Minimum wages for domestic workers: a comprehensive analysis

Abstract

This article investigates the impact of a minimum wage for domestic workers on employment levels. A comparative analysis of two surveys undertaken in a Bloemfontein suburb challenges the Minister’s statement that the newly announced minimum wages for domestic workers in South Africa are “not only affordable but very realistic”. The analysis indicates that the demand for domestic workers is decreasing and that minimum wages could aggravate the situation. The wages of domestic workers vary not only between areas, but also within areas. Therefore, if job losses occur, rural and full-time domestic workers will be most affected. COSATU’s proposal that minimum wages should be set not according to geographical differentials, but according to work performed, seems meritorious.