The Companies Amendment Act 16 of 2024 added sections 30A and 30B to the Companies Act: a remuneration policy and a remuneration report for public and state-owned companies, with a disclosure of the gap between the highest and lowest paid. They came into force on 22 May 2026 (Proclamation Notice 313 of 2026), with no transitional provisions.
Who
Public companies and state-owned companies. Separately, the amended section 30(4) requires every company whose annual financial statements must be audited to show the remuneration of each director and prescribed officer by name.
The remuneration policy: section 30A
The company's remuneration policy for directors and prescribed officers is put to shareholders and approved by ordinary resolution at the annual general meeting.
The remuneration report: section 30B
The report presented to shareholders must disclose, under section 30B(3)(c):
| (i) | The total remuneration of each director and prescribed officer |
|---|---|
| (ii) | The total remuneration of the employee with the highest total remuneration |
| (iii) | The total remuneration of the employee with the lowest total remuneration |
| (iv) | The average total remuneration and the median remuneration of all employees, and the remuneration gap: the ratio between the total remuneration of the top five per cent highest paid employees and the total remuneration of the bottom five per cent lowest paid employees |
Working out the figures
- Take every employee's total remuneration for the year on one definition (fixed pay, benefits, short- and long-term incentives as the policy defines them), annualised consistently for part-year employees.
- Highest and lowest: the single largest and smallest totals.
- Average: the sum of all totals divided by the number of employees. Median: the middle total when they are ranked.
- The gap: rank employees by total remuneration; add up the totals of the top 5% by headcount, and of the bottom 5%; divide the first by the second.
- Keep the employee list, the definition and the calculation as the evidence behind the report.
Related reporting
- The EEA4 income differential statement under the Employment Equity Act, which reports pay by occupational level, race and gender.
- Equal pay for work of equal value, under section 6(4) of the Employment Equity Act and the 2025 regulations.
Sources
- Companies Act, section 30B
- DLA Piper: commencement of the amendments
- Acts Online: three more 2024 amendments in force
RemCycle: salary review and bonus software
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