Don’t have your Nedbank ID yet?
Nedbank ID single sign-on gives you full digital access to Nedbank’s banking and lifestyle products and services on the Money app or Online Banking.
Log in
Log in to Online Banking or another one of our secured services.
Bank how and when you choose to, with the low fees or extra benefits you want.
Shop online or instore and earn rewards for it, with up to 55 days interest-free credit.
Buy foreign banknotes, transfer funds or shop globally with a travel card.
Great interest rates, with great flexibility and access to your money when you need it.
Personalised interest rates for affordable loans from R2,000 to R300,000.
Loan up to 100% of the property value or up to 105% if you are a first-time home buyer.
Choose a plan for yourself, family or build your own cover to suit your needs.
Get cover for your car, building, house contents, valuables and more.
Cover your bond, credit card, overdraft, loan and car repayments.
Choose a plan for yourself, family or build your own cover to suit your needs.
Take the right steps to achieve your financial goals with expert financial planning.
Plan for everything you own and owe, so your estate is in order when you’re gone.
Accounts
-
Everyday banking Safety, convenience and rewards
-
Youth banking For under 16s, or under 25s
-
Accounts -
Digital wallet Your phone is your bank account
-
Private Wealth The globally integrated account
-
Goal saving Easy access to interest earned
Credit cards
Digital banking
Switch to Nedbank
Fraud awareness
Forex
Rewards
Accounts
-
On demand Money available at any time
-
In 24 hours Cash in your hand the next day
-
In 32 days Funds ready within a month
-
End of term Investments left until maturity
Investment services
Share trading
Personal loans
Home loans
Student loans
Overdrafts
Vehicle finance
Solar finance
Life cover
Funeral cover
Short term insurance
Credit Life
Travel insurance
Is your business covered?
Secure Investments
Financial planning
Estate, wills & trust services
Nedbank Private Wealth
Speak to a financial adviser
Blog
Talk to us
Find us
- Login & Register
- Online Banking
- Online Share Trading
- NetBank Business
- NedFleet
- Nedbank Greenbacks
- Nedgroup Investments
- Nedbank ID
- Bank
- Accounts
- Credit cards
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Rewards
- Explore Bank
- Accounts
- Everyday banking
- Youth banking
- Accounts
- Digital wallet
- Private Wealth
- Goal saving
- See all accounts
- Get help choosing
- Family Banking
- Refugees and asylum seekers
- FAQ
- How-to guides
- Everyday banking
- MiGoals Premium
- MiGoals Plus
- MiGoals
- Discontinued accounts
- Youth banking
- Nedbank4Me
- Digital wallet
- MobiMoney
- Private Wealth
- Private Wealth Bundle
- Goal saving
- MyPocket
- American Express
- Amex Gold
- Amex Platinum
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Send and receive
- Rewards
- Save & Invest
- Accounts
- Investment services
- Share trading
- Explore Save & Invest
- On demand
- Club
- Money Market
- Stokvel
- In 24 hours
- JustInvest
- PlatinumInvest
- Tax-free Savings
- MoneyTrader
- EasyAccess Fixed Deposit
- PrimeSelect
- In 32 days
- Electronic 32Day Notice
- 32Day Notice
- End of term
- Tax-free Fixed Deposit
- Electronic Fixed Deposit
- Electronic Optimum Plus
- Platinum Fixed Deposit
- Fixed Deposit
- OptimumPlus
- Investment services
- Share trading
- Borrow
- Personal loans
- Home loans
- Student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Explore Borrow
- Personal loans
- Consolidation loan
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Explore loans
- FAQ
- How to guides
- Consolidation loan
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Home loans
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R29,600 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Explore home loans
- FAQ
- How to guides
- Track application
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R29,600 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Student loans
- Explore student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Insure
- Life cover
- Funeral cover
- Short term insurance
- Credit Life
- Travel insurance
- Is your business covered?
- Secure Investments
- Explore Insure
- Life cover
- Get a call back
- Explore MyCover life
- Funeral cover
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Get a call back
- Explore MyCover Funeral
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Get a call back
- Explore MyCover short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Credit Life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Get a call back
- Explore credit life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Travel insurance
- Is your business covered?
- Secure Investments
- Guaranteed Growth Plan
- Guaranteed Income Plan
- Get a call back
- Explore MyCover Funeral
- Guaranteed Growth Plan
- Guaranteed Income Plan
- Plan
- Financial planning
- Estate, wills & trust services
- Nedbank Private Wealth
- Speak to a financial adviser
- Explore Plan
- Financial planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Estate, wills & trust services
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Nedbank Private Wealth
- Speak to a financial adviser
- Learn
- Blog
- Explore Learn
- Blog
- Contact us
- Talk to us
- Find us
- Explore Contact us
- Talk to us
- Find us
Domestic workers, minimum wage, and the law
Domestic workers, minimum wage, and the law
Staff writer
Posted 19/07/2023 3 mins
Employers and both part- and full-time domestic workers should know the law.
According to South African labour laws, domestic workers include employees who perform a range of tasks in households, including cleaning, laundry, cooking, gardening, driving, childcare, and caring for the elderly or disabled.
