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Can Potential Employers Request Previous Salary Slips?

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Can Potential Employers Request Previous Salary Slips?

In South Africa, providing your last three salary slips isn't optional—it's standard practice. Understanding this reality helps you navigate the process strategically.

Every recruiter and employer in South Africa, from SMEs to enterprise corporations, will request your three most recent salary slips before making an offer. This isn't about discrimination or unfair practices—it's how the South African job market operates, driven by economic realities and standardized salary increase practices.

All too often we interview and speak to potential job seekers who are not prepared to share their current salary or salary slips with us. The problem with this approach is that 99% of South African businesses—small, medium, and large—have been requesting three most recent salary slips as part of their hiring strategy over the last two decades. We find ourselves in a position to move on to the next cooperative candidate when we encounter non-cooperative candidates, as 90% of potential job seekers are cooperative and willing to be transparent with the requested information.

At SkillzPage, we've guided thousands of IT, Engineering, and Finance professionals through 20+ years of recruitment. Understanding why salary slips are essential and how to leverage them strategically separates successful candidates from those who struggle with unrealistic expectations. Transparency and cooperation in this process opens doors—resistance closes them.

Here's your complete guide to navigating salary history requests in the South African job market.


Why salary slips are standard practice in South Africa

South African employers typically offer salary increases of 10-15%, which is considered market-related movement between companies.

Market dynamics that drive this practice:

  • South African employers forecasted pay increases of 6.1% for 2024, but actual increases consistently fall below inflation rates
  • Job change increases typically range from 10-15% above current salary
  • Annual salary increases for existing employees remain constrained by economic pressures
  • Economic constraints limit dramatic salary jumps between positions

Standard recruitment process:

  • All employers from SME to enterprise level request three recent payslips
  • Salary verification occurs before offer formulation, not after
  • Salary growth occurs gradually over time through job changes and annual increases
  • Budget planning requires accurate current salary baselines

After 20+ years placing professionals across South Africa, we've learned that employers use salary history not to discriminate, but to ensure competitive offers that align with market realities and budget constraints.


Employer perspective on salary verification

Employers request salary slips to "gauge market value, ensure fair compensation, and verify job titles, start dates, and existing benefits"

Companies want to "avoid dissatisfaction from compensation disparities and provide a basis for salary benchmarking"

Practical business considerations:

  • Salary budgets are planned annually with limited flexibility
  • 70% of organizations attribute inflationary pressure as the reason for salary increases
  • 44% respond that increases are due to competitive labor market

Market-related movement between companies:

  • 10-15% increase is considered standard and competitive
  • Higher increases require exceptional circumstances or skills shortages
  • Budget constraints limit dramatic salary jumps

Understanding your payslip "can help you negotiate better benefits or higher salaries, especially if you're at the top end of your market value"


Legal framework supporting salary history requests

Current legal position:

  • South African employment law does not specifically regulate or restrict the type of information companies can request during the hiring process
  • Unlike several US states and EU developments, there are no salary history bans in South Africa
  • Companies have legal authority to request payslips as part of their recruitment verification process
  • No statutory protection exists for candidates who refuse to provide salary information

Business justification:

  • Employers use salary history to assess whether candidate expectations align with allocated position budgets
  • Salary verification helps companies formulate competitive offers within the standard 10-15% increase range
  • Budget planning requires accurate baseline information to ensure offers are both attractive and financially viable
  • This approach helps avoid costly salary mismatches and failed negotiations.

    Employee rights regarding salary information

    • While employees can discuss their own compensation, this doesn't prevent employers from requesting verification
    • Honesty in disclosing salary history builds trust and transparency with potential employers. 
    • Accurate information can lead to more effective negotiations and a fair compensation package.

    Essential documents to organize

    Ensure you "have a solid understanding of your current remuneration package and structure" including all benefits and perks. You'll need to provide:

    • Three most recent consecutive payslips
    • Total cost-to-company breakdown including benefits
    • Annual bonus and incentive structures
    • Any salary increases received in past 24 months

    If you're currently underpaid

    The loyal employee exception:

    We regularly encounter professionals with excellent qualifications and 10+ years of relevant experience who've remained with a single employer throughout their careers. While company loyalty is admirable, these candidates often earn significantly less than market rates because they missed the regular 10-15% increases that come with strategic job changes every 3-4 years.

