Reduction of Salary of Work Permit Holders to Below Amount Stated on In-principle Approval Letter

Mr Louis Ng Kok Kwang asked the Minister for Manpower for each year in the past three years, among notifications sent by employers to the Ministry to reduce the salary of a work permit holder to below the amount stated on the in-principle approval (IPA) letter (a) what has been the median absolute amount of reduction; and (b) what has been the median percentage of reduction compared to the initial salary.

In the past three years, the Ministry of Manpower (MOM) was notified of salary reductions affecting less than two percent of non-domestic work permit holders (WPH) per year. The median amount of salary reduction reported was $170 in 2017, $160 in 2018 and $100 in 2019. The median percentage of reduction reported was 20% in 2017, 22% in 2018 and 17% in 2019, compared to the initial salary declared.

Under our laws, employers are not allowed to reduce the salary of their work WPHs below what was declared on the In-Principle Approval (IPA) letter unless they have obtained the workers' written agreement and notified the Ministry beforehand. WPHs who have their salary reduced without their agreement should approach MOM or the Tripartite Alliance for Dispute Management (TADM) to lodge a case. MOM will require him to make good any salary shortfall to the worker and impose a fine of up to $10,000. WPHs whose employment contracts are terminated by their employers for not agreeing with the salary reductions should also come forward to seek help from MOM. MOM will allow such WPHs to transfer to a new employer.