Eskom’s latest annual reports indicate that the average yearly salary for its employees climbed from R72,133 in 1994 to R1.165 million projected for 2026.
In the wake of the Companies Amendment Act becoming effective on May 22, 2026, South Africans will soon gain a clearer understanding of Eskom’s employee compensation structure.
These changes were announced in the National Government Gazette and sanctioned by President Cyril Ramaphosa.
This amendment introduced extensive alterations to corporate governance, particularly concerning employee compensation, mandating greater transparency regarding remuneration.
The new legislation compels public sector companies to provide comprehensive background narratives and an implementation report along with their approved remuneration policies.
Among other details, this implementation report will disclose information that Eskom previously left out of its integrated annual reports and other publicly available documents, which include:
- The total compensation of both the highest-paid and lowest-paid workers.
- The average and median total compensation of the entire workforce.
- A remuneration gap ratio, highlighting the difference between the total compensation of the top 5% of earners and the bottom 5%.
Furthermore, state-owned enterprises must include the total remuneration of each director and prescribed officer in their reports.
Currently, the only remuneration data Eskom reveals at the individual employee level in its integrated annual report pertains to these high-ranking positions.
In contrast, several other state-owned entities provide much more extensive data regarding employee compensation than Eskom did before the amendments were enacted.
Historically, Eskom shared only limited information about its employee remuneration, mainly encompassing total employee costs and the overall number of staff.
The number of Eskom employees has varied since 1994 when it reported having 39,760 employees. After that year, the total consistently fell until it reached 31,548 in 2006.
At that time, the utility was well managed, providing consistent and affordable electricity to South Africans.
However, a recruitment campaign launched over the next eight years, aimed at fulfilling Affirmative Action objectives, saw the workforce swell from 31,548 to 46,919.
Taxpayers will soon see who benefits the most from Eskom salary increases and bonuses
<pThe workforce grew significantly, and by 2018, Eskom employed 48,628 individuals, marking a peak in its employment history. Despite this growth, it failed to prevent the looming load-shedding crisis facing the nation.
Hiring ceased, and layoffs occurred during the tenure of CEO André de Ruyter, resulting in a reduction of staff to 39,601.
As de Ruyter departed and a new board led by chairman Mteto Nyati took charge, the workforce began to expand once more.
According to a report by Newsday published, Eskom concluded the 2026 financial year with 43,274 employees, the highest count in five years.
This increase in personnel coincided with a sharp rise in the average salary per employee, attributed to substantial salary hikes and bonuses instituted in recent years.
Nyati highlighted that prior management had imposed a five-year salary freeze and halted performance-based incentives.
He noted that such actions were demoralizing and unfair, impacting all employees regardless of their performance level or role in critical maintenance.
The board under Nyati repealed the salary freeze, instituted raises, and reinstated performance and production bonuses.
This shift caused Eskom’s salary expenditure to jump from R32.3 billion in 2023 to R50.4 billion in 2026, marking the most significant increase in the utility’s history.
Consequently, Eskom’s average salary package rose rapidly from R816,000 to R1.165 million in just three years.
While the average salary of R1.165 million is noteworthy, it may not accurately reflect the earnings distribution among employees. Adjustments made under the Companies Amendment Act will facilitate greater transparency.
This will be the first time Eskom must disclose the median salary alongside the average. If the median is significantly lower than R1.165 million, it would suggest that higher salaries are concentrated among a select few.
Conversely, if the median closely matches the average, it would validate the board’s assertions that increased compensation is widespread across all operational levels.
Ultimately, South Africa’s taxpayers will soon be informed not only about Eskom’s overall salary expenditures but also about the specific beneficiaries of these funds.
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