All you need to know about the new laws for domestic workers in SA

Here is what you need to know about the new laws for domestic workers in South Africa. These laws were signed into law in April 2023.

HERE IS WHAT YOU NEED TO KNOW ABOUT THE NEW LAWS

The biggest change is that domestic workers are now considered formal employees under the Compensation for Occupational Injuries and Diseases Act (COIDA).

Anyone employing a domestic worker must comply with the relevant laws.

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ANYONE EMPLOYING A DOMESTIC WORKER MUST COMPLY

Here is what you need to know about the new laws:

• The Compensation Fund will start accepting claims from domestic workers and their dependents for injuries or deaths resulting from work-related accidents.
• Any employee who works more than 27 hours per month must be registered with the Unemployment Insurance Fund (UIF), including domestic workers.
• A total of 2% of the employee’s salary must be paid to UIF each month – 1% has to be paid by the employer, and the other 1% may be deducted from the employee’s wages.
• Workers must be covered against occupational diseases, injuries, and death. Employers must register with the Compensation Fund and submit annual returns.
• Employers pay an annual contribution to the fund based on an employee’s total earnings for the year.

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HERE IS WHAT THE TOTAL EARNINGS INCLUDE

What does the total earnings for the year include:

• Overtime;
• Bonuses paid;
• Commission;
• The cash value of food and quarters supplied as part of their remuneration package;
• The cash value of fringe benefits;
• Travel and other allowances; and
• Any other remuneration in cash or kind to an employee as part of their contract.

HERE IS WHAT THE TOTAL EARNINGS EXCLUDE

What do the total earnings for the year exclude:

• Reimbursive payments;
• Non-recurring payments for specific tasks outside normal duties;
• Intangible fringe benefits;
• Payments to cover special expenses; and
• Other non-recurring or occasional payments.

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EMPLOYERS ARE REQUIRED TO SUBMIT A STATEMENT OF EARNINGS PAID

Employers are required to submit a statement of earnings paid to all their workers – typically from the beginning of March to the end of February. The latest gazette changes this to 30 June 2023 for the 2022 assessment.

For the 2023 assessment, the relevant period is 28 February 2023 to 31 March 2024.

This article was originally published by Corné van Zyl.