Employers in South Africa who hire domestic workers for 24 hours or more per month are legally required to register them with the Unemployment Insurance Fund (UIF), with government warning that failure to comply could result in significant financial penalties.
The reminder was issued this week by Aggy Moiloa, Inspector-General at the Department of Employment and Labour, during the National Policy Dialogue on Strengthening the Protection of Human Rights of Workers in the Informal Economy in Pretoria.
Moiloa stressed that UIF registration is a legal obligation rather than a voluntary choice.
“If you employ a domestic worker for 24 hours or more a month, you must register them with UIF. It’s not optional; it’s a legal obligation,” she said.
The requirement applies to household employers across South Africa and forms part of broader labour legislation designed to extend social protection to workers in the domestic sector.
The UIF provides temporary financial assistance to eligible employees who lose their jobs because of dismissal, retrenchment or the expiry of employment contracts. It also offers maternity benefits, illness benefits and financial support to dependants following the death of a contributor.
Employers Share Responsibility For UIF Contributions
Under current UIF rules, total monthly contributions equal 2% of an employee’s gross remuneration.
One percent is deducted from the domestic worker’s salary, while the employer contributes the remaining one percent.
Government warned that employers who fail to register eligible domestic workers or who do not comply with labour legislation could face substantial penalties, with fines reaching as much as R500,000 in serious cases.
Information on registration procedures and contribution requirements is available through the Department of Employment and Labour.
Officials have continued encouraging household employers to ensure they remain compliant as labour inspections increasingly include workers employed in private homes.
Minimum Wage Increased From March 2026
The reminder comes only months after the government implemented South Africa’s new national minimum wage.
Effective from 1 March 2026, the minimum wage increased by 5%, raising the hourly rate from R28.79 to R30.23.
The increase applies to both permanent and casual employees, including domestic workers.
For a domestic worker employed for a standard 45-hour work week, the new minimum wage translates to approximately R1,360.35 per week and around R5,894.40 per month, based on an average of 195 working hours over a 4.3-week month.
Government said the adjustment was calculated using the Consumer Price Index (CPI) of 3.5%, together with an additional 1.5 percentage points.
The Department of Employment and Labour has urged employers to review employment contracts, ensure minimum wage compliance and keep UIF registrations up to date to avoid possible legal action.
Source: South African Department of Employment and Labour.