Domestic worker salary in South Africa has increased significantly — here's how much you should be paying

The Department of Employment and Labour has published the new National Minimum Wage for South Africa.

The minimum wage will be increased by 9.62% for the year, bringing the current figure to R25.42 (up R2.23 from R23.19 before).

Agricultural labourers, like domestic workers, will be paid a minimum wage in line with the rate. Workers in extended public works programmes, on the other hand, will be paid a lesser wage of R13.97 per hour.

Domestic workers in South Africa should get a 9.6% pay increase as a result of the increased minimum wage. Calculated at 8 hours per day, the monthly salary for domestic employees (160 hours per month) should rise from about R3,700 to R4,100, representing an R400 increase.

Nonetheless, most occupations paying the minimum wage would see their salaries rise to R1,144 per week (45 hours) or R4,957 per month, according to the government (195 hours).

The rise in the minimum wage was greater than predicted.

As the department began talks on the rise, it planned for an 8% increase, somewhat ahead of CPI, which had been around 7% for several months and had just dropped to 6.9% in January.

In 2023, the CPI is predicted to average between 5% and 6%.

Despite an above-inflation increase in the national minimum wage, South African low-income earners are projected to experience substantial price pressure this year.

Most notably, while headline inflation is slowing and approaching the South African Central Bank’s target range of 3% to 6%, food prices in the country are trending in the other direction, remaining persistently high.

According to the most recent Stats SA inflation figures, the annual food inflation rate rose to 13.4% in January, the highest number since April 2009, when it was 13.6%.

Bread and cereals had the greatest rate of inflation in the CPI basket in January (21.8%). This represents an increase from 20.6% in December and the highest figure for this category since February 2009 (23.8%).

Bread & cereal products that recorded notable monthly increases in January include pastry products (pizzas and pies), which increased by 3,6%, maize (up 3.1%), and brown bread (up 1.3%).

Meat inflation climbed to 11.2% in January, up from 9.7% in December. Individually quick frozen (IQF) chicken parts, the most expensive meat product, with a 2.7% monthly price rise between December and January.

All of these necessities are significantly more expensive than the increase in the minimum wage.

Food purchases account for a large amount of lower-income households’ monthly spending, with research from the Pietermaritzburg Economic Justice and Dignity organisation revealing that a nutritious basket of food costs a household more than R4,900 per month – R800 more than the new monthly minimum.

This is before you consider additional necessities such as hygiene items, transportation, and energy.

Energy rates are another key area of contention, with energy regulator Nersa recommending an 18.65% increase in electricity pricing for Eskom direct consumers beginning 1 April 2023 – with much greater rises likely from municipalities beginning 1 July 2023.

The national minimum wage would have had to be increased by 11.8% to just absorb the upcoming power price increase, according to the PMBEJD.