By: Natasha Archary
Gugulethu Mfuphi talks about the new Minimum Wage increase for domestic workers which came into effect on 1 March.
Domestic workers can now expect a 20% salary increase. This means that domestic workers will for the first time be paid more than R20/hr.
Addressing the issue of financial affordability for households and small businesses that employ domestic workers, Kaya Biz broke down what the increase means for employment equity.
While the news of the Minimum Wage increase has been welcomed by government, business feels the increase could lead to more job losses.
Given the current economic climate in the country during the pandemic, business feels the hike will add further strain to operational costs.
This could mean some employers reducing the hours of domestic workers or retrenching workers altogether.
The increase comes after the commission recommended salaries for domestic workers be adjusted to match that of the National Minimum Wage.
A tough economic climate in SA at present could mean the increase hits cash-strapped households which leaves them unable to secure the employment of their domestic workers.
South Africans were hit with another steep increase in petrol on Wednesday. With the cost per litre now over R21, further increases to average household expenditure may not be financially sustainable.











