Absa has raised its minimum monthly pay to R20,833, positioning itself among South Africa’s leading banks in terms of fair remuneration. The bank, in its 2024 annual report, emphasised its commitment to ensuring equitable salaries across all markets where it operates. The latest increase brings the annual minimum salary to R250,000, an 8.7% rise from the previous year. This increase outpaces the overall wage adjustments for employees under the bank’s bargaining unit. Competitor Standard Bank has set its minimum annual pay at R258,000, while Investec maintains a similar threshold to Absa’s. Insurance firms, including Santam and Old Mutual, pay significantly lower at R15,000 per month, but Old Mutual has introduced progressive policies such as four months of fully paid parental leave.
Absa has also reaffirmed its commitment to monitoring remuneration fairness, ensuring that salaries align with race, gender, and job role considerations. The bank’s latest disclosure highlights that its highest-paid employees earn 129 times more than the lowest-paid, with most of their earnings derived from performance-based incentives. This comes amid broader concerns about executive pay disparities, particularly within major South African corporations. The bank’s acting CEO, Charles Russon, earned R6.9 million in fixed salary last year, with total remuneration reaching R34.4 million when including incentives. Absa recently appointed Kenny Fihla, Standard Bank’s deputy CEO, to take over as its new CEO from June 2025.
Despite strong financial growth, with a 10% rise in profits to R22.1 billion, Absa’s leadership did not receive a full payout due to underperformance in shareholder returns. The bank noted that while its stock performed well in late 2024, the overall three-year return was below expectations. A recent study by shareholder activism group Just Share revealed that wage gaps in South Africa remain stark, with CEOs in the retail and wholesale sectors earning nearly 600 times more than their lowest-paid workers. The ongoing debate around executive compensation versus worker wages continues to shape corporate pay structures across industries.