Domestic workers wages to increase

THE Department of Labour earlier this month released its sectoral determination regarding domestic workers’ wages, which will become binding on 1 January.

Broken down into Area A, being large metropolitan municipalities and built-up areas, and Area B, being all other municipalities, the new rates will differ accordingly.

The City of uMhlathuze falls under Area A.

Within Area A, people whose domestic workers are employed for more than 27 hours per week will need to pay them a minimum of R13.05/hr, R587.40/week or R2 545.22/month.

Domestic workers employed within Area A for 27 hours a week or less must, from next week, be paid R15.28/hr, R412.60/week or R1 787.80/month.

While the new National Minimum Wage (NMW) Bill kicks in only in May, domestic worker increases are effective from the new year.

ALSO READ: New minimum wage bill to be promulgated

These minimum wages still form part of the sectoral determination, which will remain in effect until the implementation of the NMW.

When the NMW does come into effect, domestic workers will earn only 75% of the stipulated minimum wage, owing to the potentially high risk of unemployment if their minimum wage is too high, according to National Treasury.

However, unlike the sectoral determination’s wage stipulations differing according to areas, the NMW does not make a distinction between geographic locations.

This means employers of domestic workers who currently fall within Area B, where domestic workers’ salaries are lower, may have to pay their domestic workers more once the NMW comes into effect in May.

The government is considering penalties for employers found to be paying salaries lower than the minimum wage, including paying the employee double the amount.

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