Employment Equity Act, 1998 (Act No. 55 of 1998)Code of Good PracticeEqual Pay/Remuneration for Work of Equal Value7. Factors Justifying Differentiation in Pay/Remuneration |
| 7.1 | Once jobs have been evaluated and/or graded, the various jobs are allocated pay/remuneration packages in accordance with the pay/remuneration philosophy of the employer and the value of the jobs. Employers are required to ensure that unfair discrimination does not occur at any of these stages. |
| 7.2 | Where employees perform work that is the same or substantially the same or is work of equal value, a difference in terms and conditions of employment, including pay/remuneration, is not unfair discrimination if the differentiation is not based on a listed or on any other arbitrary ground in terms of section 6(1) of the Employment Equity Act, as amended. |
| 7.3 | Regulation 7 of the Employment Equity regulations lists a number of grounds which are commonly taken into account in determining pay/remuneration. Subject to what is stated below, it is not unfair discrimination if the difference is fair and rational and is based on any one or a combination of the following factors— |
| 7.3.1 | the individuals' respective seniority or length of service; |
| 7.3.2 | the individuals' respective qualifications, ability, competence or potential above the minimum acceptable levels required for the performance of the job; |
| 7.3.3 | the individuals' respective performance, quantity or quality of work, provided that employees are equally subject to the employer's performance evaluation system, and that the performance evaluation system is consistently applied; |
| 7.3.4 | where an employee is demoted as a result of organisational restructuring or for any other legitimate reason without a reduction in pay/remuneration and fixing the employee's salary at this level until the pay/remuneration of employees in the same job category reaches this level; |
| 7.3.5 | where an individual is employed temporarily in a position for purposes of gaining experience or training and as a result receives different pay/remuneration or enjoys different terms and conditions of employment; |
| 7.3.6 | the existence of a shortage of relevant skill in a particular job classification; and |
| 7.3.7 | any other relevant factor that is not unfairly discriminatory in terms of Section 6(1) of the Act. |
| 7.4 | These factors may not be used to determine pay/remuneration in a manner that is biased or indirectly discriminates against an employee or group of employees based on a listed or on any other arbitrary ground in terms of section 6(1) of the Act. |