The Progressive Home Employees Union of South Africa (Prodwusa) is asking on the Nationwide Treasury to introduce a pension fund tailor-made for home staff, to make sure they will retire with monetary dignity.
Proposal Seeks Monetary Safety for Weak Employees
In line with Mail&Guardian, the union plans to formally current its proposal to the Division of Employment and Labour throughout an indication in Polokwane subsequent month.
Prodwusa Secretary Normal Thato Reitumetse Maleka stated many home staff spend their lives serving households, solely to face poverty in previous age.
“This pension fund will appropriate that injustice and convey long-overdue recognition to the home labour sector,” Maleka stated.
In line with Statistics South Africa, there are round 850 000 home staff in South Africa, most of whom are ladies. They account for over 5% of complete employment.
Proposed Mannequin and Funding Construction
Prodwusa suggests a contribution mannequin just like the Unemployment Insurance coverage Fund (UIF).
Employees would contribute a proportion of their minimal wage, matched by their employers.
The union proposes that the state additionally contribute—both matching the employee’s portion or each contributions.
Maleka stated many employers are open to the proposal, even when it means negotiating a decrease contribution charge for sustainability.
Nevertheless, Lourandi Kriel, CEO of SweepSouth, an internet home work platform, warned that securing funding from the state can be difficult.
“I don’t envy our finance minister, there are sometimes a number of competing priorities that require funding,” she stated.
Tax Incentives and Penalties Proposed
In line with SweepSouth’s 2024 report, many home staff are drowning in debt, with 83% being main breadwinners and supporting a mean of 4 dependants.
Prodwusa additionally needs SARS to incentivise employers who take part within the scheme by way of tax deductions or rebates.
The union proposes penalties for non-compliance, together with audits or potential authorized motion.
“Employers who refuse to take part ought to face monetary penalties… to stop labour exploitation,” Maleka stated.
Undocumented Employees Face Exploitation
Prodwusa raised issues in regards to the employment of undocumented migrant staff at below-minimum wages.
Maleka warned this has fuelled a shadow labour market that’s each exploitative and unregulated.
Nevertheless, Prodwusa wrote to Treasury in February 2025 however has but to obtain a response.
The union stated it plans to go to the division’s provincial workplace in Bloemfontein within the coming weeks to observe up.
“This motion is about justice, financial equity, and making certain home staff are now not ignored,” Maleka stated.
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