South Africa’s Capitec Bank has restructured its pay system to hold on to skilled professionals in the competitive financial sector.
Most employees now earn significantly more than they did three years ago, and the bank isn’t hiding its intentions; it wants to attract and retain the best minds.
A breakdown of the 2024 remuneration report reveals that over 60% of Capitec’s workforce now earn between R250,000 and R500,000 annually—three times more than in 2021.
Employees earning below R180,000 have been reduced to a small 2%, mostly interns and new hires. The middle tier is vanishing, and the lower tier is almost gone. This is a deliberate change in workforce compensation.
We’re seeing a larger pattern emerge. Banks in South Africa are jostling for talent, and raising pay is their main weapon. Absa and Standard Bank have already raised minimum salaries for 2025.
Absa’s new floor is R250,000—an 8.7% jump from last year. Standard Bank isn’t far off, offering R258,390 as its new minimum wage. Unionised workers there also got an average 5.8% raise. It’s beyond staying competitive, but surviving with the talent.
“Fairness is reflected in the way that we structure pay for executives and higher earners. At this level, we manage fairness by a higher weighting of pay towards variable pay,” said Vusi Mahlangu, chair of the bank’s remuneration committee.
Capitec Bank is also pumping money into its tech arm. In 2024, the bank raised its IT salary budget by 28%—allocating R1.7 million per tech role. This investment has paid off.
Staff earning between R500,000 and R1.5 million now make up 17% of the workforce, up from 11% in 2021. Even more telling: 10% of employees now take home over R1 million a year.
The salary increases are backed by strong results. Net profit climbed 30% to R13.7 billion in 2024. Capitec’s aggressive expansion into business banking, insurance, and digital services is pulling in more affluent clients—those earning upwards of R50,000 monthly jumped by 27%.
On the trading floor, investors responded positively. Capitec’s shares rose by over 7% as of 08:30 GMT after the results were announced. The bank reported that headline earnings for the year ending February 28 hit R13.7 billion, up from R10.6 billion the previous year.
Net interest income, after accounting for credit impairments, grew 54% to R11.9 billion. Transaction and commission income went up by 17%, driven by increased activity in card and digital payments. The credit loss ratio fell to 7.5% from 8.7%, signalling better loan quality.
Leadership is also transitioning. After 25 years, CEO Gerrie Fourie is stepping down. His final pay package was R104.8 million, including R75 million in long-term incentives.
He still holds one million shares in the bank, currently valued at around R3.3 billion. Though stepping aside as CEO, Fourie will stay on as an adviser, focusing on Capitec’s international growth plans.
Meanwhile, internal promotions are rising. 63% of open positions were filled internally, and the resignation rate sits at 11.6%, well below the industry average of 15.6%. Capitec sees value in developing and keeping its people.
What we’re witnessing is beyond a shift in pay, it’s philosophy. Capitec Bank, once known for its focus on the mass market, is maturing into a more complex financial company.
It’s targeting higher-earning customers, investing in tech, and grooming leadership from within. The salary hikes are a tool—but they’re also a statement. The bank is evolving, and it’s taking its people with it.
