Sasol Integrated Report 2024 - Book - Page 148
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
PART III: SECTION B – KEY PRINCIPLES FROM OUR REMUNERATION POLICY APPLICABLE TO THE WIDER WORKFORCE
BELOW THE GEC
We herewith provide details of the key remuneration principles which apply to permanent and non-permanent employees below the GEC, to inform specifically the pay gap ratios
disclosed in the Implementation Report.
REMUNERATION – SECTION B
Sasol’s job architecture follows a broad banded approach with seven broad bands (excluding enterprise
leadership or the GEC).
Location specific, roles in the first three to five bands are covered by collective bargaining or codetermination agreements with our respective labour partners. Where possible, we prefer multi-year
agreements, to support labour stability. These agreements include the minimum salaries, annual salary
increases, in some cases allowances, benefits and incentives.
Employees have the opportunity to participate in approved health insurance, risk insurance and
retirement funds. We consider our benefit structures important in the quantification of our total
employee value proposition. The Committee reviews the status of all benefit funds annually.
Specific benefits are in place for employees who lose their lives in the course of duty and Sasol aims
to support these employees and their families as best as possible.
Supervisory, Operational and General workers
Depending on the location and the type of role, permanent employees may be included in collective
bargaining agreements.
All of our employees receive a market related base salary, are required to participate in our benefit
structures, and receive allowances either in line with legislation, or sectoral determinations.
Our Mining underground employees participate in a Mining productivity bonus plan and other
employees participate in a short-term incentive plan.
Annually the Committee considers the entry level salaries paid to our employees to confirm that these
meet our fair pay principles and align with the living wage benchmarks. In South Africa, Sasol’s entry
level salaries are higher than the minimum wage determined in the sectoral agreements.
Non-financial benefits differ for every location and do not form part of these agreements; nor are
they disclosed or included in the disclosure of our lowest salaries.
Group Leadership, Leadership, Senior and Middle management
Remuneration principles for roles in these bands, are aligned with those for our GEC, with the exception
of a requirement for minimum shareholding requirements. The pay mix is reviewed annually, set as
appropriate for each role category approved by the Committee.
Salaries are benchmarked through the use of reputable survey houses in each of our locations with
reference to the market median. The annual increase costs are determined by considering the projected
market movement, inflation, and affordability and approved by the Committee.
The Group STI scorecard is applied in the calculation of short-term incentives and approved by the
Committee. Individual performance is a factor in the final STI calculation. Individual performance is
assessed on a regular basis as part of our high performance culture and is a multiplier in the variable pay
awards. The average IPF across different employee groups cannot exceed 100%.
At the discretion of the Committee, employees in these role categories are eligible for participation in
our long-term incentive plans, subject to the meeting of performance and time based vesting
conditions. Vesting periods vary from three to five years. Except in the case of death, there is no
accelerated vesting on the long-term incentives. Scarce and critical skills, retention requirements,
personal performance and competitive market positioning are considered when these awards are made.
The Malus and Clawback policy applies to all variable pay awards.
Non-permanent employees receive a basic salary and may participate in some benefits but are not
permitted to participate in our variable pay plans. These employees are typically employed under our
Learnership and Graduate recruitment plans and, in some cases, to fill in for periods of prolonged
absenteeism or increased requirement for manpower.
Fatality Penalty
In FY24, the Committee approved that the fatality penalty, subject to codetermination agreements, is
extended to all our employees. This means that there is a deduction of at least one percentage point from the
final short-term incentive score for every fatality. Further differentiation is in terms of the level of the
employee position, and the OME where the fatality occurred as indicated in the following table:
Standard penalty deducted
from the Group STI score
Level
Additional penalty* applied to
employees in the same entity
where the fatality occurred
Group Leadership and Leadership
1%
+2%
Senior management
1%
+1,5%
Middle management and lower
1%
+1%
* to a maximum of 20%
SHARE PURCHASE PLAN
EMPLOYEE WELLBEING
The Share Purchase Plan in South Africa is an important component of our employee value proposition.
It was established as a vehicle to encourage long-term savings and a route to own Sasol share units.
Monthly after tax payroll deductions fund the purchase of these share units which are matched by
the employer subject to the rules of the plan, up to a maximum of R7 200 per annum. The tax on
the matching units, is paid by the participant. For the cycle ending February 2024, there were
10 893 participants in the plan and the cost of the matched award was R70 981 677.
More details about our Wellbeing programme are included in the Sustainability Report. Depending on
the requirement of each of our locations, bespoke wellbeing programmes are implemented to enhance
the quality of life of our employees. In South Africa where we employ the largest workforce, the
wellbeing plan covers financial, emotional, physical and legal wellbeing offers. The Employee Wellbeing
programme is comprehensive and digitally enabled.
SASOL INTEGRATED REPORT 2024
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