Rand Water | Integrated Annual Report 2025

Consolidated Annual Financial Statements for the year ended 30 June 2025

REMUNERATION REPORT (CONTINUED)

The table below displays the pay gap within the organisation, referencing the national norm of 0.67.

Total guaranteed pay

- highest paid - lowest paid

R'000 R'000 R'000 R'000 Times

5 662

304 744 561 0.45

Average guaranteed pay

Median guaranteed pay of all employees Guaranteed pay gap (Gini coefficient)^

5. Benefits and allowances

Rand Water employees are entitled to a comprehensive benefits package. Participation in the Group benefit schemes is a condition of service for all permanent employees. These benefits include membership in a provident fund, group life insurance, and medical aid, where both employer and employee contributions are clearly set out. In addition, various allowances form part of the overall remuneration package, and these may differ depending on the nature and requirements of the job. Conditions of service, including benefits and allowances, are negotiated through the Amanzi Bargaining Council. Once agreements are reached, any amendments or adjustments to benefits or allowances are implemented accordingly.

6. Variable pay (Short-Term Incentive Scheme)

Rand Water operates a Short-Term Incentive Scheme which is based on the achievement of predetermined operational, technical, social and financial performance measures. The Board is engaged to approve the Corporate Scorecard for the organisation. The Scheme is self-funding and any pay-outs contemplated are at the discretion of the relevant governance structures. Performance measures are outlined in the Corporate, Business Unit, Divisional, Departmental, and individual scorecards. The scheme aims to drive the achievement of the organisation’s performance objectives. The organisation achieved a positive performance across the majority of key performance indicators set out in the Corporate Score Card, which is a combination of targets from the shareholder compact signed between Rand Water and the Department of Water and Sanitation, as well as KPI’s derived from Rand Water’s strategy. For the 2023/2024 financial year, a Short-Term Incentive was paid to eligible employees in December 2024. Any payouts are implemented after all internal and external assurance processes have been concluded, and the relevant approvals from Board Committees are obtained. The Human Resources and Remuneration Committee, in line with the mandate of the committee aligned to its terms of reference, oversees the activities related to employees within the organisation at all levels. At a strategic level, the following key activities were undertaken: • Approved the salary mandate to be negotiated and implemented for the 2024/2025 financial year. • Received feedback on the organisation's performance against the Strategic Goals. • Received feedback on the organisation's performance against the Corporate Scorecard, as well as the Group Chief Executive's performance against the Strategic Goals. 7. REMCO Activities

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Rand Water | Integrated Annual Report 2025