The Progressive Domestic Workers Union of South Africa (Prodwusa) is calling on the National Treasury to introduce a pension fund tailored for domestic workers, to ensure they can retire with financial dignity.
Proposal Seeks Financial Security for Vulnerable Workers
According to Mail&Guardian, the union plans to formally present its proposal to the Department of Employment and Labour during a demonstration in Polokwane next month.
Prodwusa Secretary General Thato Reitumetse Maleka said many domestic workers spend their lives serving households, only to face poverty in old age.
“This pension fund will correct that injustice and bring long-overdue recognition to the domestic labour sector,” Maleka said.
According to Statistics South Africa, there are around 850 000 domestic workers in South Africa, most of whom are women. They account for over 5% of total employment.
Proposed Model and Funding Structure
Prodwusa suggests a contribution model similar to the Unemployment Insurance Fund (UIF).
Workers would contribute a percentage of their minimum wage, matched by their employers.
The union proposes that the state also contribute—either matching the worker’s portion or both contributions.
Maleka said many employers are open to the proposal, even if it means negotiating a lower contribution rate for sustainability.
However, Lourandi Kriel, CEO of SweepSouth, an online domestic work platform, warned that securing funding from the state would be challenging.
“I do not envy our finance minister, there are often multiple competing priorities that require funding,” she said.
Tax Incentives and Penalties Proposed
According to SweepSouth’s 2024 report, many domestic workers are drowning in debt, with 83% being primary breadwinners and supporting an average of four dependants.
Prodwusa also wants SARS to incentivise employers who participate in the scheme through tax deductions or rebates.
The union proposes penalties for non-compliance, including audits or possible legal action.
“Employers who refuse to participate should face financial penalties… to prevent labour exploitation,” Maleka said.
Undocumented Workers Face Exploitation
Prodwusa raised concerns about the employment of undocumented migrant workers at below-minimum wages.
Maleka warned this has fuelled a shadow labour market that is both exploitative and unregulated.
However, Prodwusa wrote to Treasury in February 2025 but has yet to receive a response.
The union said it plans to visit the department’s provincial office in Bloemfontein in the coming weeks to follow up.
“This action is about justice, economic fairness, and ensuring domestic workers are no longer ignored,” Maleka said.
Do you think a pension fund for domestic workers would provide much-needed financial security?
Let us know by leaving a comment below or sending a WhatsApp to 060 011 0211.
Also, subscribe to The South African website’s newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
