Giving your domestic worker a pay rise: how much, when, and what it really costs

The minimum wage rises every 1 March, and for many households that is the only time pay is discussed. But the minimum is a floor. A good employee who has been with you for years is usually paid above it, and the question of when and by how much to raise that pay is left entirely to you. This guide covers what the law does and does not require, how to choose a number, and what it costs.

What the law requires, and what it leaves to you

• The floor is the national minimum wage. From 1 March 2026 that is R30.23 an hour. Whatever you pay, the hourly rate may not fall below it.
• When the minimum rises, you must lift pay to at least the new rate from the date it takes effect. Our guide to the March 2027 review shows how to prepare.
• There is no fixed yearly percentage. If you already pay above the new minimum, the Act does not tell you to add a further amount each year.
• Your contract or past practice can create a duty. If the written contract promises an annual review, or you have raised pay every January for years, your employee may reasonably expect it. Check the contract before you decide.
• A pay cut needs agreement. You cannot reduce pay unilaterally, and never below the minimum. See loans, advances and deductions for what you may and may not take off.

How to choose a fair figure

Pick a method and apply it the same way each year, so the conversation does not start from nothing.

• Match inflation as a starting point. A raise below the consumer price inflation rate is a cut in real buying power, even though the rand figure goes up. Check the latest Stats SA CPI release and compare.
• Follow the minimum wage increase. Many households pass on the same percentage as the national minimum wage change, which is easy to explain and easy to defend.
• Reward length of service. Someone who has worked for you for ten years carries knowledge of your home, children and routines that a new hire does not. A service step on top of the base raise is a common way to recognise that.
• Look at the whole package. Transport money, food, a uniform, a December bonus and extra leave are all part of what you give. Weigh them together. See the December bonus guide.

Worked example: a 5% raise on the minimum

Take an employee on the current full-time minimum of R5,894.85 a month, and a raise of 5%.

• New gross pay: R5,894.85 x 1.05 = R6,189.59 a month, an extra R294.74.
• Employee UIF at 1% comes off the new figure: about R61.90 a month, so about R2.95 of the raise goes to UIF.
• Income tax: pay at this level sits below the tax threshold, so no PAYE is deducted.
• Your extra monthly cost: the R294.74 plus your own 1% UIF on it, about R2.95, so roughly R297.69 a month, or R3,572 a year.

Try your own numbers below. Enter the current salary and the percentage you are considering:

Open the salary increase calculator on CalcSA if the box above does not load.

For the full monthly cost including leave, UIF and COIDA, see what a domestic worker costs in 2026.

Putting the raise in place properly

• Tell your employee in advance, with the new amount and the date it starts. A raise announced on payday with no notice feels like an accident.
• Put it in writing. A short signed note or a contract addendum is enough. It protects both of you if the figure is ever questioned.
• Update the payslip and the UIF declaration from the first month at the new rate. See what must be on the payslip and UIF, step by step.
• Recalculate leave and overtime rates. Both are paid at the current rate, so they rise with it.
• Review on a fixed date. Choose one month, such as March when the minimum changes, and keep to it.

Common mistakes

• Counting the minimum wage increase as a favour. If the old pay now falls below the minimum, lifting it is a legal duty, not a raise.
• Raising the monthly amount but not the hourly rate when hours have crept up. Divide monthly pay by actual hours worked to check you are still above R30.23.
• Paying the raise in cash with no record. It makes UIF and any later dispute harder to settle.
• Skipping the raise for years and then making up the whole gap in one go. Smaller yearly steps are easier on the budget and on the relationship.

General information, not legal advice. Every figure we use is on the rates page with its source.