Capitec Bank, South Africa’s largest commercial bank by customer base, has significantly adjusted its employee remuneration strategy to attract and retain top-tier talent amid intensifying competition in the financial services sector.
According to the bank’s 2024 remuneration report, a substantial shift has occurred in employee salary structures over the past three years. Notably, the number of employees earning between R250,000 ($13,268) and R500,000 ($26,536) annually has tripled, now comprising 62% of Capitec’s workforce.
This move aligns with broader trends among South African financial institutions. Other major banks, including Absa and Standard Bank, have also increased their minimum annual salaries to R250,000 and R258,390 ($13,731) respectively, reflecting a shared emphasis on retaining skilled professionals. All together, staff at Standard Bank also saw an average salary increase of 5.8%.
Capitec’s decision is in part a response to macroeconomic conditions. Payroll consultancy Axiomatic projects an average salary increase of 5.5% across South Africa in 2025, marginally outpacing inflation. The bank has dramatically reduced its reliance on lower-wage workers: the percentage of employees earning between R180,000 ($9,550) and R250,000 dropped from 61% in 2021 to 16% in 2024, while only 2% of staff now earn under R180,000, mostly interns or entry-level hires.
“Our approach to fairness is evident in how we structure executive pay,” said Vusi Mahlangu, Chair of Capitec’s Remuneration Committee. “At senior levels, a larger portion of compensation is linked to performance through variable pay.”
Capitec is also investing heavily in technology talent. The bank increased its IT salary budget by 28%, bringing the average annual tech salary to R1.7 million (about $90,200). As a result, the proportion of staff earning between R500,000 ($26,536) and R1.5 million ($79,600) has grown from 11% in 2021 to 17% in 2024. Today, 10% of Capitec’s employees earn more than R1 million ($53,000) annually.
These salary enhancements are supported by strong financial performance. In 2024, Capitec’s net profit rose by 30% to R13.7 billion ($728 million), driven by growth in business banking, insurance, and digital financial services. The bank is also attracting higher-income clients, with a 27% rise in customers earning over R50,000 ($2,650) per month.
Capitec continues to focus on internal growth, with 63% of roles filled through internal promotions. It also reported a voluntary resignation rate of 11.6%, well below the banking industry average of 15.6%, reflecting effective talent retention.
The announcement comes during a leadership transition. Gerrie Fourie, who has led Capitec for 25 years, is stepping down as Chief Executive Officer. In 2024, Fourie earned R104.8 million ($5.5 million), including R75 million ($3.9 million) in long-term incentives. He also holds one million Capitec shares, currently valued at approximately R3.3 billion ($175 million). Though stepping down as CEO, Fourie will continue advising the bank on its international expansion strategy.
