New problem for households now employing South African domestic workers
Households have reported that some South African domestic workers have asked their employers not to register them with the Unemployment Insurance Fund (UIF).
This is because earning the National Minimum Wage (NMW) or more disqualifies them from receiving SASSA grants.
The issue has emerged as many households search for local domestic workers following the departure of foreign workers amid heightened immigration enforcement and anti-immigrant protests.
BusinessTech received a letter from several readers who said they had noticed a growing trend among prospective domestic workers.
One reader explained that they had previously employed a Malawian domestic worker who had initially held a valid work permit but later struggled to renew her documents through the Department of Home Affairs.
“I took over the domestic services of a Malawian lady after my son and his wife divorced. She originally had a valid work permit, but each time she attempted to extend it, she was faced with challenges at Home Affairs,” the reader said.
The employer said they encouraged the worker to return to Malawi to renew her passport and obtain the necessary work documents, giving her two months’ written notice before she left South Africa in March.
“I paid my Malawian domestic worker above the minimum wage and went above and beyond to assist her whenever she required additional support,” the reader said.
However, they added that the current environment has made finding a replacement more complicated.
“Since all the anti-immigrant protests and repatriation/deportation process began, I know many households that had to let their foreign employees go and are now trying to find a suitable local domestic worker.”
“Many have told the same story. The potential candidates have requested that they not be registered for UIF because they wish to continue to draw their full SASSA grant over and above their wages.”
The reader also questioned whether registering a worker for UIF automatically affects their eligibility for the grant.
“If I am to comply with the labour law, then it is only fair that SASSA recipients are no longer milking the government system,” they said.
Complying with the request is colluding
The concern comes at a time when South Africa has seen significant movement of migrant workers following the widely reported June 30 deadline warning.
Authorities have recently processed around 67,000 migrants for deportation or voluntary repatriation, while Zimbabwe has reported that nearly 100,000 of its citizens have returned home since late May.
The impact has also been felt by the online domestic-worker platform SweepSouth. Chief executive Lourandi Kriel said demand and bookings were heavily disrupted during the recent unrest.
“We recorded the highest rate of lost bookings on our platform since the Covid period,” Kriel said, adding that transport disruptions and safety concerns were the biggest reasons.
“On June 30 itself, the number of lost bookings in a single day surpassed what we typically see in a whole month.”
BusinessTech examined the relevant legislation to determine whether employers should agree to requests not to register workers for UIF. The answer is clear: they should not.
Under the Unemployment Insurance Act and the Basic Conditions of Employment Act, employers must register any employee who works more than 24 hours in a month for UIF.
Failing to do so can result in backdated UIF contributions, interest and other labour law penalties. The National Minimum Wage Act also requires domestic workers to receive at least the national minimum wage.
From 1 March 2026, this stands at R30.23 per ordinary hour worked. Someone working a standard 45-hour week would earn about R5,890 per month before deductions.
Whether a worker qualifies for a SASSA grant depends on the specific grant and their income.
The Social Relief of Distress (SRD) grant has a monthly income threshold of R624. A full-time domestic worker earning the minimum wage would therefore not qualify.
The Child Support Grant operates differently. It is subject to a means test, with a single applicant currently required to earn no more than R5,800 per month.
This means a full-time domestic worker earning the minimum wage could exceed the threshold, while a part-time worker earning below it may still qualify even if registered for UIF.
For employers, the legal obligation is straightforward. Regardless of an employee’s request, anyone working more than 24 hours a month must be registered for UIF.
Deliberately avoiding registration to help someone claim benefits they are not entitled to could expose both parties to legal consequences.
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