- South Africa’s state owned energy utility earns second consecutive Top Employer certification despite rising employee costs.
- High average salaries scrutinised against heavy debt burden and taxpayer funded support.
Eskom has been certified as a Top Employer for 2026 for the second year in a row, highlighting its focus on workplace culture and human capital practices. While the recognition places the power utility among leading employers globally, it has also renewed debate around remuneration levels at a time when Eskom remains heavily reliant on taxpayer support and continues to carry a substantial debt burden.
The Top Employers Certification is awarded following an independent and data driven assessment of people practices, including employee development and organisational leadership. Eskom leadership has positioned the certification as evidence of progress in building a sustainable and future ready organisation.
Eskom Group Chief Executive Dan Marokane said the recognition reflects a commitment to creating an environment where employees can thrive and contribute to the utility’s mandate of powering South Africa. Chief People Officer Dr Candice Hartley added that the certification recognises Eskom’s positive impact on employees and aligns the organisation with nearly 2500 employers across 131 countries.
However, Eskom’s latest financial disclosures show that the average cost per employee rose to R1.026 million in the 2025 financial year, a 12.4 percent increase year on year. The increase was driven by a seven percent salary adjustment and the reinstatement of short term performance incentives. While Eskom argues that remuneration varies widely by role, with bargaining unit salaries ranging from approximately R221,699 to R595,410 per year, senior engineers earn more than R1 million annually.
These increases have drawn scrutiny given Eskom’s fragile financial position. The utility’s 2025 financial year was underpinned by significant government debt relief funded by taxpayers, including R40 billion in advances and a planned R70 billion takeover of Eskom’s loan portfolio in the 2025/26 financial year. This forms part of a broader R254 billion debt relief package designed to stabilise the utility. Eskom’s total debt remains high at approximately R362.7 billion.
Although Eskom recently reported its first profit in several years, critics argue that the improvement cannot be viewed in isolation from the scale of government intervention. The utility continues to battle municipal debt of around R110 billion, which constrains cash flow and adds to its reliance on state support.
Against this backdrop, questions remain over whether rising employee costs are justified while Eskom depends on ongoing taxpayer bailouts to manage its debt. Industry observers note that restoring public confidence will require clearer alignment between remuneration, performance and Eskom’s ability to operate without continued state support – funded by the tax payer.
Author: Bryan Groenendaal
