Warning for households that employ domestic workers in South Africa
Nedbank has warned households that employ domestic workers of the National Minimum Wage (NMW) hike in effect this month and the current laws and processes that must be followed as an employer in South Africa.
From 1 March 2024, the Department of Labour raised the new minimum wage for full-time domestic workers from R25.42 to R27.58 per hour.
Nedbank noted that employing someone more than 24 hours a month is considered full-time.
The bank added that if your domestic worker works eight hours a day, five days a week, you must pay them at least R1,103.20 a week – averaging around R4,780.50 a month.
Nedbank warned that employers who pay less may find themselves in trouble with the Department of Labour.
The bank has also noted to employers of domestic workers that they may face a fine of up to R10,000 if they do not register their workers.
Failure to comply with this requirement could result in legal action or prosecution, leading to even more significant fines and potential imprisonment.
Therefore, employers are advised to register domestic workers to avoid legal complications.
This is because domestic workers are now considered formal employees under the COIDA, meaning that anyone employing a domestic worker must comply with the relevant laws as of April 2023.
Domestic workers and employees working over 24 hours per month must be registered with the Unemployment Insurance Fund (UIF).
Employers with domestic workers working these hours must register with UIF and list them as employees.
A total of 2% of the employee’s salary must be paid to UIF each month – 1% has to be paid by the employer, and the other 1% may be deducted from the employee’s wages.
Additional requirements include providing a legitimate contract of employment, proof of payment of UIF contributions and a monthly payslip.
Nedbank also reminded employers to follow the Basic Conditions of Employment Act (BCEA) and the Sectoral Determination for Domestic Workers (SDDW) when employing domestic workers.
Considering the relatively new requirements, Nedbank outlined a step-by-step guide on registering your domestic worker – listed below.
1. Get an employer reference number
As an employer, you must get an employer reference number from the Department of Labour.
You can apply online at the UIF eService Portal or visit your nearest Department of Labour centre.
2. Complete the UI-8D form
Download the UI-8D from the Department of Labour website, which is a form specifically for employers of domestic workers.
Fill in your details, your domestic worker’s details, and the required information about their employment conditions.
3. Calculate UIF contributions
Contributions to UIF are calculated at 1% of the domestic worker’s total wage. As an employer, you must also contribute an additional 1%.
For example, if your domestic worker earns R5,000 a month, you and your domestic worker will contribute R50 each (totalling R100) to UIF.
As the employer, you will pay R5,050 a month in total, and your domestic worker will get R4,950.
4. Register your domestic worker for UIF
To apply for unemployment benefits for your domestic worker, you must fill out the UI-8D form and submit it to your nearest labour centre.
Along with the form, you must also provide a certified copy of your worker’s ID or passport and proof of their address.
You can email the documents to [email protected]. or submit them in person. Don’t forget to keep a copy of the submitted documents for your records.
5. Set up a UIF payment process
After registering your domestic worker for UIF, it is essential to establish a system for making monthly UIF payments.
You can accomplish this using the UIF eService Portal or the UIF banking details provided on the Department of Labour’s website.
6. Keep records of UIF payments
It is legally required that you keep a detailed record of all the payments you make towards UIF on behalf of your domestic worker.
It is also your responsibility to provide your domestic worker with a monthly payslip, including their UIF contributions.
These records should be stored securely, as you may need them for future UIF claims or audits.
7. Update any changes
It is important to inform the Department of Labour if there are any changes in your domestic worker’s employment conditions, such as an increase in their salary.
You can do this by submitting a new UI-8D form that contains the updated information.
Loading ...