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Paying your helper's salary on time and in full: Why it matters

Reading time: 5 mins

Living with an MDW - Paying your helpers salary on time and in full

At a glance

  • Missing out on paying your MDW’s salary on time not only has legal consequences, but also affects morale.
  • Pay her the full salary as declared to MOM and don’t safekeep her salary.
  • Avoid disputes and other issues by paying on time and in full.

Managing household finances may feel like a juggling act, with priorities like bills and groceries to balance. At times, you might overlook paying your migrant domestic worker (MDW) on time. While this might seem like a small issue, it could have serious consequences. Let’s explore what these are as well as how it might affect you and your helper.

First, the regulations

  • Your MDW must be paid her full salary within 7 days of the end of her salary period.
  • The full salary refers to the entire amount declared to MOM, without any deductions for medical expenses, repatriation or compulsory training. Providing for her meals, accommodation and medical care is your responsibility as an employer.
  • You must not keep your MDW’s salary or any other money belonging to her, even if she asks you to do so. Instead, offer lockers so that she can keep her earnings safe and have access to it.

Paying her on time and in full is not just about adhering to regulations. When your MDW receives her salary, she can focus on her responsibilities and not worry about the impact that a delayed or incomplete salary may have on her family.

Tips for full and timely payment

Bank transfer

Opt for scheduled bank transfers to make automated salary payments to her bank account. This way, you’ll never miss the deadline and it also provides a record which both parties can refer to.

Calendar

Budget for your helper’s salary as a non-negotiable expense.

List

If paying by cash, maintain a proper record of all monthly salaries paid. Also, consider having your MDW acknowledge the record of each payment to reduce the risk of disputes.

Bank

Open a bank account for her to make payments easier. Do not safekeep her ATM card, as this could lead to disputes.

What about unpaid leave and placement loans?

  • You don’t have to pay your MDW when she’s on home leave unless her employment contract states that you need to do so.
  • You can recover a fixed amount from her salary as payment for her placement loan. However, you must clearly indicate the amount, duration and method of recovery in the employment contract.
Living with an MDW - Paying your helpers salary on time and in full

Proper payments bring benefits

Paying her full salary on time isn’t just about adhering to regulations. It’s also about building trust and respect with your MDW. Your MDW will feel secure knowing that her and her family’s needs will be met. This, in turn, can foster a strong employer-employee relationship, making her feel valued and for her to be able to carry out her tasks.

Additional resources