How much should you be paying your domestic worker?

If you employ a domestic worker, you are their employer. This means you have the same responsibilities to them that you would have to any other type of employee. You owe them exactly the same level of clarity, communication and fairness that you would expect in your own job.

This means:

• Have a written contract. Even for part-time arrangements or if your employee is a foreign national. It should include notice periods, leave, annual increases, and all the nitty gritty that avoids future misunderstandings. Give your domestic worker a copy of this document. Even if they can’t read, they will know people who can. There's a simple contract template on page 18 here.
• Pay them fairly. This is not the place to scrimp. Here is a useful calculator to make sure you're paying your domestic worker a (real) living wage.
• Follow the law. Domestic working relationships are governed by clear rules, and you need to know them. For instance, if there’s a public holiday on a Monday and that’s the day your domestic worker usually works, you can’t require that they work that day (you must pay them anyway). If they do agree to work on a public holiday, they must be paid double. The Department of Labour has an excellent, clear summary about the rules you need to know.
• If they work more than 24 hours a month for you, you’re legally required to register them for UIF (the Unemployment Insurance Fund) and COIDA (the Compensation Fund). Here's a guide.

If you’ve employed a domestic worker for many years, think about putting money away for a retirement package. There is no legal requirement to do this, but it’s common practice and the right thing to do. Sanlam offers retirement packages especially tailored for domestic workers. BUT, a domestic worker is likely earning less than the income tax threshold, so another good option is simply to open up a regular investment account at EasyEquities for them in their name.

If you have no ability to save extra for them, make sure you’ve communicated this clearly so they can make plans.