Important Employment Equity updates September 2019

Date: 3 Sep 2019

The 2019 Employment Equity portal was supposed to be accessible for submission, from 1 September however the EE Portal is not yet open. The Department apologies for the delay.

All amendments in the recent Bill are not yet effective. This means that those employers who qualify to report as a result of their turnover (See Schedule 4) must STILL continue to report as normal this season.

Amended EEA4 document must be used for this year’s submission. The purpose of the new format is to support the goal of South Africa with aligning with the Switzerland policy that “the lowest paid earner of an organisation should not be paid less than twelve times less than the highest paid earner.” (Note, NOT just by Occupation level)

Income differentials must show:

  • Reporting on Fixed/Guaranteed annualized salaries per occupational level, race and gender
  • Reporting on variable annualized salaries per occupational level, race and gender
  • Reporting on average annual pay for the top 10% of an organisations workforce
  • Reporting on average annual pay for the bottom 10% of an organisations workforce
  • Reporting on average annual pay for the middle earners of an organisations workforce

Payroll Service providers need to update the EEA4 report on their systems to ensure that the information downloaded is in line with the new government requirements. Reports are anticipated to be released in the correct format towards the middle of September.

In June of this year, Ramaphosa reported “We are not going to scrap B-BBEE”.

Companies investing in BBBEE please note that the Department of Employment and Labour will verify your Employment Equity reports BEFORE providing a compliance certificate. All information must be correct before you will be able to provide your verification agent with proof of your submission. Without this, you may be penalised on your scorecard.

Any company reported for non-compliance to the National minimal wage and collective bargaining schedules will not be awarded their compliance certificate.

The number of DeL Employment Equity inspectors is due to be increased.

An anonymous reporting system will be set up to allow employees to report employers for non-compliance, discrimination and unfair practices.