Employing a domestic worker is common in South Africa, but it is crucial for both employers and employees to understand their legal rights and obligations. Let’s unpack the new minimum wage for domestic workers and how it affects employers, full-time and part-time domestic workers.
The minimum wage for domestic workers in 2023
From 1 March 2023, the Department of Labour set the new minimum wage for full-time domestic workers at R25.42 per hour. Employing someone for more than 24 hours a month is considered full-time. If your domestic worker works 8 hours a day, 5 days a week, they should be paid at least R4,067.20 a month. Employers who pay less may find themselves in trouble with the Department of Labour.
Employers must also note that domestic workers’ wages must be paid in money, not ‘in kind’. So, you can’t claim that accommodation, food or work clothes make up part of their wages. You may include those incentives as perks of the job, but you must pay domestic workers at least the minimum wage.
Rights and obligations of employers
Employers must follow the Basic Conditions of Employment Act (BCEA) and the Sectoral Determination for Domestic Workers (SDDW) when employing domestic workers. You must supply a written contract of employment, specifying the terms and conditions of employment, such as working hours, wages, leave entitlements, and the responsibilities of the job. You must also provide a safe working environment and adequate training on duties the worker must perform.
Full-time domestic workers must be registered with the Department of Labour’s Unemployment Insurance Fund (UIF), which includes providing a legitimate contract of employment, proof of payment of UIF contributions and a monthly payslip. Failure to register your domestic worker can result in a penalty or fine.
Rights and obligations of full-time domestic workers
Full-time domestic workers are entitled to the new minimum wage of R25.42 per hour and must be registered as employees. Registration includes contributing to UIF and having a written contract of employment that adheres to the provisions of the BCEA and SDDW. You should also receive a monthly payslip and have a safe working environment with adequate training.
Rights and obligations of part-time domestic workers
Part-time domestic workers are defined as those who work less than 24 hours a month for one employer, and you are entitled to a minimum wage of R22.32 per hour. Like full-time domestic workers, you should have a written contract of employment and be aware of your rights under the BCEA and the SDDA.
Challenges faced by domestic workers
The reality is that many domestic workers in SA struggle with low wages, long working hours, lack of job security and limited access to social-security benefits. They may also lack awareness of their rights under the BCEA and the SDDW, as well as access to legal support when their rights are violated.
Keep detailed records of all UIF payments you make on behalf of your domestic worker
Fines for not registering a domestic worker for UIF vary depending on the specific circumstances, but they can be up to R10,000. In addition to the fine, employers may have to register their domestic worker retroactively and pay any outstanding UIF contributions and other benefits. Legal action or prosecution may also result in more significant fines and potential imprisonment.
Both employers and domestic workers must be aware of their rights and obligations under South African labour laws, specifically the BCEA and the SDDW. By understanding the legal minimum wage for domestic workers, as well as the requirements for employment contracts, payslips, and UIF contributions, both parties can ensure a fair, legally compliant working relationship.
How to register your domestic worker with the Department of Labour for UIF
Follow these steps to register your domestic worker with the Department of Labour for UIF contributions:
1. Check if you qualify
Before you begin the registration process, ensure that your domestic worker qualifies for UIF registration. Domestic workers who work more than 24 hours a month for the same employer must be registered for UIF.
2. Get an employer reference number
As an employer, you must get an employer reference number from the Department of Labour. You can apply online at the UIF eService Portal, or by visiting your nearest Department of Labour centre.
3. Complete the UI-8D form
Download the UI-8D from the Department of Labour website, which is a form specifically for employers of domestic workers. Fill in your details, your domestic worker’s details, and the required information about their employment conditions.
4. Calculate UIF contributions
UIF contributions are calculated as 1% of the domestic worker’s total wage. As the employer, you are also required to contribute an additional 1%. For example, if your domestic worker earns R5,000 a month, both you and your domestic worker will contribute R50 each (totalling R100) a month to UIF. As the employer, you will pay R5,050 a month in total, and your domestic worker will get R4,950.
5. Register your domestic worker for UIF
Submit the completed UI-8D form along with your domestic worker’s certified ID copy or passport and proof of their address to your nearest labour centre or email it to the UIF department at uif@labour.gov.za. Ensure that you keep a copy of the submitted documents for your records.
6. Set up a UIF payment process
Once your domestic worker is registered for UIF, set up a process for making monthly UIF payments. You can do this through the UIF eService Portal or by using the UIF banking details provided on the Department of Labour's website.
7. Keep records of UIF payments
Keep detailed records of all UIF payments you make on behalf of your domestic worker. You are legally required to provide your domestic worker with a payslip each month, which should include their UIF contributions. Store these records in a safe place, as you may need them for future UIF claims or audits.
8. Update any changes
If there are any changes to your domestic worker’s employment conditions, such as an increase in their wages, ensure that you update the Department of Labour. You can do this by sending a new UI-8D form with the updated information.
By following these steps, you can register your domestic worker for UIF and comply with South Africa’s labour laws.