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Salary Increase Letter for a Domestic Worker (with Template)
Every March the national minimum wage changes, and every year household employers face the same questions: must I give an increase, how much, and how do I record it properly? This guide separates the legally compulsory adjustment from the voluntary merit increase, and gives you a complete increase letter you can fill in, print and sign today.
Last reviewed June 2026 · wage figures from 1 March 2026
SALARY INCREASE LETTER — DOMESTIC EMPLOYEE
From (employer): [EMPLOYER FULL NAME]
Address: [EMPLOYER ADDRESS]
To (employee): [EMPLOYEE FULL NAME]
Position: [E.G. DOMESTIC WORKER / NANNY / GARDENER]
Date: [DATE OF LETTER]
Dear [EMPLOYEE FIRST NAME],
1. CURRENT WAGE. Your current wage is R[CURRENT AMOUNT] per [HOUR / WEEK / MONTH], based on [NUMBER] ordinary working hours per week.
2. NEW WAGE. With effect from [EFFECTIVE DATE], your wage increases to R[NEW AMOUNT] per [HOUR / WEEK / MONTH]. This equals an hourly rate of R[NEW HOURLY RATE], which is not less than the national minimum wage of R30.23 per hour in force from 1 March 2026.
3. REASON FOR THE INCREASE. This increase is given as: [TICK ONE]
( ) the annual adjustment required by the change in the national minimum wage; and/or
( ) a merit / cost-of-living increase decided by the employer.
An increase in one year does not create a right to the same percentage in future years, except that your wage will never be less than the national minimum wage from time to time.
4. EFFECT ON OTHER PAYMENTS. From the effective date, your overtime rate (1.5 times the ordinary rate, where overtime is agreed), pay for work on public holidays, paid leave and the UIF contributions (1% deducted from your pay and 1% paid by the employer) will all be calculated on the new wage.
5. ALL OTHER TERMS UNCHANGED. All other terms of your employment contract dated [DATE OF ORIGINAL CONTRACT] remain unchanged. This letter forms part of that contract and replaces only the wage clause.
6. RECORDS. A copy of this letter will be kept with your pay records, and your next payslip will reflect the new wage.
Signed (employer): ______________________ Date: [DATE]
ACCEPTANCE BY EMPLOYEE
I confirm that this letter was explained to me in a language I understand and that I accept the new wage.
Signed (employee): ______________________ Date: [DATE]
Two different kinds of increase — only one is compulsory
A compulsory adjustment happens when the national minimum wage (NMW) rises and your worker's current rate falls below the new floor. The NMW applies in full to domestic workers, so paying below it after the effective date is unlawful no matter what your contract says — a contract cannot agree away the minimum wage.
A merit or goodwill increase is anything above that floor. No law prescribes an annual increase percentage for domestic workers earning above the minimum: the amount and timing are between you and your worker. Most households handle both at the same moment — when the new NMW is gazetted each year — which keeps the admin to one letter and one updated payslip.
The 2026 adjustment: R28.79 to R30.23 per hour
From 1 March 2026 the national minimum wage rose from R28.79 to R30.23 per ordinary hour worked — an increase of R1.44, about 5%. The Department of Employment and Labour confirmed the adjustment benefits all workers, including domestic workers, who have been on the full national rate since reaching parity in March 2024.
In monthly terms, a full-time worker on 40 hours a week moves from roughly R4,989.88 to R5,239.46 per month (using the common 4.333-weeks-per-month payroll convention). If you were already paying above R30.23 an hour, the law does not force a further increase — but holding pay flat while prices rise is a real-terms pay cut, which is why many employers at least match the NMW percentage each year.
Deciding how much to give above the minimum
There is no statutory formula, so think in three layers. First, compliance: the new hourly rate must be at least R30.23. Second, cost of living: matching the NMW's annual percentage keeps your worker's buying power roughly stable. Third, merit and retention: extra responsibility (childcare added to housekeeping, managing the home while you travel), long service, or scarce skills justify more — replacing a trusted worker who knows your home and children costs far more than a fair raise.
Whatever you decide, do not bundle it into a year-end gift instead. A 13th cheque or bonus is a once-off; an increase compounds and raises the base for overtime, leave pay and UIF. Workers know the difference, and so do CCMA commissioners.
How to give the increase properly
Put it in writing, always. The letter does three jobs: it proves you complied with the new minimum wage from the right date, it amends the wage clause of the employment contract without rewriting the whole document, and it gives the worker a document she can use for credit or rental applications.
Then update the paper trail. The next payslip must show the new rate and the recalculated UIF deduction (1% of the higher remuneration — and your matching 1% employer contribution rises too, so update your monthly UIF declaration). File the signed letter with your payslip copies, which Sectoral Determination 7 requires you to keep for three years.
Using the template
The letter below works for both a minimum-wage adjustment and a merit increase — clause 3 lets you state the reason, and stating it matters: an increase explicitly tied to the annual NMW adjustment avoids creating an expectation of a fixed percentage every year. Print two copies, both of you sign both, and each keeps one. If your worker cannot read English comfortably, explain it in her home language before she signs; an explained letter is worth far more than a merely signed one.
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Frequently asked questions
Am I legally forced to give my domestic worker an increase every year?
Only to the extent the national minimum wage requires it. If the new NMW puts your worker's rate below the floor — R30.23 per hour from 1 March 2026 — you must adjust from the effective date. Above the floor, increases are voluntary, though most employers match the annual NMW percentage to preserve buying power.
When does the new minimum wage take effect?
The 2026 adjustment took effect on 1 March 2026. Adjustments are gazetted by the Minister of Employment and Labour and typically take effect on 1 March; pay from that date must be at the new rate even if your payday falls later in the month.
My worker already earns above R30.23 an hour. Must I still increase?
No law forces an increase above the minimum. But a flat wage while prices rise is a cut in real terms, so a cost-of-living adjustment is good practice and helps you keep a worker you trust.
Does the increase change my UIF payments?
Yes. UIF contributions are 1% from the worker plus 1% from you, calculated on remuneration, so both rise with the wage. Update your monthly UIF declaration and show the new deduction on the payslip.
Can I give a bonus instead of an increase?
Not if the increase is needed to meet the minimum wage — a bonus cannot substitute for the legal hourly floor. Above the floor it is your choice, but remember a bonus is once-off while an increase raises the base for leave pay, overtime and UIF.