Electronic Payments for Work Permit Holders
- Louis Ng asked why electronic salary payments are mandatory for S Pass holders but not for work permit holders, and how the Ministry verifies that cash payments match the stated salary vouchers.
- The Minister of State explained that e-payments are required for S Pass holders to prove minimum salary compliance, while work permit holders and small employers prefer cash due to convenience and administrative costs, though e-payments are already encouraged and two-thirds of work permit holders receive salaries electronically.
- The Minister of State noted that employers can open e-payment accounts for work permit holders during work permit applications, with about two-thirds doing so, and that workers should report any discrepancies in payments to MOM.
- Louis Ng inquired if the Ministry tracks the number of employers opening bank accounts for work permit holders and what proportion of such workers have local bank accounts, to which the Minister responded that around two-thirds are paid electronically and a similar proportion of employers open accounts.
- Louis Ng suggested incentivizing employers to open bank accounts for work permit holders to increase e-payment adoption, and the Minister agreed to continue consultations and policy reviews to explore ways to encourage more comprehensive e-payment systems while maintaining flexibility.