South African Domestic Workers Face Growing Job Losses and Financial Struggles

South Africa’s domestic workers are facing an increasingly precarious situation, with job losses and financial instability on the rise. According to the latest data, the number of domestic workers has declined by 15,000 in the past year, reflecting broader economic pressures on households and the unintended consequences of minimum wage increases.

A Declining Sector

The Quarterly Labour Force Survey (QLFS) by Stats SA revealed that while South Africa’s overall unemployment rate dropped slightly to 31.9% in the fourth quarter of 2024, the domestic work sector saw a significant decline. Only 861,000 domestic workers were employed at the end of 2024, down from over 1 million before the COVID-19 pandemic. The pandemic alone led to the loss of approximately 250,000 domestic worker jobs, and the sector has struggled to recover since.

Over the past 15 years, domestic work has seen a 0.3% decline in employment, according to the Real Economy Bulletin by Trade & Industrial Policy Strategies (TIPS). This trend highlights the long-term challenges facing the sector, which remains heavily reliant on household budgets.

Financial Pressures on Households

One of the primary reasons for the decline in domestic worker employment is the financial strain on South African households. DebtBusters’ latest report for Q4 2024 found that 68% of take-home pay is being used to service debt, with high-income earners (those earning R35,000 or more per month) spending 74% of their income on debt repayments. This leaves little room for discretionary spending, including the employment of domestic workers.

Compounding the issue, South Africans have 42% less spending power than they did nine years ago, as salary increases have failed to keep pace with inflation. While nominal incomes have risen by 2% over the past eight years, cumulative inflation has reached 44%, significantly eroding purchasing power.

The Impact of Minimum Wage Increases

In an effort to protect workers, the Department of Labour announced a 4.4% increase in the national minimum wage (NMW) for 2025, raising it to R28.79 per hour (R115 per day or R5,600 per month for full-time workers). While this increase is necessary to help workers cope with rising living costs, it has had unintended consequences for domestic workers.

Many employers, already struggling with financial pressures, are finding it difficult to afford the higher wages. According to the United Domestic Workers of South Africa (UDWOSA), this has led to irregular payments, with some domestic workers receiving only half their salaries. Others are being forced to choose between accepting reduced wages or losing their jobs entirely.

The Struggle to Make Ends Meet

Even for domestic workers who receive their full salaries, the minimum wage remains insufficient to cover basic living expenses. Research from the PMBEJD Group shows that a domestic worker earning the NMW is approximately R2,000 short each month when accounting for essentials such as transportation, electricity, and food. To afford a basic standard of living, a worker would need a wage of R6,633.02 per month (R37.69 per hour or R301.50 per day).

Pinky Mashiane, founder of UDWOSA, has noted a growing number of domestic workers reporting financial difficulties. “Many are struggling to make ends meet, and the situation is only getting worse,” she said. “We need urgent action to address this crisis.”

The Way Forward

The challenges facing South Africa’s domestic workers underscore the need for comprehensive solutions that address both employment stability and living wages. While minimum wage increases are essential, they must be accompanied by measures to support households and employers, such as tax incentives or subsidies for low-income families.

Additionally, there is a need for greater advocacy and support for domestic workers, including access to financial literacy programs, legal protections, and social safety nets. Organizations like UDWOSA play a crucial role in amplifying the voices of domestic workers and pushing for policy changes that improve their livelihoods.

South Africa’s domestic workers are at a crossroads, facing job losses, financial instability, and inadequate wages. As household budgets tighten and minimum wage increases strain employers, the sector is in urgent need of innovative solutions to protect workers and ensure their economic security. By addressing these challenges, South Africa can create a more equitable and sustainable future for its domestic workforce.

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