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Oral Answer by Mr Sam Tan, Minister of State for Manpower, to Parliamentary Question on e-payment of salaries

Employment practices Foreign manpower

NOTICE PAPER NO. 1113 OF 2018 FOR THE SITTING AFTER 19 MARCH 2018

QUESTION NO. 1873 FOR ORAL ANSWER

MP: Mr Louis Ng Kok Kwang

To ask the Minister for Manpower (a) why are employers required to pay the salaries of S Pass holders electronically but not for work permit holders; and (b) how does the Ministry verify that the amount stated in salary vouchers tally with the cash amount paid to workers.

Answer

  1. Under the S Pass framework, there is a minimum salary requirement specified by the MOM. Electronic salary payments were therefore made mandatory for S Pass holders to ensure that employer has documentary proof of meeting the minimum salary requirement in order to enjoy the S Pass privileges.
  2. Ministry of Manpower (MOM) did consider making electronic salary payments mandatory for work permit holders. However, during our consultations with workers, employers and unions, some work permit holders expressed a preference to receive their salaries in cash as it is more convenient. Some work permit holders also gave feedback that they would face difficulties in maintaining a minimum account balance of $500 in their bank account to avoid being charged a fee by the banks.
  3. Small and micro SME employers like family-run shops who employ work permit holders have also expressed difficulties paying salaries electronically as they would need to incur additional administrative costs and resources to do this.
  4. Nevertheless, our laws already require employers of work permit holders to pay salaries electronically if requested by the workers. Today, two-thirds of these workers receive their salaries electronically. To further encourage the adoption of e-payment of worker salaries, MOM introduced an online facility in 2014 to facilitate employers opening bank accounts for their work permit holders when applying for their work permits.
  5. In addition, MOM also mandated the issuance of itemized payslips and written key employment terms since April 2016. Workers should ensure that they are paid the amount stated in their salary vouchers. When there is any discrepancy, workers should seek clarifications from their employer and not sign on the salary vouchers. If workers are unable to resolve such disputes with employers, they should seek help from MOM immediately. No employer should ask their workers to sign on salary vouchers in advance or on blank salary vouchers. Anyone who has information on employers who do this should report this to MOM and action would be taken against the errant employers.