From the 1st of December 2016, the minimum wages for domestic workers will be increased, are you ready?
What is the minimum wage for domestic workers?
Every year we hear about minimum wages and the yearly increase. Do not be in the dark 2015/2016, let us explain it to you!
Who is covered by the Sectoral Determination for Domestic Workers?
- Domestic Drivers
They all are covered by the Sectoral Determination for Domestic Workers, except in the event that they fall under a bargaining council or another Sectoral Determination.
An example of where an employee will fall under Sectoral Determination is a gardener at the office or a cleaner at the factory.What is a Minimum Wage?
Minimum wages are the minimum sum payable to a worker for work performed or services rendered within a given period, whether calculated on the basis of time or output, which may not be reduced either by individual or collective agreement and is therefore guaranteed by law.
The above definition means that you may not pay your worker lower than the minimum wages, no matter what the situation.
How do the areas work?
The country is divided into two areas – Area A and Area B.
Area A includes the following municipalities: Bergrivier, Breederivier, Buffalo City, Cape Agulhas, Cederberg, City of Cape Town, City of Johannesburg, City of Tshwane, Drakenstein, Ekurhuleni, Emalahleni, Emfuleni, Ethekwini Unicity, Gamagara, George, Hibiscus Coast, Karoo Hoogland, Kgatelopele, Khara Hais, Knysna, Kungwini, Kouga, Langeberg, Lesedi, Makana, Mangaung, Matzikama, Metsimaholo, Middelburg, Midvaal, Mngeni, Mogale, Mosselbaai, Msunduzi, Mtubatuba, Nama Khoi, Nelson Mandela, Nokeng tsa Taemane, Oudtshoorn, Overstrand, Plettenbergbaai, Potchefstroom, Randfontein, Richtersveld, Saldanha Bay, Sol Plaatjie, Stellenbosch, Swartland, Swellendam, Theewaterskloof, Umdoni, uMhlathuze and Witzenberg
The rest of the municipalities fall under Area B.
What should I pay my Domestic Worker?
Domestic workers who work 27 ordinary hours per week or more:
|Area A||Area B|
Domestic workers who work less than 27 ordinary hours per week:
|Area A||Area B|
How do I calculate the wages?
Wages are calculated by using the ordinary hours of work.
Daily wage: hourly wages x hours worked in a day
Weekly wage: daily wage x days worked
Monthly wage: weekly wage x 4.33 (because a month is not only 4 weeks)
Should I pay UIF for my Domestic Worker?
The answer is yes, even if your Domestic Worker only works two days per week, you still need to register him/her for UIF. The UIF is 2% of the employee’s total earnings – 1% contributed by the employer and 1% contributed by the employee.
Note that the Unemployment Insurance Act does not apply to workers working less than 24 hours per month for an employer.
I live in Area A. My domestic worker work 2 days per week, for 7 hours per day. How do I calculate her wages?
- Daily wage: 7 x R14.54 = R101.78
- Weekly wage: 2 x R101.78 = R203.56
- Monthly wage: 4.33 x R203.56 = R881.41