From Informal to Empowered: How Household Work is Transforming in South Africa

The shift in South Africa’s job market

South Africa’s labour market is changing shape.
While total employment has risen since 2008, the structure of work is shifting toward more stable and traceable employment.

One sector where this transformation is most visible is private household work: domestic workers, gardeners, caregivers, and other home-based employees.
According to GroundUp’s analysis of long-run labour-force data, employment in this sector has become more structured over time, with more households seeking clear contracts, predictable hours, and compliant payrolls.

Rather than a sign of decline, this trend points to an upgrade from ad-hoc work to recognised, professionalised household employment.

Why this evolution is good for everyone

As informal roles give way to formal, documented employment, both sides gain.

Workers gain recognition because they can prove income, access benefits, and plan for the future.
Employers gain protection through compliance, transparency, and ethical employment management.
Communities gain stability as predictable employment and UIF participation strengthen financial inclusion at household level.

It is a quiet but powerful shift. The household economy is becoming part of South Africa’s formal growth story.

The real opportunity: formalisation as empowerment

Formalisation is not bureaucracy; it is empowerment.
Each payslip, UIF contribution, and contract turns an informal job into a documented livelihood.

For workers, that documentation opens access to:

• Banking and insurance

• Savings or credit products based on proof of income

• UIF protection if work ends

For employers, it delivers:

• Legal compliance and peace of mind

• Transparent budgeting for wages and benefits

• A trustworthy and professional relationship with their worker

The 3-Step Framework: From Informal to Empowered

Step 1: Audit current arrangements
Review what is in place: written terms, hours, pay, and UIF registration.
Identify where you can improve clarity or documentation.

Step 2: Formalise the terms
Use a simple, plain-English contract.
Set up a consistent payroll record, either manual or digital.
Ensure UIF payments and leave records are kept up to date.

Step 3: Unlock access through documentation
Payslips and contracts become gateways to formal banking and benefits.
Employers can prove compliance, and workers can prove stability.
Both sides gain long-term trust and resilience.

Why now

As South Africa’s economy evolves, households are becoming micro-employers who contribute meaningfully to the formal economy.
By formalising one household at a time, we are building a fairer and more inclusive labour market that values care work, professionalism, and dignity.