A new minimum wage will come into effect on December 1, 2016.

In accordance with the Basic Conditions of Employment Act, 1997 (BCEA), the Minister of Labour may make a sectoral determination establishing basic conditions of employment for employees in a sector and area. This includes setting minimum terms and conditions of employment, including minimum rates of remuneration. Minimum wages are set through sectoral determinations especially for vulnerable sectors; the sectors, which have low union density or where market wages are low. Domestic workers are considered to be vulnerable.

On Monday, November 7, 2016, the Minister of Labour, Mildred Olifant announced (PDF) that the minimum wage for domestic workers, including housekeepers, gardeners, nannies and domestic drivers, will be increased from December 1, 2016 and will be applicable until November 30, 2017.

The increase to the minimum wage is determined by the location of the premises at which the work is conducted. Domestic workers who work more than 27 ordinary hours per week will earn not less than:

• R2 422.54 per month, R559.09 per week or R12.42 per hour in metropolitan areas, which represents an 8.2% increase from the previous year;
• R2 205.17, R508.93 per week or R11.31 per hour in non-metropolitan areas. This is a 10% increase from the previous year. 

Domestic workers who work less than 27 ordinary hours per week will receive:

• a R14.54 hourly rate, a R392.58 weekly rate and a R1 701.06 monthly rate in major metropolitan areas, which represents an 8.2% increase;
• a R13.53 hourly rate, R360.54 weekly rate and R1 562.21 monthly rate in non-metropolitan areas, which is a 10% increase.