Rand Water | Integrated Annual Report 2025

REMUNERATION REPORT

1. Remuneration policy

The policy statement of Rand Water commits to modelling its remuneration and incentive policy in a manner that encourages productivity and retention of employees. Rand Water aims to attract, motivate, and retain talented employees, by having a remuneration policy and the administration of guaranteed pay that will ensure consistent, fair, transparent remuneration, whilst considering market norms, complying with legislative requirements and industry standards. This policy is therefore developed to set out the underpinning structure for the remuneration of employees. The short-term incentive policy encourages alignment between the corporate objectives, plans together with functional and individual KPIs in such a manner that links employee reward to organisational, Business Unit and individual performance. It is therefore the basis which employees are compensated for their outputs toward the achievement of agreed performance, in a manner that does not translate into a liability for the organisation nor a vesting mentality for employees. The following are core remuneration principles that are permanent and play a crucial role in guiding decisions, policies, processes and practices: 2.1 Internal equity Rand Water endeavours to remunerate employees fairly and consistently according to their contribution, thereby ensuring that employees of equal value (i.e. equal levels of contribution) are rewarded equitably. 2.2 External competitiveness Rand Water surveys the external job market continuously to strategically position itself so as to ensure competitive packages within the parameters of affordability. Rand Water’s relative market position will always ensure that it is possible to retain and attract the core competencies (top performers) required for Rand Water’s strategy achievement. 2.3 Legal compliance 2. Remuneration principles

Rand Water’s remuneration process is underpinned by applicable legislative parameters and acceptable standards.

3. Remuneration benchmarking (external competitiveness)

Rand Water benchmarks its remuneration against the 50th percentile of the market/market median. This is a practical approach that provides: a) A common yardstick for comparison of all jobs in the market. b) A constant from which adjustments can be calculated. Benchmarking is done on the basis of base pay as well as total cost to the company and in this regard Rand Water: a) Forecasts benchmark data six months forward from the date of the annual review so as to lead the market for six months. b) Gives precedence to any provisos of legislation and/or agreements which may be in place.

204

Rand Water | Integrated Annual Report 2025