Global Business Brief

Expected Wage Increases for 2024, in SA

South African employers are expected to increase pay by an average of 6.1% in 2024, according to a recent survey (as per BusinessTech). This is a slight decrease from the actual average rise in pay budgets made in 2023, which was 6.6%. The study found that companies surveyed are considering raising their compensation budgets in 2024 for two primary reasons: about 70% of the organizations attribute inflationary pressure as the reason, while nearly 44% responded that the increases are due to a competitive labour market, with companies aiming to attract and retain quality employees.

The forecast rise for 2024 is higher than the global average of a 5.0% pay raise predicted in 2024. The study also found that 59% of employers are looking to hire engineers, 56% are seeking IT professionals, and 48% are interested in recruiting more salespeople.

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Misrepresenting one’s qualifications is a serious offense that can have severe consequences

In South Africa, it is a criminal offense to falsely or fraudulently claim to hold a qualification or part-qualification registered on the National Qualifications Framework (NQF) or awarded by an education institution, skills development provider, or quality council. The National Qualifications Framework Amendment Act 12 of 2019 has implications not only for prospective employees and/or job seekers who misrepresent their qualifications but also for employers seeking to appoint such prospective employees or job seekers. The act provides that prospective employees and/or job seekers who are found to have misrepresented their qualifications may face possible jail time, a fine, or both. The amendments also introduce an obligation on employers to validate any qualification presented to them by ensuring that the qualification is registered on the national learners’ records database before appointing the prospective employee and/or job seeker. In circumstances where the qualification is not registered on the national learners’ records database, employers are required to verify the qualification with the South African Qualifications Authority.

The case of Thabi Leoka, who was appointed as a non-executive director at Netcare in 2021 despite a verification report commissioned by the company indicating that her highest qualification was a Master’s degree, highlights the importance of verifying the accuracy of the information provided by employees. Despite the verification report being at odds with Leoka’s CV, Netcare went on to tell shareholders and the public that she had a PhD. 

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