COIDA

EMPLOYING A DOMESTIC WORKER?

HERE ARE YOUR RESPONSIBILITIES

Dear NEASA subscriber

If you employ a domestic worker

(regardless of the hours)

 you are an employer and therefore legally compelled to register with and contribute to certain funds.

1. Compensation Fund 

All employers of domestic workers must register with the Compensation Fund.
 
The term “domestic worker” includes a worker, a gardener, a driver of a vehicle, and a caretaker in a private household.

Despite the majority of domestic workers not having a written contract of employment, they remain formal employees and their employers must adhere to the relevant labour and employment laws.

Registering with the Compensation Fund will serve as a type of “insurance”, should your domestic worker suffer any injuries or diseases on your premises. Employers of domestic workers must pay 1.04% of their domestic worker(s) annual earnings to the Compensation Fund.

If the return on earnings (1.04%) of the domestic worker is less than the minimum assessment amount charged by the Compensation Fund, the minimum assessment amount will apply. The proposed minimum assessment amount for 2024 is R528, but this has not been gazetted yet and may be subject to change.

If a domestic worker is injured, contracts a disease, or passes away due to an injury or disease contracted at their workplace, and the employer is not registered with the Compensation Fund, that employer will be held liable for all expenses emanating from the injury, disease, or death. This could financially ruin an employer.  

For assistance with the registration with the Compensation Fund, send an email to coid@neasa.co.za.

2. Unemployment Insurance Fund (UIF) 

Registering your domestic worker with the UIF is compulsory if he/she works for you for more than 24 hours a month. 1% of the employee’s monthly wages must be deducted and paid over to the UIF, together with another 1% contributed by the employer.  

3. National Minimum Wage 

All domestic employees, regardless of the number of hours worked per day, week, or month, are entitled to the National Minimum Wage, currently R27.58 per hour, and are entitled to a minimum of 4 hours pay, irrespective of the hours worked for the day.

If an employer is found to be non-compliant with any of the above Acts, a fine may be imposed upon that employer.

Image of ironing lady: The South African
For more information
NEASA Media Department
media@neasa.co.za