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Oral Answer by Senior Minister of State Dr Koh Poh Koon on Salary Reduction for Work Permit Holders

Foreign manpower

NOTICE PAPER NO. 1719 OF 2022 FOR THE SITTING ON OR AFTER 23 FEBRUARY 2023

QUESTION NO. 4227 FOR ORAL ANSWER

MP: Mr Louis Ng Kok Kwang

To ask the Minister for Manpower in each year since 2019 (a) how many employers have informed the Ministry in writing of modifications to the salary terms for a work permit holder to less favourable terms than declared and stated in their in-principle approval letter; (b) how many employers have been fined for not having done so; (c) how many notices of salary reduction have been issued to workers; and (d) on what grounds does the Ministry determine whether a salary reduction can be allowed.

Answer

1 When applying for Work Permits (WPs), employers are required to declare key salary terms, including the basic and fixed monthly salary, offered to prospective Work Permit Holders (WPHs). Employers are allowed to revise the salary downwards, provided they have obtained the worker’s written agreement and have notified the Ministry of Manpower (MOM). This is to provide flexibility for instances where worker’s performance fall below expectation and cannot justify the salary paid. Workers can check their latest salary as declared by their employers to MOM through the MyMOM portal on MOM’s website. MOM is working on sending a push notification to workers via the SGWorkPass app to inform workers of any salary changes in a timely manner.

2 From 2019 - 2022, the MOM was notified of salary reductions affecting an average of about 3 percent of non-domestic WPHs each year. 

3 Where there is a dispute over salary reduction from the amount stated in the in-principle approval letter, the employer is required to show documented evidence of the worker's consent and that he had notified MOM beforehand. Otherwise, the original declared salary holds and the employer will be required to make good any salary shortfall, regardless of the reason for the salary reduction. If the employer reduces the worker's salary without their consent or does so before informing the Controller, they are liable to a fine of up to $10,000 per worker. From 2019 - 2022, Administrative Financial Penalties were imposed on an average of 27 employers per year.