Employers urged to comply
Domestic employers registered with the Unemployment Insurance Fund should start adjusting their UIF contributions in line with the new minimum wages for the sector.
The Department of Labour has called on employers to do so by January 7 next year.
The department said that records indicated that there were more than 550000 domestic employers in the country who needed to abide by the law.
It was announced last week that wages for domestic workers should be increased by 9,3percent for employees working more than 27 hours a week in higher paid or urban areas.
The department said the contributions were effective from December 1. Domestic workers earning R1066,83 would now receive R1166,05 a month.
Domestic workers in rural areas are now expected to earn R946,04 from the previous R865,54 a month.
UIF spokesman Kgomotso Sebetso said not only were domestic employers expected to adjust their minimum rates, but they needed to adjust their UIF contributions as well.
"Domestic employers are also required by law to inform the UIF of these changes by submitting a new completed UIF form 19 before January 7 next year.
"It is advisable for employers to start updating their records with the UIF immediately and avoid the last minute rush," Sebetso emphasised.
Sebetso said employers were expected to deduct 1percent from domestic workers' pay. The other percentage would come from employers themselves. The 2percent would then be remitted to the UIF.
"The applicable 2percent contribution in line with the new minimum wage is R23,32 for urban areas and R18,92 for rural areas," said Sebetso.
He also warned employers against failing to submit the latest information pertaining to their workers, saying it was a punishable offence.
An offender faces a jail term or a fine or both punishments may be meted out simultaneously.
"We want to take this opportunity to urge all employers to ensure that they register their workers with the UIF as the fund contributes to the alleviation of poverty by providing effective short-term insurance against job loss."
He said the UIF had to date registered more than 632000 domestic workers compared to the previous financial year.