Sasol Integrated Report 2022 - Book - Page 67
INTRODUCTION | ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
DELIVERING
GOVERNANCE AND REWARDS
ADMINISTRATION
REMUNERATION REPORT (CONTINUED)
Overview of remuneration elements, strategic intent of each component and decisions taken in 2022
Fixed pay –
Policy and strategic intent
Fixed pay –
application
Outcomes
2022
Benefits and allowances –
Policy and strategic intent
Benefits and allowances –
application
Base salary or Total Guaranteed
Package (TGP) depending
on location.
Employees in countries other than
South Africa and employees in the
South African bargaining sectors
are paid a base salary rather than
a TGP.
Following two years of no
increases, for Senior Management
and above, market adjustments
were approved effective
1 October 2021. We carried out
an executive remuneration
benchmarking exercise and
implemented market adjustments
where appropriate and will
continue in 2023 as necessary.
Benefits include, but are not
limited to, membership of a
retirement plan, healthcare and
risk cover to which contributions
are made by both Sasol and the
employee.
Benefits are offered for retirement,
for reasons of sickness, disability
or death. Beneficiaries of
employees who pass away while
in service receive an additional
insurance pay-out. The quantum
depends on which retirement plan
they belonged to.
In South Africa the cost of
increases, which include market
adjustments, for staff outside
of collective bargaining units
was 4,31% of the South African
salary bill.
A number of special allowances
including housing, cost of living,
home-leave and child education
are included in the Group’s
Expatriate Policy.
Broad pay bands set with reference
to location and sector median
benchmarks that reflect the
complexity, scope and scale of our
business to ensure that we attract
and retain the employees required
to drive the Group’s key objectives.
The Committee approves the
cost of annual increases after
considering market and economic
data as well as affordability.
Mandates are provided for salary
increase negotiations with
recognised trade unions and
works councils.
STRATEGIC INTENT:
• Attraction and retention of
key employees.
• Internal equity and external
competitiveness.
• Affordability.
• Recognition of competence and/
or individual performance.
In South Africa, the minimum wage
we pay is compared with the living
wage for a family as provided by
Trading Economics.
The total employment cost of
salaries, benefits, allowances
and incentives for the lowest
level mining employee with
three dependants on the
medical scheme is R304 814,00
per annum.
Salaries are paid monthly to all
employees except for those in
the United States (US) who receive
bi-weekly payments.
Employees who are promoted are
considered for salary adjustments
as justified.
For employees outside the
collective bargaining sectors,
annual increases are processed
with effect from 1 October.
Employees in collective bargaining
structures received increases
of between 4% – 4,5% as well
as adjustments to allowances.
International increase costs were
in line with forecast inflation and
applicable market progression
practices.
Due to the sharp increase in global
inflation, salary increases in 2023,
will be higher than in previous
years.
Allowances are paid in terms
of statutory compliance or
as are applicable in a sector/
jurisdiction.
STRATEGIC INTENT:
• Compliance with legislation or
co-determination agreements.
• Strengthening of the Employee
Value Proposition where
benefits are offered as a general
market practice.
• To protect cost of living for
employees on expatriate
assignments.
Allowances are linked to roles
within specific locations and are
paid together with salaries.
Expatriate benefits and allowances
are offered in terms of country
and assignment policies.
Employee wellbeing is the crux of
labour stability. Sasol continues
to roll out psychosocial, physical
and safety culture interventions
especially during COVID-19 on
stress and related issues such as
online meeting fatigue and dealing
with the bereavement of loved
ones. Any stress experienced due
to returning to the workplace also
received the required empathy
and employees are referred to the
Employee Assistance Programme
(EAP) as appropriate.
Outcomes 2022
Sasol uses different options to
provide healthcare to employees
and their families by means
of medical insurance and/or
public health plans, as well as
additional insurance in countries
as appropriate.
All employees have healthcare
cover in the event they are
infected with COVID-19.
Sasol continues to use special
leave categories to accommodate
lockdown periods in various
jurisdictions. No employees
were asked to take unpaid leave
because of lockdowns or the
shutdown of operations due
to COVID-19.
The Committee confirmed
that in all countries where
employees participate in
private retirement funds, the
governance of these funds
meets fiduciary requirements,
and all defined benefit fund
liabilities are appropriately
detailed in Sasol’s Statement
of Financial Position.
AFS
Employees in collective bargaining
structures receive across-theboard increases with effect from
1 July or 1 October.
or more detail refer to our Annual
F
Financial Statements available on
our website, www.sasol.com
With the exception of Group
Executives, employees who
agreed to a salary sacrifice as
well as to have their employer
contribution to retirement funds
suspended in 2021, received a
refund related to the sacrifice
in 2022.
Outside South Africa, annual
salary increases are also
negotiated with trade unions
and/or works councils in
the US, Germany, Italy and
Mozambique.
SASOL INTEGRATED REPORT 2022
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