Every now and then, a corporate decision emerges from the financial fog that feels inspired. Absa’s decision to raise the minimum wage to a commendable R20,000 a month is one of those rare instances — a move that prioritises not just the optics but substance.
For context, this increase means the base annual salary of R250,000 — a number that might sound paltry in the boardroom but can fundamentally later the lives of many employees. Particularly in SA, where “black tax” is more than a phrase, this adjustment acknowledges an often-ignored reality.
The move reflects a deep understanding of millions of South Africans, many of whom are first-generation university graduates shouldering the financial black tax — the financial support provided to extended families scarred by the legacy of apartheid.
Fair compensation is not charity. It is enlightened self-interest. For one thing, it fosters loyalty, boosts morale and ultimately boosts productivity. For another, competitive pay is a bulwark against brain drain in an increasingly demanding labour market.
Of course, Absa isn’t alone in this. Standard Bank, Santam, Old Mutual and others are equally deserving of praise. One should celebrate while hoping, maybe even demanding, for others to follow suit. Here’s to raising the bar. Or, as some might say, finally realising it exists.
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