Johannesburg – South African domestic workers, long considered one of the country’s most vulnerable groups, have made notable progress in managing debt over the past five years, according to the latest Eighty20/XDS Credit Stress Report for the third quarter of 2025.
The report shows that while the overall loan balance in South Africa reached R2.6 trillion, overdue amounts fell by R3 billion, down to R212 billion. Within this trend, domestic workers and clerks, often referred to as the “Mothers of the Nation,” recorded a dramatic drop in default levels. From around 75% in late 2021, defaults in this segment have fallen to just over 40% in Q3 2025, now lower than the middle class.
These workers, mainly low-income, female grant recipients, face double economic pressures. They depend on private households for employment while managing their own financial challenges, often turning to credit to cover daily expenses. The recent improvements in debt management indicate growing financial resilience despite ongoing economic strain.
However, the sector continues to face major challenges. Many domestic worker jobs remain informal and underpaid, falling short of the National Minimum Wage. Administrative protections like enrollment in the Unemployment Insurance Fund are often neglected, leaving workers exposed to exploitation.
Government efforts and new union activities aimed at formalising the sector have had mixed results. Some households have become reluctant to hire domestic workers due to increased regulatory obligations. Employment data from Stats SA shows a slight quarterly increase in private household jobs by 5,000 positions, but year-on-year, the sector has lost 17,000 jobs, with domestic worker positions declining by 0.7% over the same period.
Long-term trends show the number of domestic workers has not exceeded 880,000 in nearly four years, reflecting a permanent loss of around 150,000 jobs since the COVID-19 pandemic. Before the pandemic, domestic worker numbers hovered around 1 million, with some estimates, including from SweepSouth, suggesting closer to 1.2 million.
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