Electronic Payments for Work Permit Holders

Sir, under the S Pass framework, there is a minimum salary requirement specified by MOM. Electronic salary payments were, therefore, made mandatory for S Pass holders to ensure that their employer has documentary proof of meeting the minimum salary requirement in order to enjoy the S Pass privileges.

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 for them. 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.

On the other hand, small and micro SME employers like family-run shops or mom-and-pop shops who employ work permit holders have also expressed difficulties paying salaries electronically as they would need to incur additional administrative fees and resources to do this.

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.

In addition, MOM also mandated the issuance of itemised payslips and written key employment terms since April 2016. Workers should ensure that they are paid the amount stated in their salary vouchers. And when there is any discrepancy, workers should seek clarifications from their employer and not sign on the salary vouchers. If workers are not able to resolve such disputes with their employers, they should seek help from MOM immediately. Sir, 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.

I thank the Minister of State for the reply. Can I just check with the Minister of State whether MOM does track the number of employers that open a bank account for their work permit holders when they apply for their work permits? And two, does MOM know what proportion of work permit holders currently have bank accounts here in Singapore?

Sir, as mentioned in my reply, right now, more than two-thirds of the work permit holders are paid using the e-payment. From our statistics, as regard the provisions of the online e-payment during the application process for the work permit, close to two-thirds of the employers have actually chosen to open e-payment accounts for their employees.

Just one last clarification, Sir. If I could ask if MOM is willing to incentivise the process so as to try to incentivise the employers when they apply for the work permit to apply also for the bank accounts for their work permit holders. In that way, we can reach 100% of the work permit holders having bank accounts here in Singapore.

Sir, I thank the Member for the suggestion. We will continue to consult the employers, the employment agencies and also the work permit holders to explore the possibility of making a comprehensive e-payment system for the payment of salaries.

But, as mentioned in my reply, not all the permit holders actually prefer to receive their salary electronically for a range of reasons. And also, not all the employers are able to do this because of administrative fees and other constraints. So, I think we should provide a framework where those who need e-payment of their salary will be able to do so and, at the same time, to also allow for some flexibilities for those who are genuinely not able to adopt this payment method, so that there will be flexibility and also convenience between the employers and employees.

Nonetheless, I take the Member's point. When we continue to do our policy review, we will find ways and means to further encourage our employers to adopt this e-payment method.