Absa announced on Tuesday that it will increase its minimum pay to more than R20,000 per month, effective 1 April 2025.
According to the group’s remuneration report for 2024, the minimum salary has been increased to R250,000 per annum.
Absa said this increase is up 8.7%, which is above the overall salary settlement for the bargaining unit.
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How much Absa employees were earning
The bank has 36 779 employees, 26 542 of whom are employed in South Africa, 10 037 by Absa Regional Operations (ARO), and the rest internationally.
“In 2024, we applied a minimum cost to company level of R230 000, which is higher than the national minimum and living wage and is competitive relative to the disclosed minimum cost to company levels in our banking peer group,” the bank said.
Before 1 April 2025, the lowest employee would earn R19,166.66.
“Our 2024/2025 salary review continued to prioritise lower-paid employees and those within that cohort.”
Absa’s staff costs for 2024 were R33 billion. Staff salaries were R26 billion, bonuses cost R3 billion, and training costs R524 million.
How much Absa CEO earns
The Companies Amendment Act, signed into law in July 2024, requires public and state-owned companies to disclose how much the executives, directors and ordinary employees get paid.
According to Absa’s financial results, its acting CEO, Charles Russon, earned an annual salary of R6 456 843.
He received a total remuneration of R35 472 245, which was divided between his salary, medical aid, retirement benefits costs, and other employee benefits.
The rest of the remuneration includes a cash award of R7 250,000 and a deferred share award of R6 250 000. He received R13 500 000 for total short-term incentives, while the face value of the long-term incentive award (on-target award) was R15 000 000.
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Standard Bank’s minimum wage
Standard Bank also revealed that it has increases its minimum salary, effective 1 March 2025.
“The minimum banking guaranteed package has also been increased to R258 390 per annum from R244 920,” read the group’s remuneration report.
It also said it experienced an average 5.8% increase in fixed pay for its unionised employees in South Africa.
Fixed remuneration also increased by 5.5% overall across the group, reflecting current inflation levels in the countries in which it operates.
The bank also applied a 3.9% average increase in cost-to-company packages for managers and executives in South Africa.
How much Standard Bank CEO earned
Sim Tshabalala, CEO of the bank, walked away with more than R89 million in remuneration.
Out of the R89 million, his annual salary cost the bank more than R10 million.
The remaining amount was shared between employer retirement contributions, benefits and allowances, cash incentives, deferred incentives, the Performance Reward Plan (PRP) and the Nominal dividend on PRP award vesting.
According to the bank’s financial results, the it spent R27 billion on staff salaries and wages and R1.5 billion on pension and other post-employment benefit costs.
Absa’s years of leadership instability
Absa has experienced years of leadership instability, which saw six interim and permanent CEOs since 2019.
The latest person to be appointed is Kenny Fihla. Fihla resigned as Standard Bank’s deputy CEO and will commence his duties as CEO and executive director of Absa Group and Absa Bank on 17 June 2025.
He is currently on garden leave until 13 June. Garden leave is a policy in which an employee who has resigned or is being let go is instructed to stay away from the workplace during their notice period.
Fihla will continue to receive his salary, but is restricted from performing job duties or accessing confidential company information.
He will forfeit at least R14.3 million in long-term incentives due to his resignation. However, he will still take home at least R50 million for the 2024 financial year.
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