For the “average” South African, government’s latest plan, the New Growth Plan (NGP), tried to do again, what they have tried to do repeatedly without success (create jobs). NGP would have been a yawn…..save for this Stone Age proposal:
Cap pay and bonuses for senior managers and executives that earn over R 550 000 per annum
Now that I have your attention, can you imagine future conversations between employers and talent?
“We want to offer you R800K for this job, but we can’t break the law. Government has limited your pay to just R550K. Our hands are tied”
“Congratulations on accepting the position of Marketing Executive. In terms of the NGP, your contribution to this country will include pay caps, limited performance increases and higher taxes. Enjoy the good life”
“In terms of NGP regulation 100560, all senior managers are granted a 0.5% increase for meeting expectations and 0.55% for exceeding expectations, subject to your remuneration not exceeding R550K. It pays to perform in this job.”
“We really want to pay you more, but you’ve hit the cap for this year”
If this proposal came to fruition, how would it affect your career, job and future plans?
P.S Don’t forget about those toll fees sinking the NGP and future jobs, here is an interesting article.