Good News for Domestic Workers in South Africa: Wages Rise Above Inflation

Domestic Worker Wages in South Africa Rise Above Inflation

Amid ongoing challenges in the domestic worker sector, South Africa has seen a glimmer of hope: wages for domestic workers are rising above inflation, providing some much-needed relief.

According to Stats SA’s Q3 2024 Consumer Price Index (CPI) data, domestic worker wages rose by an annual 4.1%, outpacing the 2.8% inflation rate and delivering a real wage growth of 1.3%. This marks a slight improvement from the 3.9% increase recorded in Q2 2024.

The Struggle for Job Recovery

Despite the wage increase, domestic workers are still grappling with reduced job numbers. The sector remains 16.8% below pre-Covid-19 levels, with 850,000 workers employed in Q3 2024 compared to over 1 million in 2019.

In stark contrast, other elementary occupations such as farm labor and construction work have surpassed pre-pandemic employment levels, showing a 9.8% increase.

Minimum Wage vs. Actual Earnings

While domestic workers should legally earn a minimum of R27.58 per hour (approximately R4,400 per month for full-time work), actual earnings fall significantly short.

• Women: Average monthly earnings of R3,349
• Men: Average monthly earnings of R3,059

These figures come from SweepSouth’s August 2024 survey, which, despite showing a 14% annual increase, highlights the disparity between legal minimums and actual wages.

What Lies Ahead for Domestic Workers?

2025 Minimum Wage Adjustments

The National Minimum Wage Commission is currently deliberating on the 2025 hike, with indications that wages may rise above inflation to ensure continued real wage growth.

Factors influencing the adjustment include:

• Inflation and cost of living
• Gross Domestic Product (GDP)
• Wage levels and collective bargaining outcomes
• Small business sustainability
• Job creation and employment impact

Opportunities and Risks

While a higher minimum wage could offer significant relief, it comes with risks:

• Positive Impact: Continued real wage growth and improved living conditions for workers.
• Negative Impact: Private households, unable to afford increased wages, may reduce working hours or let domestic workers go altogether.

Studies show that domestic help is one of the first costs to be cut when households look to save money, which could further impact job recovery in the sector.

The recent wage increases provide a welcome reprieve for domestic workers in South Africa, even as job numbers remain a concern. With the potential for another above-inflation hike in 2025, the outlook for the sector hinges on balancing wage growth with job preservation.

While challenges remain, the commitment to real wage growth and policy adjustments offers hope for a more equitable future for domestic workers.