Salaries: plan to cap exorbitant pay on the cards

2012-06-29 00:00

ECONOMIC Development Minister Ebrahim Patel says a proposal to cap senior managers’ salaries is receiving attention.

Speaking at a business breakfast on the sidelines of the ANC’s policy conference, he said he had invited the chairperson of the UK High Pay Commission to brief his team about what mechanisms were being used to cap salaries in Britain.

Team members had also looked at what was happening in China and were applying their mindS to what model should be used.

Exorbitant salaries of chief executive officers of parastatals and highly paid senior managers in government have long been an issue of contention, Patel said, and there was a need to build a sense of shared benefit for all South Africans.

A proposed cap on salaries first emerged in 2010 in the government’s new growth path policy. It proposed a limit on salaries and bonuses for senior managers and executives earning more than R550 000 a year.

Patel said the challenge for the ANC was to deliver on its election promise. “We cannot continue to grow without accelerating efforts to address inequality, especially through the creation of work opportunities.”

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