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DOMESTIC workers will no longer be subjected to meagre salaries as the government hasadjusted the minimum wage for domestic workers, with effect from December last year.The announcement was made by the Department of Labour Minister Mildred Oliphant and itcoincided with the signing into law of the National Minimum Wage Bill by President CyrilRamaphosa.According to the Department of Labour’s new rates, domestic workers working in Area A (biggermetropolitan areas) who work more than 27 ordinary hours per week, must be paid a minimumof R13,69 per hour.Workers who work fewer than 27 hours per week, must be paid a minimum of R16,03 per hour.This will mean that a domestic worker who works 45 hours per week will now earn a minimum ofR2 669,24 a month.Gardeners, drivers or people who look after children, the aged, sick, frail or disabled in a privatehousehold, all qualify as domestic workers.With the aid of a diagram, discuss the welfare effect of this new legislation if the new minimumwage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labourhours as your quantity variable. |
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