The Paradox of Minimum Wage: Exploring its Effects on the Economic Welfare of Domestic Workers in Zambia

This study explored the effects of minimum wage policies on the economic welfare of domestic workers through a hermeneutic phenomenological lens within a qualitative research framework. A total of twenty-two (22) participants were engaged using snowball and criterion-based sampling techniques, revealing a diverse range of perspectives on the effectiveness of minimum wage regulations. The findings uncovered three key insights: (i) Minimum wage policies often fail to enhance the economic welfare of domestic workers due to widespread non-compliance, informal employment arrangements, and weak enforcement mechanisms; (ii) For some domestic workers, the policy has unintended negative consequences as employers respond by reducing wages (if initially above the minimum threshold), cutting working hours, or increasing workload; and (iii) Despite these challenges, minimum wage policies serve as an essential benchmark, facilitating fair compensation discussions and empowering workers in wage negotiations. These findings underscore the complexity of wage regulations in the domestic work sector and highlight the urgent need for stronger enforcement mechanisms, enhanced social protection measures and targeted awareness campaigns to ensure that minimum wage policies meaningfully contribute to the economic welfare of domestic workers.