Coming changes for domestic workers in South Africa

rh1

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People who pay anything less than R175 (+ transport) should be ashamed of themselves tbh.
And thats is why we dont have a domestic, even if you need a person a few times, the laws makes it too much of a hassle. Too many stories, rather not go down that rabbit hole. Where do need , we get a cleaning service, but we have not used a cleaning service since about 2 years ago.

A maid is a luxury for most households, most of us are not living in mansions, but normal 3/4 bedroom houses. So cleaning the house is actually very easy.
 

Mista_Mobsta

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This is actually the point. As an employer of a domestic you are not allowed to deduct their wage from my income tax, just like every other employer is allowed to do. Why not?
Sure it would go a long way to balance things out.
You are the only person to really ask the correct question! Why can't we have tax breaks as domestic employers? We are paying them with after tax funds as it stands whilst still adhering to UIF/Contracts etc etc...
 

rh1

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You are the only person to really ask the correct question! Why can't we have tax breaks as domestic employers? We are paying them with after tax funds as it stands whilst still adhering to UIF/Contracts etc etc...
Not a tax person but I think it is because of the rule it is only tax deductible, if it is in the production of income. I.e. a cleaning service can deduct but not a normal person. But where the grey area is, quite a few business employs directly or use a cleaning service which they deduct for tax, but one could argue it is not in the production of income.
 

Mista_Mobsta

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Not a tax person but I think it is because of the rule it is only tax deductible, if it is in the production of income. I.e. a cleaning service can deduct but not a normal person. But where the grey area is, quite a few business employs directly or use a cleaning service which they deduct for tax, but one could argue it is not in the production of income.
That would make a heck of a lot of sense. The problem comes in when you red-tape doors shut due to overly complicated laws which help turn people to move away from employing someone. Sure, laws are needed to protect domestic employees but the benefit vs cost ratio for average Joe out there is running pretty steep. Bring the correct tax benefits in and watch how domestic employment skyrockets!
 

Big Rat

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My sister in law came form Kimberley, moved into a house in Vredenburg. The previous owners had a maid, live in, own room with kitchen and bathroom, seperate entrance. When my sister was finalising the last part of her move down the previous owner rather casually informed her that the maid will be staying on.
Everything came to a screeching halt. SIster said she bought a house, not a main, and with all the rules and regulations lately she has no interest in a maid, especially given the state of the house when she flew down for a check.
Maid had to go, and the previous owner had to sort it out. bit of a whaffle but it was done.
 

Benedict A55h0le

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My sister in law came form Kimberley, moved into a house in Vredenburg. The previous owners had a maid, live in, own room with kitchen and bathroom, seperate entrance. When my sister was finalising the last part of her move down the previous owner rather casually informed her that the maid will be staying on.
Everything came to a screeching halt. SIster said she bought a house, not a main, and with all the rules and regulations lately she has no interest in a maid, especially given the state of the house when she flew down for a check.
Maid had to go, and the previous owner had to sort it out. bit of a whaffle but it was done.
Ripe for ewc picking.
 

comanche

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You are the only person to really ask the correct question! Why can't we have tax breaks as domestic employers? We are paying them with after tax funds as it stands whilst still adhering to UIF/Contracts etc etc...
What about everyone now working from home? If you have someone who is cleaning your study/office, wouldn't that now fall under a working environment?
 

Zukat

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How about leaving it to democratic capitalism, that I assume most labour market "specialists" here are in support of, and letting the market decide what should be the salary, like for any other good or employee in the economy- supply=demand (willing worker for a willing wage), if we look at the recent example in the US, McDonalds had to increase salaries because no one wanted to come to work and rather opted to receive unemployment grants. How is this different?
 

D tj

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The government, whilst helping in some ways ...UIF....is slowly making them less employable by regulation.
 

Johnatan56

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Not a tax person but I think it is because of the rule it is only tax deductible, if it is in the production of income. I.e. a cleaning service can deduct but not a normal person. But where the grey area is, quite a few business employs directly or use a cleaning service which they deduct for tax, but one could argue it is not in the production of income.
One can argue that customers expect to walk into a clean place and if it's dirty they'll lose business.
 
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