Consequences for and Enforcement Against Employers Who Have Not Made Declaration for Salary Payment Electronically

Ms Anthea Ong asked the Minister for Manpower (a) what percentage of employers have not made a declaration by 15 April 2020 that they will pay salaries electronically by the next salary payment due date; (b) what are the reasons cited for not doing so; (c) what are the consequences for this non-declaration given that electronic salary payment is now a legal requirement; and (d) how will the Ministry enforce this new law.

The vast majority of employers are now paying salaries electronically. In the initial month of implementation, a very small number of employers were unable to do so, due to technical or administrative issues. For example, their workers' bank account applications were still pending approval by the bank. In these cases, the Ministry of Manpower (MOM) allowed the employers to continue to pay outstanding salaries in cash.

Due to its urgent necessity, this new requirement was introduced at very short notice. Nevertheless, the vast majority of employers have complied. MOM will continue to follow up and remind the remaining employers to make the switch if they have not already done so, especially now that circuit breaker measures have been lifted. MOM will in due course take enforcement action against non-compliance, as it would for other conditions under the Employment of Foreign Manpower Act.