The sectoral determination makes provision for employers to pay medical expenses incurred by domestic workers and set off those medical expenses against a domestic worker’s pay.

The proviso here is that this must be at the request of the domestic worker.[i]

Once again, the provisions of the National Minimum Wage Act are not clear in this regard and consequently, while such deductions are currently permissible, this may change in due course.

Where a domestic worker requests a deduction in wages for the payment of medical expenses, employers should attempt to ensure that the monthly deduction is done in tranches so that the impact on the domestic worker is mitigated accordingly. A deduction of not more than 10% of the domestic worker’s monthly wages constitutes a useful guideline in this regard.

Click to download loan agreement which can be customized and edited in accordance with your needs.


[i] See section 20(5) of Sectoral Determination 7

Click Here

for all documents, contracts and forms