The Department of Employment and Labour has officially announced the new National Minimum Wage (NMW) for 2025, increasing the hourly pay for workers across various sectors.
As of 1 March 2025, the minimum wage will be R28.79 per hour, reflecting a 4.4% increase from the 2024 rate of R27.58 per hour. This adjustment is in line with inflation and aims to ensure fair compensation for workers.
Who Does the New Wage Apply To?
The updated wage applies to all workers, including domestic and farm workers. However, there are exceptions:
- Workers in the Extended Public Works Programme will receive a reduced rate of R15.83 per hour.
- Contract cleaners in major municipalities will earn a higher wage of R31.69 per hour.
For most jobs, this translates to:
- R1,295.55 per week (based on a 45-hour workweek)
- R5,613.62 per month (calculated over 4.3 weeks)
Impact on Domestic Workers
The wage hike is a positive step for domestic workers, ensuring they receive fair pay. However, the industry remains under pressure due to economic challenges faced by private households—South Africa’s largest employers of domestic workers.
Job Losses and Economic Struggles
Data from the Quarterly Labour Force Survey (QLFS) highlights the struggles of the domestic worker sector:
- While there was a slight increase in jobs in late 2024, the sector remains 150,000 jobs below pre-pandemic levels.
- Before the COVID-19 pandemic, the sector employed over 1 million workers, but recovery has been slow.
Household financial strain has played a major role in these trends. Research from financial institutions shows that domestic help is one of the first expenses to be cut when families face financial difficulties. High inflation, slow economic growth, and rising interest rates have only intensified these challenges.
The Impact of Emigration
Another significant factor affecting domestic worker employment is emigration. Many South African families have relocated overseas, leading to job losses in the sector.
According to SweepSouth’s 2024 Domestic Worker Report:
- 21% of domestic workers lost their jobs between 2023 and 2024.
- 25% of job losses were due to employers being unable to afford wages, a consistent trend from previous years.
- 34% of job losses were due to employers moving homes, down from 40% in 2023 but still significantly high compared to pre-2022 levels.
Do Domestic Workers Actually Earn the Minimum Wage?
Although the law mandates that domestic workers earn at least R28.79 per hour (or over R5,600 per month for full-time work), real-world wages tell a different story.
SweepSouth’s data shows that many domestic workers earn far below the legal minimum:
- Women earn an average of R3,349 per month
- Men earn an average of R3,059 per month
