Santam, South Africa’s largest short-term insurer, joins Old Mutual in establishing a minimum wage of R15,000 per month, prompting other financial services companies to reconsider their minimum wages.
- Santam’s minimum wage increased to R180,000 annually by September, aligning with the principle of not paying employees (permanent, non-commission earning) below the accepted living wage.
- The financial services industry lacks a sectoral minimum wage, but Santam has taken a proactive approach to address fair pay and competitiveness.
- Old Mutual had previously set its minimum wage at R15,000 per month, indicating that R15,000 is becoming the unofficial minimum wage in the competitive financial industry facing a skills shortage.
- In addition to the minimum wage adjustment, Old Mutual introduced an inclusive parental leave policy, offering employees a minimum of four months of fully paid parental leave.
- Santam, valued at approximately R35 billion on the JSE, employs a workforce of 6,472, making it one of the largest employers in the insurance industry.
- Santam’s refreshed strategy includes a new omnichannel operating model and the restructuring of its Commercial and Personal multichannel business into three units: Client Solutions, Broker Solutions, and Partner Solutions.