Employment Equity Act, 1998 (Act No. 55 of 1998)

Code of Good Practice

Equal Pay/Remuneration for Work of Equal Value

2. Scope
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2.1This Code is issued in terms of section 54 of the Employment  Equity Act, 1998 (Act No. 55 of 1998) as amended, its regulations and other Codes issued in terms of the Act. In particular, this Code must be read in conjunction with—
2.1.1the regulations made by the Minister of Labour in terms of section 6(5) of the Employment Equity Amendment Act, 2013 on the criteria and methodology for assessing work of equal value2; and
2.1.2the Code of Good Practice on the Integration of Employment Equity into Human Resources Policies, Practices and Procedures (HR Code), in particular Part B dealing with Terms and Conditions of Employment.

 

2.2This Code applies to all employers and employees covered by the Act. To obtain greater clarity as to the definition of an employee, reference should be made to the Code of Good Practice: Who is an Employee issued by the National Economic Development and Labour Council (NEDLAC) in terms of the Labour Relations Act, 1995 (Act No. 66 of 1995), as amended.

 

2.3The Code promotes the elimination of unfair discrimination in respect of pay/remuneration by applying the principle of equal pay/remuneration for work of equal value.

 

2.4The term "remuneration" as defined in the Basic Conditions of Employment Act3, 1997 (Act No. 75 of 1997), as amended and other labour legislation includes any payment in money or in kind, or both, made or owing to any person in return for working for another person, including the State.

 

2.5Employers must, therefore, examine all aspects of their pay/remuneration policies and practices to ensure compliance with the principle of equal pay/remuneration for work of equal value.

 

2.6The code provides guidance when interpreting the Employment Equity Act (the Act) and its regulations.

 

 

2Any reference to regulations in this Code refers to the Employment Equity Regulations, 2014.

 

3 BCEA Schedule on Calculation of Employee's Remuneration in terms of Section 35(5), as published under GN 691, 23 May 2003, which provides guidance on calculating remuneration.