Exxaro Resources has rolled out employer-funded medical aid, gap cover and funeral benefits for lower-paid staff as part of its commitment to financial security and working to deliver a more equitable remuneration framework across the group.
In its environmental, social and governance report of 2025 released this week, Dr Phumla Mnganga, remuneration committee chair, said the group was making inroads in supporting employee wellness and financial wellbeing.
“Exxaro strengthened the total reward offering for lower paid employees through the introduction of employer-funded medical aid, gap cover and funeral benefits, reinforcing financial security and dignity at work while supporting a more equitable and sustainable remuneration framework across the group”.
Exxaro said it fully funded both benefits for all bargaining unit employees, with funeral cover applying to all employees except members of the Mineworkers Provident Fund, as the fund already provides this benefit. Also, as part of the group’s aim to expand financial inclusion, the benefits were made available to management and specialist employees at preferential, reduced rates, said Mnganga.
“In addition, medical aid cover was implemented for category A and B employees working in mines-in-closure operations, fully subsidised by the employer, thereby maintaining access to quality healthcare,” she said.
Exxaro, established in 2006, said these initiatives underscored the company’s commitment to financial inclusion, security and employee wellbeing. “They reflect a proactive approach to addressing the wage gap and strengthening the overall employee value proposition,” said Mnganga.
The amendments to the Companies Act passed by parliament will require JSE-listed companies to reveal the pay gap between the lowest paid workers and CEOs
Exxaro said it was committed to fair and responsible pay as the pay gap between the highest and lowest paid employees has increasingly come under scrutiny in South Africa — which is regarded as one of the world’s most unequal societies.
It said the wage gap is a “crucial” issue in South Africa, which is characterised by extreme inequality, poverty and unemployment.
To ensure fair pay, Exxaro was focused on levelling the playing fields by addressing inequality and wage gaps horizontally between race and gender and vertically between lower-paid employees and executives.“Our wage gap and fair pay principles aim to address this issue and are rooted in our values and group remuneration principles: consistent, fair, equitable and market-related remuneration,” it said.
The amendments to the Companies Act passed by parliament will require JSE-listed companies to reveal the pay gap between the lowest paid workers and CEOs.
Exxaro said it will continue to refine its analytical and governance framework in 2026, to ensure it is ready to comply with these requirements once the final regulatory framework and implementation timelines are confirmed.
A year earlier, Exxaro joined the Living Wage South Africa Network, enabling the group to participate in national research and dialogue on credible living wage benchmarks. “The network’s R15,000 net monthly benchmark is currently used as an external contextual reference, rather than a formal policy threshold, recognising that further research is required to develop a consistent methodology for converting employer-funded benefits into a comparable living wage measure,” it said.
The group also made tweaks to its executive remuneration framework, including the introduction of the deferred bonus scheme and changes to incentive performance measures.
Manganese, a key ingredient in steel making, is increasingly important in battery and renewable energy technologies, making it a key mineral in South Africa’s industrial and energy transition
In terms of salary increases in 2025, CEO Ben Magara and FD Riaan Koppeschaar received salary increases of 4.47%, while the average increases for executive level and management and specialist level employees was 4.22% effective from April 1 2026. Salaries for bargaining unit employees increase by 7% effective from July 1 2026, in line with the remuneration policy.
Magara, who was appointed in April, received a total remuneration of R18.7m, Koppeschaar received R22.1m.
Exxaro, which owns South Africa’s largest remaining coal reserves, ended December 2025 with a higher market cap at R61bn from R55bn a year earlier, and produced 39.9-million tonnes or coal from its mines.
It reported higher revenue, up by 3% to R41.8bn, while headline earnings a share were up 8% while the group’s total dividends amounted to R6.3bn, marking Exxaro’s 46th consecutive dividend since listing on the JSE in 2006.
Exxaro become a significant manganese player after the acquisition of manganese assets from Ntsimbintle and OM Holdings for R10.6bn in 2025. The acquisition of assets, including the Tshipi Borwa Mine in Kalahari Manganese Field in the Northern Cape, marked the diversification from coal into manganese,which is regarded as an energy transition metal.
Manganese, a key ingredient in steel making, is increasingly important in battery and renewable energy technologies, making it a key mineral in South Africa’s industrial and energy transition.
Exxaro, which employs 21,297 staff, including 6,742 permanent employees and 14,555 contractors, made a total tax contribution of R4.4bn in 2025.
It said it was monitoring the coal mine dust class action litigation filed in November 2023.
Business Times
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