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DOMESTIC WORKER MINIMUM WAGE EFFECTIVE 3 DECEMBER 2018

by | Dec 10, 2018 | 0 comments

The minimum wages in the Domestic Worker Sector have been increased by approximately 4,9% with effect from 3 December 2018. The actual extent of the respective increases depends on the geographic location of the employer, as well as whether the employee works for more than 27 hours per week.

Cities and towns
In most of our cities and most towns (Area A), the new minimum rates are as follows:
–    Works for more than 27 hours per week: R13,69 per hour;
–    Works 27 hours or less per week: R16,03 per hour.

Rural areas
In rural areas (areas outside Area A), the new minimum rates are as follows:
–    Works for more than 27 hours per week: R12,47 per hour;
–    Works 27 hours or less per week: R14,72 per hour.

For more details on the towns and cities that fall within Area A, as well as details of respective hourly, weekly and monthly rates Click here.

Effect of National Minimum Wage
Some confusion has arisen around the implementation of a new ‘National Minimum Wage’ (NMW) of R20 per hour on 1 January 2019 in terms of the National Minimum Wage Act of 2018 (“the Act”). This does not apply to domestic workers, though.

Schedule 1 of the Act states that despite the R20 per hour minimum wage “… domestic workers are entitled to a minimum wage of R15 per hour from a date fixed by the President by proclamation in the Gazette”. Although this suggests a future date than is not yet known, some commentators have assumed that it should also be 1 January 2019. While we disagree with the latter interpretation, we nevertheless recommend that our readers implement the R15 per hour minimum as from 1 January 2019.

For more information on broader impact of the National Minimum Wage, Click here.

Disclaimer: The material above is provided for general information purposes only and does not constitute legal or professional advice. Neither the author nor the publisher accepts responsibility for any loss or damage that may arise from reliance on information contained in this article.

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