South Africa’s Domestic Workers Face Job Losses as Market Shrinks

Domestic workers in South Africa are facing increasing job insecurity, with employment in the sector dropping by 17% since 2019. The latest data from Stats SA’s Quarterly Labour Force Survey (QLFS) for Q4 2024 highlights a troubling trend—while the overall unemployment rate dipped slightly to 31.9%, domestic worker jobs remain significantly below pre-pandemic levels.

At the end of 2024, South Africa had 861,000 domestic workers employed, reflecting a year-on-year decline of 15,000 jobs. This continues a worrying pattern seen since the Covid-19 pandemic, which wiped out nearly 250,000 domestic worker jobs.

While the sector has shown minor signs of recovery, the long-term outlook remains grim, with 152,000 jobs permanently lost and no clear path to reversing the decline.

Why Domestic Workers Are Losing Jobs

The primary driver behind job losses in the domestic worker sector is financial strain on households—South Africa’s largest employers of domestic workers. Despite a modest increase in private household employment (up 18,000 jobs quarter-on-quarter and 12,000 jobs year-on-year), these gains have not translated to more domestic worker positions.

Several household financial health surveys indicate that hiring domestic workers is now seen as a luxury expense, with many families listing it among the first costs to cut when budgeting.

Additional factors contributing to the crisis include:

• Rising living costs reducing disposable income for many middle-class families.
• Economic stagnation preventing households from increasing spending on services.
• The shift to part-time or shared domestic work arrangements as families try to save money.

Minimum Wage Increase Adds More Pressure

Adding to the sector’s difficulties, South Africa’s National Minimum Wage (NMW) will rise by 4.4% in 2025. The Department of Labour recently confirmed that domestic workers will now be entitled to a minimum of R28.79 per hour, up from R27.58 in 2024.

This increase translates to:

• R115 per day for part-time workers
• Up to R5,600 per month for full-time domestic employees

While this is a necessary step for fair wages, many fear that the higher costs will make it even harder for households to afford domestic workers, potentially leading to further job losses.

Labour Rights and Government Intervention

Despite efforts to formalize the domestic worker sector, many workers remain unaware of their legal rights.

• Only 7% of domestic workers surveyed by SweepSouth in 2024 were registered for the Unemployment Insurance Fund (UIF).
• 59% of workers had never heard of COIDA (Compensation for Occupational Injuries and Diseases Act), meaning they are missing out on critical protections.

The UASA trade union has called for government intervention, suggesting wage subsidies or tax incentives to help families afford fair wages without cutting jobs. Additionally, better enforcement of labour laws and mandatory contracts could help protect workers from unfair dismissals and non-compliance with the minimum wage.

The Road Ahead for Domestic Workers

As economic uncertainty continues into 2025, South Africa’s domestic worker sector remains under severe pressure. Without stronger support measures, more jobs may be lost, leaving thousands of workers without income or job security.

For now, experts advise domestic workers to register for UIF, become aware of their labour rights, and explore alternative employment options such as freelance or shared domestic work arrangements to navigate these challenging times.

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