South Africa’s domestic workers were being hit hard as the inflation and the broader cost-of-living crisis was taking an immense financial and mental toll on them.
This was according to the seventh annual SweepSouth Report on Pay and Working Conditions for Domestic Workers, released this week.
Lourandi Kriel, CEO of SweepSouth, said the figures outlined in the report make for sobering reading.
“They also underline how critical economic reform will be if South Africa is to be a mentally healthy country where all inhabitants live in comfortable dignity,” Kriel said.
The report, which has tracked progress in the pay and working conditions of domestic workers since 2018, also revealed that living costs for the average domestic worker had increased by 15% in the past year, dwarfing the 5% earnings increase they accrued over the same period.
Additionally, it showed that issues that arose at the height of the Covid-19 pandemic, including lower job availability, remained stubbornly persistent.
The 2024 SweepSouth Report draws on survey responses from more than 5 600 workers, and revealed that the domestic workforce remained predominantly female (92%), with most workers between the ages of 26 and 41 (64%).
It also underlined the critical role that domestic workers play within their communities, with 83% as the sole financial support within their household. The average number of their dependants remained high at four, underscoring their immense financial responsibility.
Adding to that financial burden were rising costs across almost every category. While the effects of inflation were said to be well documented, housing costs, in particular had risen disproportionately, warranting further investigation.
The lingering effects of the Covid-19 pandemic were also evident in the domestic work sector, which had stabilised at around 850 000 jobs, marking a 15% reduction from its pre-pandemic peak.
Chaz Jaftha, head of credit and analytics at short-term lender Wonga, said with so many domestic workers being unbanked and unable to access regulated financial products, they were at huge risk when it came to economic pressures such as rising inflation.
“Being unbanked, the increased cost of living may have forced many domestic workers towards informal and unregulated ‘Mashonisa-style’ loans which are often very expensive and operate outside of regulated legislative frameworks,” Jaftha said.
“As a result, when a domestic worker has their hours cut or loses their job entirely, they have no protection from informal lenders who do not offer credit insurance products with their loans, which then exacerbates the issue further.”
SweepSouth said it was small wonder then that job losses remain a major threat for many local domestic workers. It said here, the cost-of-living crisis had exacerbated things too, with 36% of employed respondents reporting losing some work due to employer affordability, while 21% of respondents lost full employment in the past year due to affordability (25%); and employer relocation (34%).
Financial insecurity was also widespread, with 75% of respondents unable to save money monthly. While there was a positive trend towards savings and pension participation, 35% of domestic workers were in debt, with a third feeling trapped in a hopeless repayment cycle.
This deep-seated financial stress has a significant impact on the mental health of domestic workers too. Some 16% of respondents reported a decline in the past year, primarily due to unemployment, financial stress, and family problems. Access to professional mental health treatment remains limited, leaving many to cope without adequate support.
When it comes to addressing these challenges, SweepSouth suggested enforcing labour laws more rigorously and exploring innovative solutions for compliance in private homes, considering diverse work arrangements, and vulnerable groups.
The company added it believed that it was important to improve access to ongoing education and training for domestic workers.
“Government, employers, and the private sector must collaborate to provide affordable education, flexible scheduling, financial assistance, and technology access for domestic workers,” Kriel said.
SweepSouth Group chief operations officer, Luke Kannemeyer, said the 2024 report underscored the complexities and challenges within South Africa’s domestic work sector.
“While positive trends in earnings and savings offer glimmers of hope, the persistent issues of low wages, job insecurity, safety concerns, and mental health struggles highlight the urgent need for collaborative action,” Kannemeyer said.
He added the data in the report only captured part of the consequences of job losses, which could push domestic workers and their families into precarious circumstances. Navigating the challenges ahead would require strong leadership and decisive action.
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