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R20 PER HOUR – R 3 500 PER MONTH – WHAT EMPLOYERS SHOULD DO!!!
Many employers are highly concerned about the announcement yesterday that a National Minimum Wage will apply from 01 May 2018 and we ask “HOW CAN I AFFORD THIS AND WHAT SHOULD I DO?”
First of all we must understand the context of the announcement in that there is a good reason why the announcement is made to regulate the HOURLY RATE as well as the MONTHLY RATE and employers must understand that where your domestic worker works less than 8 hours a day or less than 40 hours per week, or 45 hours over a 6 day period, that you will apply the hourly rate.
A large number of our clients also discovered that when they joined us that they did not fully understand the terms and conditions of the Sectoral Determination 7 which regulates the conditions of employment of Domestic Workers.
The structure of your contract of employment is vitally important and especially the conditions of domestic workers who live-in.
Another benefit that is incorrectly interpreted is transport allowance and benefits such as the provision of food outside working hours.
Assistance with school fees of a child of your domestic worker can also be considered as well as funeral benefits, accident and disability such as our Domestic Comfort Plan where the employer pays for the funeral benefit, accident and disability cover and repatriation of the mortal remains outside 30km.
These benefits form part of the basic salary on condition that it is agreed in writing in the Contract of Employment. The contract of employment is one aspect of the requirement and solution but then there must be a second step in the form of the payslip.
The payslip is the confirmation of the structure of the terms and conditions as agreed between the Employer and the Employee. It confirms the structure of the benefits and how the agreement results into the gross and net pay per month/week/day.
This should not be interpreted that the employer can now attach an unrealistic value to for example accommodation – THERE ARE VERY SPECIFIC REGULATION OF ACCOMMODATION AND THE VALUE THEREOF.
The accommodation must also comply with certain minimum standards and therefore the assistance of an experienced professional is required.
Just to give you some feedback based on the current client base of EDOMESTIX gives you a very positive picture and confirms our view that it is not all “doom and gloom”.
EDOMESTIX have 47% of our clients who are already paying the minimum rate of R20 per hour and more.
If the current rates being paid to the domestic workers registered under EDOMESTIX are increased annually in December 2017 then only 11.17% will still be below the new national minimum wage of R20 per hour or R3500 per month.
What is even more important to take note of is the fact that this 11% is just R1.88 per hour on average below the new minimum wage.
None of our clients are paying below the current minimum wage since we assist and ensure that our client comply with all the legal requirements. IT IS THE RIGHT THING TO DO – ISN’T IT
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R 20 per hour = R 160 per day if your domestic worker works full 8 hours per day excluding her lunch time.
Putting this into perspective as an example means than your domestic worker must work from 07h00 until 16h00 with 60 minutes lunch time and if you consider that a daily rate of R140 per day and R20 taxi fee is currently not uncommon.
The main question is whether you have this structure and agreement in writing and do you provide a payslip?
For any assistance please contact us firstname.lastname@example.org and download our Edomestix App in Google and iStore. Our contact number 071 147 1213 or 079 697 4832
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