MJ Maleka , TB Skosana, PM Tladi, C Mayavo
Abstract
This research analysed remuneration for low-income South African government employees. Our analysis of prior literature determined that compensation analysis was a new field of research and that similar research was rare. Some of these studies were conducted internationally, so this study has addressed the gap. The international literature also shows that human resource managers lack analytical skills in salary analysis. This study offers HRM practitioners the competency means to measure the relationship between the post levels and remuneration and the vertical inequality using the Lorenz curve and Gini coefficient. Moreover, the analysis utilised secondary data from employees at levels 1-10, including non-management low-income employees. The data were analysed using Excel, revealing that the monthly income of low-income employees ranged from R12,007 to R41,344.40. The lowest-income employees earn a living wage; previous studies revealed that employees are generally satisfied and engaged when earning R12,000 and above. Furthermore, the kurtosis and skewness values involving the salary analysis ranged from -1 to +1, indicating that the data were normally distributed. The findings of the regression (β = 3147.485, p < 0.05) and Pearson correlation (r = 0.96) depicted a positive correlation between the post level and monthly earnings, while the R-squared results showed that the post level contributions accounted for 92% of the employee’s remuneration. The Lorenz curve closely approximated the equality line, while the Gini coefficient was 0.24. Since the adjusted salary exceeded the consumer price index, the purchasing power of low-income workers would not be reduced. However, a higher wage bill can present a negative impact on other government activities. The study concludes with recommendations for managers and future research.