to dislodge its stagnant gender pay gap, mandatory pay transparency – making gender differences in wages known to employees, government and the public – can be the means to compel employers to remunerate fairly and equally, according to a new study by the University of Stellenbosch Business School (USB).
While collective bargaining and the introduction of the national minimum wage have seen the gap narrowing for women in lower-earning jobs, for women in middle and upper pay levels the gap has actually widened and continues to do so.
The problem is greater in the private sector where pay is market-driven, since public sector wages are largely standardised
Guest: Prof Anita Bosch, the USB Research Chair for Women at Work, The study’s lead author
Their recommendations for greater transparency on pay include more detailed, gender pay-related information captured in existing reporting required from companies on employment and remuneration, mandatory pay audits and requiring pay information to be made available to unions and employees, as well as penalties for non-compliance.
The importance of equal pay for equal work was highlighted by the fact that more than a third of South African households are headed by women[iv] and female-headed households are approximately 40% poorer than those headed by men[v]. Almost half of female-headed households support extended family, compared to just over 20% of male-headed households[vi]