Domestic Workers Minimum Wage increase effective from 1 January 2018

The minimum wages in the Domestic Worker Sector will increase with effect from 1 January 2018. The extent of the increase depends on the location of the employer, as well as whether the employee works for more than 27 hours per week.

The department of labour has released the sectoral determination for domestic workers, showing the new minimum wages for domestics across South Africa – at least until the national minimum wage comes into effect.

According to the latest determination, domestic workers must get paid a minimum of R1 641 up to R2 545 per month, depending on which area you live in. This is a 5% increase from 2017’s rates.

The tables below show the new minimum wages – which are effective from 1 January 2018 to 30 November 2018.

(Please note that most large Metropolitan areas are regarded as A Areas while municipalities in the Vaal Triangle are B Areas).

These minimum wages are still part of the typical sectoral denomination, which will stand until the new National Minimum Wage (NMW) is implemented in 2018, and the regulations around it are ironed out.

The current plan for the general NMW is for it to come into effect from May 2018.

While the current general minimum wage is set at R3 500 a month (or R20 an hour), things will work differently for domestic workers, who will earn only 75% of that (R2,625 a month, or R15 an hour).

The reason for the lower wage is due to the higher risk of unemployment for domestic workers if the minimum wage is too high, National Treasury said in its NWM document.

However, unlike the sectoral determinations, the NMW does not make a distinction between different geographical areas, which means, once implemented, you may have to pay your domestic worker significantly more come May 2018.

National Treasury’s data shows that 91% of domestic workers in South Africa earn below R3 500 a month, with the average monthly salary only R1 164.

Currently, penalties and punishments are being considered for those who are found not to be paying in-line with the national minimum wage, including possibly paying the employee double the amount.

* The delay in the implementation date of the increase (1 January 2018 instead of 1 December 2017) was presumably caused by confusion about the effect that implementation of the National Minimum Wage – due to be implemented on 1 May 2018 – would have on other minimum wages that are lower than the National Minimum Wage. The minimum wages for domestic workers is only one example.