{"id":800634,"date":"2024-11-21T09:30:00","date_gmt":"2024-11-21T07:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=800634"},"modified":"2024-11-21T09:18:35","modified_gmt":"2024-11-21T07:18:35","slug":"some-good-news-for-domestic-workers-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/800634\/some-good-news-for-domestic-workers-in-south-africa\/","title":{"rendered":"Some good news for domestic workers in South Africa"},"content":{"rendered":"\n<p>While domestic workers in South Africa remain under pressure\u2014with low pay and a slow recovery in the number of jobs\u2014the latest CPI data from Stats SA shows that wages are increasing above inflation, bringing some welcome relief.<\/p>\n\n\n\n<p>According to Stats SA, domestic worker wages (surveyed quarterly) rose by an annual 4.1% in Q3 2024 \u2013 above the annual increase of 3.9% in Q2 2024.<\/p>\n\n\n\n<p>This means domestic worker wages rose above the headline inflation figure of 2.8%, ensuring real wage growth of 1.3%.<\/p>\n\n\n\n<p>Core inflation\u2014the measure of inflation excluding food, fuel and energy\u2014sits slightly higher at 3.9%, but domestic worker wage growth is still higher.<\/p>\n\n\n\n<p>Domestic workers are facing a challenging time in the country with job numbers <a href=\"https:\/\/businesstech.co.za\/news\/lifestyle\/799528\/crisis-for-domestic-workers-in-south-africa-2\/\"><strong>hovering around the 850,000 mark<\/strong><\/a>, down significantly from the over 1 million positions before the Covid-19 pandemic.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>As of Q3: 2024, domestic work employment is still 16.8% (or 173,000 jobs) below its peak in Q3: 2019.<\/p>\n\n\n\n<p>By contrast, other elementary occupations \u2013 including farm labourers and construction and maintenance workers \u2013 have rebounded, with a 9.8% increase that surpasses pre-pandemic levels.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>Actual earnings surveyed by SweepSouth in August show actual wages are around R3,349 per month for women and R3,059 for men.<\/p>\n\n\n\n<p>Notably, this falling short of the NMW is disputed by a<a href=\"https:\/\/businesstech.co.za\/news\/lifestyle\/787434\/14-pay-hike-for-domestic-workers-in-south-africa\/\"><strong> 14% increase in domestic worker wages<\/strong><\/a> from the 2023 SweepSouth survey and an 8.5% hike to the NMW in 2024.<\/p>\n\n\n\n<p>A boon\u2014or a curse\u2014for domestic workers awaits in 2025.<\/p>\n\n\n\n<p>The National Minimum Wage Commission is currently going through the processes to determine the national minimum wage hike for 2025.<\/p>\n\n\n\n<p>The commission previously indicated that the minimum wage should increase at rates above inflation, so that wages grow in real terms and don\u2019t lose value.<\/p>\n\n\n\n<p>Factors considered by the Commission in the annual adjustment include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Inflation;<\/li>\n\n\n\n<li>The cost of living and the need to retain the value of the minimum wage;<\/li>\n\n\n\n<li>Wage levels and collective bargaining outcomes;<\/li>\n\n\n\n<li>Gross Domestic Product (GDP);<\/li>\n\n\n\n<li>The ability of employers to carry on their businesses successfully;<\/li>\n\n\n\n<li>The operation of small, medium or micro-enterprises and new enterprises; and<\/li>\n\n\n\n<li>The impact on employment or the creation of jobs.<\/li>\n<\/ul>\n\n\n\n<p>This could see the minimum wage for domestic workers increase significantly once again in 2025, bringing even more relief.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>Several studies and surveys published this year have shown that domestic help is <a href=\"https:\/\/businesstech.co.za\/news\/lifestyle\/797843\/bad-news-for-domestic-workers-in-south-africa-3\/\"><strong>one of the first costs to be cut<\/strong><\/a> when households look to save money.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/787628\/national-minimum-wage-changes-for-2025-are-coming\/\">National Minimum Wage changes for 2025 are coming<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflation has cooled off significantly in South Africa, with domestic worker wages showing stronger growth in real terms, bringing much-needed relief.<\/p>\n","protected":false},"author":10,"featured_media":697847,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9876],"tags":[26],"class_list":["post-800634","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/800634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=800634"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/800634\/revisions"}],"predecessor-version":[{"id":800640,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/800634\/revisions\/800640"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/697847"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=800634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=800634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=800634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}