    The underpayment reality:

    These loyal employees typically received modest 3-5% annual increases—if any—resulting in salaries that lag market rates by 30-50% or more. When we compare their compensation to professionals with similar experience who changed jobs strategically, the gap is substantial and unfair.

    SkillzPage's strategic intervention:

    This is where specialist recruitment agencies add critical value. We negotiate market-related salaries that reflect true worth, not employment history. For severely underpaid professionals, the standard 10-15% increase rule gets set aside in favor of proper market positioning—sometimes requiring 25-40% adjustments to achieve fair compensation.

    When exception rules apply:

    If you've been with one employer for many years and suspect you're underpaid, we'll benchmark your true market value and negotiate accordingly. Your loyalty shouldn't be financially penalized.


    Well-compensated professionals

    • Demonstrate continued value and growth potential
    • Show career progression trajectory
    • Emphasize qualifications in relation to the role you're being considered for, and skills that justify current level or higher

    When career changes justify higher increases

    Industry switching considerations:

    Moving between industries may justify adjusted expectations, particularly when transitioning into higher-paying sectors or where your transferable skills command premium value.

    Skills shortage leverage:

    Severe skills shortages in specialized areas allow you to dictate salary terms rather than accept standard increases. When talent is scarce, market dynamics shift dramatically in your favor.

    Expanded role responsibilities:

    Taking on dual roles where you'll handle responsibilities traditionally split between multiple positions justifies significant compensation increases—often well beyond the 10-15% standard.

    Management progression premium:

    Stepping into management roles with expanded responsibilities, team leadership, and P&L accountability commands higher increases due to added complexity and business impact.

    Contract vs. permanent positioning:

    Moving from permanent to contracting positions involves higher risk but typically delivers 30-50% compensation increases to offset lack of benefits and job security.

    Skills shortage negotiation power:

    When your expertise is in critical demand, traditional salary increase rules don't apply. Some of these roles within the IT space include Devops Engineers, Software Architects, Cybersecurity specialists, Data scientists, and specialized engineers often secure 25-40% increases due to market scarcity.


    Global context: How South Africa compares

    • In the United States many states have salary history bans, with California and New York having strongest laws prohibiting requests.
    • In the EU Pay Transparency Directive suggests future restrictions on salary history requests.
    • The Canadian approach is some provinces like Ontario prohibit employers from asking about past compensation.

    Why South Africa maintains different practices?

    • Limited salary budget flexibility due to economic conditions.
    • Women earn approximately 15% to 30% less than men, indicating systemic pay challenges.
    • Standard increase practices help maintain market stability.
    • South African recruitment practices reflect our local economic realities, not international trends

    How specialist recruiters add value

    • Experienced recruiters use extensive market knowledge to negotiate better outcomes"
    • Salary benchmarking expertise allows recruitment specialists understand market rates across industries and can position candidates competitively.
    • Experienced recruiters can navigate salary discussions while maintaining positive employer relationships.

    SkillzPage's strategic approach

    • We have 20+ years of market experience and understand realistic salary expectations and help candidates position themselves appropriately.
    • Deep knowledge of IT, Engineering, and Finance markets enables strategic salary guidance.
    • Long-term client relationships allow us to understand budget constraints and negotiation flexibility.
    • Transparency on all acounts, we prefer an open and transparent aproach with both candidates and employers. 

      Common mistakes that limit salary negotiation success

      • Unrealistic expectations, dramatic salary increase demands, expecting 30-50% increases without exceptional circumstances or skills shortages.
      • Not recognizing that average salary increases consistently sit well below inflation rate.
      • Failing to understand sector-specific salary constraints and practices
      • Insufficient knowledge of realistic salary ranges for target positions
      • Inability to justify requested salary increases with concrete achievements or skills

      Understand the market, don't fight it!

      The most successful professionals work within established practices while positioning themselves strategically for maximum outcomes. By understanding why salary history is essential and preparing comprehensive documentation, you can achieve competitive compensation while maintaining professional relationships.

      Contact SkillzPage for salary strategy guidance:

      Email: info@skillzpage.com

      Website: www.skillzpage.com

      Specialties: IT, Engineering, Finance recruitment and compensation strategy

      Your career advancement depends on strategic salary positioning that reflects market realities and your true value.


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