Big trouble for domestic workers in South Africa

Domestic worker jobs in South Africa have dropped 17% since 2019, marking a permanent break in the market where around 150,000 workers are unlikely to find work.

While the sector saw a slight increase in employment in the final quarter of 2024, the dial has not shifted in any meaningful way for the last four years.

This was revealed in Stats SA’s latest Quarterly Labour Force Survey (QLFS) for the fourth quarter of 2024.

The data showed a marginal uptick in the number of employed South Africans between October and December 2024, decreasing the unemployment rate to 31.9% from 32.1% in Q3.

South Africa saw 132,000 more people employed over the quarter, including around 8,000 more domestic worker jobs, up 0.9%.

However, the total number of domestic workers employed was still 861,000 at the end of the year—15,000 fewer than at the same time in 2023.

This shows that the crisis for domestic worker jobs since the Covid-19 pandemic is firmly entrenched, with the industry now supporting approximately 150,000 fewer jobs than before.

Pre-Covid-19, South Africa employed over 1 million domestic workers. Industry reports pointed to around 250,000 domestic workers losing their jobs during the pandemic.

While the sector recovered slightly in subsequent years, it has never again reached its pre-Covid levels.

The deficit now sits at around 152,000 jobs gone from the market, and there are growing concerns that even more pressure will be laid on the sector in 2025.

This is due to continued pressure on private households, which remain the country’s biggest employers of domestic workers.

Stats SA’s data shows that private household employment has ticked up on both a quarter-on-quarter basis—adding 18,000 jobs—and year-on-year—adding 12,000 jobs.

However, this is not reflected in the numbers for domestic workers, which means they are not benefiting from this improvement.

Instead, several household financial health surveys have shown that households consider domestic help a ‘luxury’ and are listed as one of the top three budget items they will cut to save money.

Domestic worker troubles

According to trade union UASA, there are worries that the latest update to the National Minimum Wage (NMW) will exacerbate struggles in the sector, making domestic workers even more costly to employ in 2025.

The Department of Labour recently announced that the minimum wage will be hiked by 4.4% to R28.79 per hour, up from R27.58 in 2024.

This translates to about R115 per day, minimum, and up to R5,600 a month for a full-time employee. This also applies to domestic workers.

UASA said that the outlook for domestic workers in 2025 is uncertain, given ongoing challenges in the sector.

“The pressures from 2020-2024, including economic challenges, job losses, and rising living costs, continue to place financial strain on both employers and domestic workers,” the group said.

“Many households are still struggling financially, leading to concerns that some employers may reduce working hours, opt for part-time help, or discontinue domestic worker services altogether.”

Due to the informal nature of many domestic workers’ employment terms, non-compliance with the minimum wage and unfair dismissals are rife and remain pressing issues.

The union said the government needs to protect these vulnerable workers, suggesting that the state consider wage subsidies or even tax incentives for households employing them.

“This can help employers afford fair wages without resorting to job cuts. The sector must be regulated with policies and standardised contract systems to ensure fair working conditions,” it said.

The Department of Labour has been working to formalise the domestic worker sector, with mixed results.

Over the last few years, domestic workers have become eligible for the Unemployment Insurance Fund (UIF) and the Compensation for Occupational Injuries and Diseases Act (COIDA).

However, both of these protections require employers to take on the administration and additional fees associated with the registration and management of these items.

Employees are widely unaware of these rights and protections.

Domestic worker platform SweepSouth noted that in 2024, only 7% of workers in its annual survey were registered for UIF. In addition, most (59%) of workers had never heard of COIDA or its implications.

Despite this, awareness and protections are improving, with almost 60% of UIF registered workers who lost their jobs ultimately claiming and benefitting from the fund.