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Oral Answer by Mr Sam Tan, Minister Of State For Manpower, to Parliamentary Question on Electronic Payment System for Work Permit Holders

Foreign manpower Work passes and permits
Notice Paper No. 89 Of 2016 For The Sitting On 14 Mar 2016 Question No. 190 For Oral Answer

MP: Louis Ng Kok Kwang

To ask the Minister for Manpower whether the Ministry will consider requiring employers to pay work permit holders through an electronic payment system given that this is already required of employers of S Pass holders.

Answer

  1. Our laws already require employers of work permit holders to pay salaries electronically if the workers make the request. Today, two-thirds of these workers already receive their salaries electronically today. To enhance this further, since October 2014, MOM introduced an online facility to allow employers to open bank accounts for their work permit holders automatically when they apply for their work permits.
  2. We have also studied whether we should make electronic payments mandatory. However, during our consultations with unions, workers and employers, some have expressed a preference for flexibility. Some workers have also preferred to receive their salaries in cash. They said they were faced with difficulties in maintaining a minimum account balance, as required by the banks, or be charged a fee if their bank accounts do not meet the minimum sum required. Similarly, some small and mirco SME employers like family-run shops also expressed difficulties paying salaries electronically as they would need to incur additional administrative costs and resources to perform this task. 
  3. Nonetheless, my Ministry will continue to conduct periodical policy reviews; and we will continue to monitor the situation and review our laws to ensure that adequate convenience and protection will be put in place for our workers.