New Rule: No More “Maids’ Money Stash” – Employers Must Pay Directly
Starting January 1st, Singapore’s Ministry of Manpower (MOM) is turning the tables on the old practice where bosses would keep their maids’ salaries under the mattress, or in this case, a secure box. The new work‑permit condition means employers can no longer safekeep wages, and if they violate this rule, they’re up for a $10,000 fine and a max 12‑month jail stint.
Why MOM is on High Alert
Over the last three years alone, MOM received around 600 complaints each year about maids’ salary snafus. Those tense moments of “Where did my money go?” have proven to be more nerve‑wracking than a game of high‑stakes poker.
Senior Parliamentary Secretary for Manpower, Low Yen Ling, told a crowd at a Centre for Domestic Employees (CDE) event that MDWs often trust their employers with their pay, but MOM is “strongly discouraging” the practice. The idea is simple: let the maid manage her money herself by opening a bank account, which will cut down on the drama that usually follows a late salary or a misplaced cheque.
Takeaway For Employers
- Pay your maids’ salaries on time and in full.
- No more safekeeping – your role is only to hand over the funds.
- Assist them in opening a bank account (POSB Payroll accounts are the go‑to).
MOM’s updated policy also dovetails nicely with the government’s new limits on how much foreign workers can borrow from licensed moneylenders. It’s a dual‑pronged effort to keep financial mishaps off the table, quite literally.
The CDE’s Big Win
The CDE, a stalwart from 2016, has already helped lift over $219,000 in unpaid wages. Because “salary disputes not only leave a maid shell‑shocked but also snort the family budgets back home,” Shamsul Kamar, the executive director, says the solution is straightforward: bank the money, not the mind.
Since 2016, the CDE has championed electronic wage payments. In a pilot with POSB last December, they opened up more than 5,400 payroll accounts for FDWs who previously found themselves juggling cash without a bank card. And today, employers can tie the maid’s POSB payroll account and CDE membership into the work‑pass issuance process—plus an ATM card will arrive at their doorstep.
Real‑World Reaction
Best Home Employment Agency owner Tay Khoon Beng (52) sees the online application as a win for everyone. “With more FDWs using the bank card, this will naturally nudge employers away from the old safekeeping habit,” he mused. A digital first, a cash-less future, and a healthier relationship between employers and workers.
TL;DR
From next year, employers can’t hide maids’ wages. Instead, they’ll hand them directly to a bank, making life simpler for workers and cutting out the financial drama. If you’re an employer, get that payroll account for your maid—no more “who’s got the money?” suspense.
