What the EEA4 statement asks for, and how to use it to find and close unjustified pay gaps.
Every designated employer must submit an EEA4 Income Differential Statement with its EEA2 report by 15 January.
What it shows: total remuneration (fixed and variable) by occupational level, race and gender. It reveals whether pay differs between groups in the same level, and how wide the gap is between the highest and lowest paid.
Why it matters: section 27 of the Employment Equity Act requires employers to take measures to progressively reduce disproportionate income differentials. Separately, the Act prohibits unfair discrimination in pay: work of equal value must be paid equally, unless a fair reason such as seniority, performance or scarce skills justifies the difference.
How to do it well: use clean, complete payroll data that matches your EEA2 workforce profile; include all remuneration, not only basic salary; compare pay within each occupational level and job grade; and document the reasons for any differences.
Then act: where gaps cannot be justified, include measures to close them in your EE plan, such as pay reviews, job evaluation and grading, and transparent pay scales.
The EEA4 is not only a form. It is the clearest early warning you have of an equal pay claim.
This article is general information, not legal advice for your specific situation. Speak to a MetaCo consultant about your organisation.