The remuneration provisions of the Companies Amendment Act 16 of 2024 are now in effect, bringing public and state-owned companies into a new phase of remuneration disclosure, shareholder oversight and pay transparency.
“This is no longer a future governance consideration. The remuneration provisions are now law, and organisations will need to explain not only what they pay, but how pay decisions are governed and how pay gaps are being understood,” says Lindiwe Sebesho, Managing Director of Remchannel.
The changes come as Remchannel’s April 2026 Salary and Wage Movements Survey shows that while 85.7% of organisations conduct annual fair pay analyses, only 26.2% have a formal pay transparency policy, and 51.3% of employees still have no visibility of pay bands or ranges.
Pay transparency is now part of the governance landscape
As of 22 May 2026, Sections 30A and 30B of the Companies Amendment Act 16 of 2024 commenced, requiring public and state-owned companies to prepare and present a remuneration policy for shareholder approval, as well as an annual remuneration report that includes mandatory pay gap disclosures.
“The Companies Amendment Act requires these companies to prepare a remuneration policy and present it for shareholder approval by ordinary resolution at the annual general meeting every three years. Any material changes to the policy must also be approved before implementation,” she says.
“Companies must also present an annual remuneration report at every AGM for shareholder approval. This report must include mandatory pay gap disclosures. The two-strike rule also applies, meaning remuneration committee members face re-election consequences if the implementation report is voted down in two consecutive years.”
Sebesho says the changes formalise a broader shift towards more transparent remuneration governance.
“Pay transparency changes the relationship between boards, remuneration committees, shareholders, employees and the public. It places greater emphasis on credible data, clear governance and the ability to communicate remuneration decisions in context,” she says.
Disclosure needs context
Sebesho says the commencement of the remuneration provisions marks an important moment for remuneration governance in South Africa.
“The Companies Act is pushing organisations towards a more transparent and socially responsible approach to pay. But the value of disclosure lies not only in reporting the numbers. It lies in helping stakeholders understand how remuneration decisions are made, how gaps are being addressed, and how pay practices support fairness, trust and long-term sustainability,” concludes Sebesho.