Some good news for domestic workers in South Africa
While domestic workers in South Africa remain under pressure—with low pay and a slow recovery in the number of jobs—the latest CPI data from Stats SA shows that wages are increasing above inflation, bringing some welcome relief.
According to Stats SA, domestic worker wages (surveyed quarterly) rose by an annual 4.1% in Q3 2024 – above the annual increase of 3.9% in Q2 2024.
This means domestic worker wages rose above the headline inflation figure of 2.8%, ensuring real wage growth of 1.3%.
Core inflation—the measure of inflation excluding food, fuel and energy—sits slightly higher at 3.9%, but domestic worker wage growth is still higher.
Domestic workers are facing a challenging time in the country with job numbers hovering around the 850,000 mark, down significantly from the over 1 million positions before the Covid-19 pandemic.
Recent analysis from Stats SA showed that the sector is struggling to recover, while almost every other industry has returned to or surpassed pre-Covid levels.
As of Q3: 2024, domestic work employment is still 16.8% (or 173,000 jobs) below its peak in Q3: 2019.
By contrast, other elementary occupations – including farm labourers and construction and maintenance workers – have rebounded, with a 9.8% increase that surpasses pre-pandemic levels.
On the pay front, while domestic workers should be earning R27.58 per hour following the implementation of the 2024 national minimum wage hike in February (approximately R4,400 per month for full-time work), industry surveys shows that most still earn far below this.
Actual earnings surveyed by SweepSouth in August show actual wages are around R3,349 per month for women and R3,059 for men.
Notably, this falling short of the NMW is disputed by a 14% increase in domestic worker wages from the 2023 SweepSouth survey and an 8.5% hike to the NMW in 2024.
A boon—or a curse—for domestic workers awaits in 2025.
The National Minimum Wage Commission is currently going through the processes to determine the national minimum wage hike for 2025.
The commission previously indicated that the minimum wage should increase at rates above inflation, so that wages grow in real terms and don’t lose value.
Factors considered by the Commission in the annual adjustment include:
- Inflation;
- The cost of living and the need to retain the value of the minimum wage;
- Wage levels and collective bargaining outcomes;
- Gross Domestic Product (GDP);
- The ability of employers to carry on their businesses successfully;
- The operation of small, medium or micro-enterprises and new enterprises; and
- The impact on employment or the creation of jobs.
This could see the minimum wage for domestic workers increase significantly once again in 2025, bringing even more relief.
However, the potential risks for domestic workers are that private households could instead opt to let their domestic workers go instead of paying higher rates.
Several studies and surveys published this year have shown that domestic help is one of the first costs to be cut when households look to save money.
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