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BusinessLive reports that Santam, SA’s largest short-term insurer, has joined Old Mutual in setting its minimum wage at R15,000 per month, putting pressure on other financial services companies to reconsider their minimum wages.
The company, majority owned by insurance major Sanlam, said in its annual report that the minimum wage had increased to R180,000 annually by September. Norah Sehunoe, executive head of HR, pointed out that the financial services industry lacked a sectoral minimum wage as it was not viewed as a vulnerable sector. “Therefore, the financial services minimum wage equates to the national minimum wage of R4,350 per month (depending on the number of hours worked). Santam however decided effective September 1 2023 that it would formally adopt the principle of not paying employees (permanent, noncommission earning) below the accepted living wage of R15,000 per month or R180,000 per annum, which equates to three times the legislated minimum wage,” Sehunoe indicated. She added: “Santam’s remuneration policy has ensured that we remain competitive against market salaries, so as a result of this policy we had a very low number of employees below the living wage. However, as part of our commitment to fair pay, we formally adopted the principle of paying a living wage at minimum.” It was reported last year that Santam’s rival Old Mutual had set its minimum wage at R15,000 per month with effect from April. With Santam now having increased its minimum wage, it seems R15,000 is the unofficial minimum wage in the lucrative but highly competitive financial industry facing a skills crunch.
- Read the full original of the report in the above regard by Kabelo Khumalo at BusinessLive
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