The South African tech CEO who gets a R700,000 allowance from the government

The CEO of South Africa’s Technology Innovation Agency receives a R700,000 allowance from the government each year, on top of a R2.43 million salary.

Science, Technology and Innovation Minister Blade Nzimande recently revealed these figures in response to a Parliamentary question from DA MP Angel Khanyile. 

Khanyile asked the minister for the full details of the current annual remuneration packages received by the CEOs or most senior officials at each state-owned enterprise that reports to him.

In his response, Nzimande provided the total remuneration package, including basic salary, allowances, benefits, and bonuses, that these leaders receive each year.

Eight state-owned enterprises report to the Department of Science, Technology and Innovation (DSI), and all of their CEOs earn high salaries.

The highest-paid official on the list heads up the Council for Scientific and Industrial Research (CSIR) and receives an annual remuneration package of R6.92 million.

This figure includes the official’s basic salary of R5.34 million, R34,000 allowance and benefits, and an annual performance bonus.

In the 2023/24 fiscal year, this official received a performance bonus of R1.42 million and, in the 2024/25 fiscal year, a bonus of R867,000.

The CSIR is a scientific and technology research organisation that researches and develops technologies to accelerate socioeconomic prosperity in South Africa.

The organisation plays a key role in supporting the public and private sectors through directed research that is aligned with the country’s priorities, the organisation’s mandate, and its science, engineering, and technology competencies.

It is one of the few public entities in the country that has consistently achieved clean audits year on year and has run at a surplus for at least the past five fiscal years.

The second-highest paid official on Nzimande’s list heads up the National Research Foundation and earns an annual remuneration package of R4.54 million.

This official receives a basic salary of R4.03 million and R30,000 in allowance and benefits.

The CEO with the highest allowance and benefits package among the DSI’s state-owned enterprises leads the Technology Innovation Agency (TIA) and receives an annual remuneration package of R2.65 million.

This includes a R2.43 million basic salary, and a R700,000 allowance and benefits package. In addition, the official received a R361,000 performance bonus in 2023/24 and a R247,000 bonus in 2024/25.

In the 2023/24 fiscal year, the TIA swung from a surplus to a deficit and received a financially unqualified audit outcome.

More remuneration disclosures

In his response to the Parliamentary question, Nzimande also noted that only half of these officials’ remuneration packages align with the prescribed limits set out in the Department of Public Service and Administration’s (DPSA) remuneration guidelines.

These guidelines aim to ensure fairness, equity and sustainability in the payment of public service employees.

Simply put, the DPSA’s remuneration guidelines provide norms and standards for the remuneration of public officials.

However, in some instances, a public official’s remuneration package may not align with the DPSA’s guidelines.

For example, if an official is a political appointment, like a minister, or specialises in a specific or scarce skill.

Additionally, some state-owned enterprises operate under their own remuneration frameworks, which are therefore not governed by the Public Service Act.