Union demands pension fund for domestic workers

The Progressive Domestic Workers Union of South Africa (Prodwusa) wants the treasury to develop a pension fund for domestic workers so they can retire with a measure of financial security.

- Umamah Bakharia

The union is still drafting the proposal and will hand it over to the department of employment and labour during a demonstration next month on the plight of domestic workers.

Thousands of these workers dedicate their lives to serving households, but end up with no safety net after decades of service, Prodwusa secretary general Thato Reitumetse Maleka said, adding: “This pension fund will correct that injustice and bring long-overdue recognition to the domestic labour sector.”

About 850 000 people, mainly women, are employed as domestic workers, contributing 5.2% to total employment, according to Statistics South Africa.

Prodwusa proposes that the pension fund formula be similar to the Unemployment Insurance Fund (UIF) model to ensure workers receive “a little extra” — much like a provident fund. It says domestic workers registered under the union qualify for UIF, but the amount “is not enough security for them when they retire”.

Therefore, the contribution structure for the pension fund will require the worker to contribute a fixed percentage of the minimum wage and the employer to match that contribution. The government will be asked to either match both contributions, or an amount equivalent to what the worker has put in.