The matter of vertical income differentials becoming part of regulations has been coming for some time. The Gini co-efficient which measures inequality across entire countries by averaging the top and bottom 10% of earners respectively is the same formula used in the EEA4 and the principles and benchmarks should be equally applicable to the EEA4 in this context.

Employment Equity Reports are done and dusted for 2019 reporting period. However, employers are now left with the responsibility to close gaps arising from the data reported in the EEA4 below which require either:

o             Fully integrated and aligned remuneration policies; and/ or

o             Refreshed policies that address both the horizontal and vertical income gaps; and/ or

o             Advice to determine what an acceptable range of the vertical income multiple would be; and/ or

o             A full analysis of remuneration data to identify the areas of remuneration creating the vertical and horizontal gaps.


Contact Global Business Solutions now to provide advice on how to move forward and to include this as part of the EE plan.