The increment of minimum wages for domestic workers is a critical policy measure aimed at improving the socioeconomic well-being of a vulnerable labor force. While it promises to enhance the quality of life for workers through better compensation, its effects extend beyond individual earnings to influence household living conditions. The study examined how raising the minimum wage impacts the affordability of domestic services, household budgets, and the overall dynamics within homes employing domestic workers. Data entry and statistical analysis was done using STATA. For inferential statistics, ANOVA, and regression analysis was employed to establish associations between variables. Study Findings revealed that monthly incomes ranged from K600 to K1,500, with an average of K800. Wage increments varied widely, averaging K167.93, and were significantly influenced by years of work, as shown through regression analysis (p < 0.001). A majority (69.0%) reported slight improvements in their standard of living, though some experienced no change or worsened conditions. Cross tabulations demonstrated a correlation between improved living standards and reduced financial stress, while Pearson correlation analysis highlighted a strong, positive relationship between increased ability to afford essentials and debt reduction (r = 1.000, p < 0.01). Despite these gains, over half of respondents expressed dissatisfaction with their overall quality of life improvements, with 46.3% noting no change in their ability to cover monthly expenses. These findings suggest that while the wage increment provides financial relief for some, its overall impact on domestic workers’ living conditions is mixed, highlighting the need for complementary measures to address persistent financial challenges. The adequacy of wage increments, comprehensive support programs, and robust enforcement of minimum wage laws are critical to improving the financial stability and well-being of domestic workers in Lusaka, Zambia. Regularly adjusting wages to match inflation and modern living costs ensures that workers can meet their basic needs. Beyond wage adjustments, initiatives promoting financial literacy, access to affordable credit, savings, and safety nets like health insurance are vital for empowering workers to manage their finances and prepare for future challenges. Legal safeguards against wage theft and retaliation, coupled with awareness campaigns and whistleblower protections, can further strengthen compliance and fairness in the labor market.