Thought Leadership: Tackling the Gender Pay Gap: A Key Priority for South Africa’s Future Beyond Women’s Month
"We must raise both the ceiling and the floor to ensure that all women have the opportunity to earn equal pay for equal work."
Sheryl Sandberg
In a country considered to be one of the most unequal societies globally, the persistence of the #GenderPayGap (GPG) provides overwhelming evidence of the entrenched gendered and racialised nature of inequality in South Africa. Despite constitutional commitments to equality, women continue to earn significantly less than men for comparable work- an injustice that undermines social and economic growth. For every R100 a man earns, R72.44 is earned by women for the same job. This disparity has far-reaching consequences, from deepening economic insecurity for women, to perpetuating generational inequality and diminishing overall economic activity.
In August we commemorated #WomensMonth and as we move into September, it is important to review what needs to change in order to shift the dial on this issue to achieve true gender equality. The National Business Initiative (NBI) recognises that addressing gender inequality is not just a moral imperative, but a critical lever for organisational change and societal transformation. Our aim is to build on the great strides achieved in transforming the world of work over the past three decades by continuing to unlock organisational diversification, innovation and efficiencies. By doing so we can collectively contribute to improving business’ role in growing and sustaining our 21st century economy.
South Africa ranked 20 out of 146 countries in the World Economic Forum's Global Gender Gap Index 2023, which indicates some progress. However, the continued prevalence of gender pay disparities highlights a deeper, systemic problem.
When women are paid less than men for the same work, it not only negatively affects their own financial stability and security, but also has a cascading effect on their ability to access basic human rights such as education and healthcare for their dependents, which drives poverty and inequality among women and therefore more broadly in society. Moreover, when women are economically marginalised, they are less likely to leave abusive relationships, leading to increased exposure to intimate partner violence and GBV. Research further shows that daughters of women who experience pay gaps are more likely to face similar disparities in their own careers, perpetuating a cycle of inequality [1]. Thus, the gender pay gap is not just about wages; it is a reflection of broader societal injustices that span generations.
Beyond Equal Pay: The Broader Challenge
Addressing the gender pay gap is not solely about ensuring equal pay for equal work, it requires dismantling the systemic undervaluation of female-dominated occupations and driving broader societal shift in norms, policies and practices to challenge gender-based discrimination. Several factors contribute to the ongoing gender pay gap. These influencers include (but are not limited to):
?Unconscious biases: Socio-cultural norms about what constitutes typical “male” and “female work”.
?Direct and tacit discrimination: Women often face both overt and subtle forms of discrimination in the workplace.
?Disproportionate work-life balance: Women disproportionately bear the responsibility of unpaid care work, impacting their career advancement.
?Barriers to Education and Training: Limited access to basic rights such as health and education for young girls impedes their entry into higher education and training, and by extension being considered for well-paying employment.
?Unionisation and Industry Segregation: Male-dominated industries often benefit from stronger union representation and higher wages, while female-dominated sectors such as care, hospitality, and retail are underpaid and undervalued and poorly organised.
The intersection of these factors perpetuates workplace inequalities and gives rise to gender pay disparity. Without proactive and sustained interventions, we will ultimately deepen already entrenched inequalities and further delay women’s socio-economic empowerment from one generation to the next.
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A Call for Transparency and Accountability
Overcoming income inequality within the workforce requires a serious commitment to collaborative and transparent empowerment efforts and interventions to close this gap permanently. Organisations must first understand their pay gaps to take immediate and appropriate remedial action.
While South African legislation encourages organisations to report income differentials across race and gender to the Department of Employment & Labour, this information is not publicly disclosed, limiting accountability and progress.
Unlocking Transparency in Reporting: The Gender Pay Gap Calculator Tool
Transparency in reporting on the Gender Pay Gap ultimately reflects an organisation’s intention to address gender inequality and inequity. Promoting fair wages, equal opportunities, and access to education is the only solution to mitigate negative intergenerational impacts and foster a more equitable society. If your organisation doesn’t disclose their reporting, it’s important to ask why?
The NBI, in partnership with Genesis Analytics and the Southern Centre for Inequality Studies (SCIS) Wits University , has developed an online platform enabling businesses to calculate and visualise their Gender Pay Gap. The GPG online platform is a catalyst for change. By calculating their pay disparity, companies are displaying commitment to narrowing the gender pay gap. This endeavour represents a significant intervention in recognising and addressing the intricate economic and social factors that underpin gender pay disparities in South Africa.
Built and hosted by Impact Reporting, a UK-based social value measurement platform, the tool allows companies to upload anonymised staff wage data for analysis, revealing the size of the gap and identifying underlying factors contributing to income disparities.
disparities visible, companies signal a commitment to narrowing the gender pay gap and fostering a more equitable society.
Business Igniting Equity: NBI’s Strategy to Close the Gender Pay Gap
Transparent pay gap reporting is the first step in addressing historic and present-day workplace inequalities. Despite progressive policies in South Africa (including a globally lauded Constitution), we still face deep-rooted, systemic socialisation which affects women’s educational choices, labour market discrimination, and career interruptions during child-bearing life- stages (termed the ‘maternal penalty’).
The powerful insights shared throughout our GPG campaign in August, highlight the persistent gender pay gap in South Africa. Our video series has delved into these critical issues, starting with Contextualising the GPG to understand the factors that contribute to pay disparities in our society. We've also explored the Intergenerational Knock-on Effects of unequal pay and emphasised the vital role of Business Leadership and Workplace Culture in closing the gap and fostering inclusive environments. Additionally, we introduced the NBI's GPG Calculator to empower organisations with the means to measure and address their pay gaps.
Addressing the gender pay gap through equal pay is critical—but beyond transparent reporting and commitment to close the gap we also need firm commitments to advance gender equality in line with the UN's Sustainable Development Goals. Our video series calls on business leaders to recognise the long-term consequences of this issue and highlights the importance of collaborative efforts to build more equitable workplaces.
Let’s remember that our efforts to close the gender pay gap are not just about women's month — they are about shaping a future where all women can thrive. The NBI believes in the power of its member companies to be responsible social citizens, committed to building equitable workplaces and contributing to broader social transformation. The first step is to join other committed organisationsby utilising the NBI Gender-Pay-Gap Tool in order to end pay disparity.
#InternationalEqualPayDay #PayEquity
Companies interested in learning more about the Transformation and Equity pathway and the Gender-Pay-Gap Calculator Tool are encouraged to contact Zoe Mthimunye (Programme Manager: Social Transformation): [email protected], Thevan Naidoo (Project Manager: Social Transformation): [email protected] and Phumla I. Eneanya (Project Co-ordinator: Social Transformation): [email protected]