Weighing proposed minimum wage

THE National Minimum Wage Commission has proposed a 1% increase in the national minimum wage.

This comes after the commission’s annual review – where it proposed this year that the domestic workers’ minimum wage be equal to the national minimum wage in 2022.

The current minimum wage for domestic workers is R19.09 an hour (R2 660 a month), while the national minimum wage is R21.69 an hour (R3 036 a month).

Weighing in on the proposed increase in the minimum wage, Professor Irrshad Kaseeram, an economist, said this proposal was on the cards for three years. He said this meant there could be a 20% increase in domestic workers’ minimum wage.

Kaseeram said the proposed rate was a bit steep for lower-income households but affordable for high-income households.

“Usually, what low-income households do is try to compensate with food or non-monetary compensation to make up for the shortfall.

“The wealthier households, on the other hand, can afford it, and there might not be a need for compensation like low income households, because they can afford the full salary.

“Another thing low-income households could do is shorten the working hours for their employees. So the employee would work two days a week instead of three, reducing the number of working days so the amount of time devoted sticks within the budget, and that is likely to happen."

Kaseeram said these methods were unfair on the employee.

“This is inefficient, because from an economic point of view, the most fair salary they can get is the wage rate, because the domestic workers are already living under their expenses in meeting their daily living expenses.”

He also said this increase does not encourage an uptake of more full-time domestic workers. “Households will rather opt for casual labour arrangements, with domestic workers being employed fewer days a week. Hence the South African labour market for unskilled/semi-skilled workers will remain bleak until the economy grows in excess of 3.5%, perhaps two to three years down the line,” said Kaseeram.

Domestic workers’ unions welcomed the proposed wage increase. They said even though it still would not meet their living expenses, it was better than the current wage.

Myrtle Witbooi, the general secretary of the South African Domestic Services and Allied Workers Union, said: “A worker only works four to five hours a day. The amount she gets paid in a single shift is not even enough to pay for taxi fare for her to make extra money on the hours she is free and not working.

“If she gets paid R19.09 an hour and works five hours, then she is getting just below R100 for a shift, yet taxi fare would cost approximately R55 from her home to her work place.”

Witbooi said their only concern now was the implementation of the proposed wage.

Pinky Mashiane, an executive member of the United Domestic Workers of South Africa, said the proposed wage comes with other concerns.

“Though it is not a living wage, for underpaid and exploited domestic workers it’s something. The other concern is about the implementation and enforcement, because in the past nobody ensured that employers were complying, and as a union, we raised it with the Labour Department.

“In some cases, where domestic workers were dismissed, they don’t allow us to speak with their employers because they fear victimisation and further mistreatment,” she said.

The Department of Labour and Employment gazetted the proposal and opened it up for public comment.

“Section 6 of the National Minimum Wage Act of 2018 requires that the National Minimum Wage Commission “review the national minimum wage annually and make recommendations to the minister on any adjustment of the national minimum wage”.

“The act mandates that the commission’s review report to the minister must reflect alternative views, including those of the public,” reads the gazette.

Rose Mnyandu, a domestic worker said they are glad to hear that their rights as domestic workers are advocated.

“Our industry is hard as it is considered to be unprofessional. Sometimes one would work without a contract, which leaves more ground to be exploited,” she said.

Mnyandu said the only way she can earn a salary that is almost enough for her to meet her expenses is working two jobs. “The minimum wage is not enough at all, even with the increase. I would still have to keep the two jobs so I can afford all my expenses,” she said.