Impact of The National Minimum Wage for domestic workers

The occupation that we recognise as “Domestic Worker” was only formally acknowledged as such, in 2018. Since 2018, the recognition of Domestic Workers as an occupation has afforded those governed as such with rights that they were previously denied. A minimum wage of R15.00 per hour was introduced as well as Employer’s being responsible for ensuring that their Domestic Workers were registered with the Unemployment Insurance Fund (UIF) as well as Workman’s Compensation Fund. The minimum wage has been increased periodically from R15.00 to R18.68 and thereafter to R19.19 per hour. As from the 1st March 2022, the minimum wage will increase to R23.19 per hour.

DOMESTIC WORKERS WAGE INCREASE
The increase was announced in the Government Gazette 45882 dated 7th February 2022, and this increase will bring the national minimum wage for Domestic Workers in line with all Employees. There is thus no longer a distinction between the minimum wage afforded to farm workers as well as domestic workers.
The National Minimum Wage for all occupations will be R23.19 per hour from 01st March 2022, except for those governed in terms of the Public Works Program with a minimum wage of R12.75 per hour.

CRIMINAL OFFENCE
Employers must be aware that it is a criminal offence to pay less than the National Minimum Wage. Employers are not permitted to engage in a negotiation with their employees whereby they agree to a daily wage that is less than the National Minimum Wage. The Basic Conditions of Employment Act ensures that no Employee can receive less than what is prescribed in the Act.

NATIONAL MINIMUM WAGE
The National Minimum Wage is only applicable to payment of ordinary hours of work and does not apply to allowances for transport, tools, meals, accommodation, bonuses and tips.The occupation titled “Domestic Worker” encapsulates the following job titles into the recognised definition – cleaner, child minder, gardener and chauffeur.

ALTERNATIVES TO RETRENCHMENT
It is suggested that, due to the increase in the prescribed national minimum wage where employers can no longer afford retaining their employee/s, they must attempt not to embark on retrenchment proceeding with their employee/s as this will increase the already staggering unemployment rate.
It is therefore suggested that in order to prevent retrenchment of their domestic worker/s employers should seek viable alternatives by either:

• Reducing the number of working hours; and/or
• Reducing the number of days, the domestic worker works per week.

Employers must be aware it is an unfair labour practice to reduce the hours or days that the employee works unilaterally, it must be per agreement.

OVERTIME
Employers must be aware that if employees work less than 24 hours per month they are not protected by the Basic Conditions of Employment Act.

The maximum hours of work an employee is allowed to work in one week cannot exceed 45 hours or less than 25 hours per week. Thereafter overtime must be calculated and paid at 1.5 times the ordinary hourly rate. If the employee usually works on a Sunday they must be paid at 1.5 times for actual hours worked, and if the employee does not usually work on a Sunday they must be paid at double their hourly rate.

If the employee works on a Public Holiday they are entitled to receive double their hourly rate recorded. if you do not work you must be paid times one for the total

An Employer is entitled to request an employee to work on Sundays, overtime and public holidays however, it must be per agreement and reasonable notice needs to be specified. The contract of employment can make provision therefore.
An Employee is entitled to an hour’s unpaid lunch break after 5 hours worked or unpaid 30 minutes if by agreement with the employee. If the employee’s shift does not exceed 6 hours no lunch break is required. If the employee is required to be on standby during the lunch break they must be paid therefor.

PRACTICAL WAGE CALCULATION
(Example Calculations)
In practice the National Minimum wage is calculated as follows:

1) Ordinary hours

2) Example 2:
Sunday work – not ordinary
08:00 to 12:00 = 4 hours x 2 = 8 hours x R23.19 = R185.52

3) Example 3:
Public holiday
Tuesday – as recorded
08:00 to 14:00 = 6 hours x 2 = 12 hours x R23.19 =R278.28
Total per week = R858.03