Old Mutual’s minimum salary now R180,000 per year

Old Mutual established a minimum annual total guaranteed pay (TGP) of R180 000 for South African-based employees, which kicked in on 1 April 2023.

The minimal salary increase followed work by Old Mutual’s remuneration committee on fair and responsible pay philosophy and principles.

“We focused on the development of key metrics to track and monitor progress against these principles,” committee chairperson Itumeleng Kgaboesele said.

He said Old Mutual had assessed pay differentials through detailed analysis of data and insights to inform decisions.

“We agreed that we would strengthen our investment in lower-level employees and our competitive pay position effective 1 April 2023,” he said.

Apart from hiking the minimum pay to R180,000 per year, or R15,000 per month, it also implemented a policy change to ensure employees are appointed at the minimum paylines.

This includes a commitment to adjust all current South African employees below the minimum to the minimum of their respective paylines by 1 April 2023.

“For employees in countries outside of South Africa and sales employees, we continue to ensure that pay is fair and equitable and that actionable plans are in place to manage pay,” Kgaboesele said.

Old Mutual’s minimum salary of R15,000 per month aligns with South Africa’s average take-home pay.

BankservAfrica Take-home Pay Index (BPTI)’s shows that the average nominal take-home pay in March was R15,321.