Why levy isn’t used to subsidise maids’ wages

• The Sunday Times (05 September 2010) : Why levy isn’t used to subsidise maids’ wages
• The Sunday Times (29 August 2010) : Channel levy to maids as wages

Why levy isn’t used to subsidise maids’ wages
- The Sunday Times, 05 September 2010

We thank Mrs Padmini Kesavapany for sharing her feedback (Sunday Times, 29 August).

2.   The purpose of the levy is used as a pricing mechanism to regulate the demand and inflow of foreign domestic workers (FDWs). Given Singapore’s size and resource constraints, we cannot allow an unlimited inflow of FDWs. For this reason, it would not be appropriate to use the FDW levy to subsidize or supplement the wages of the FDW.

Channel levy to maids as wages
- The Sunday Times, 29 August 2010

I refer to Ms Shafiyahtun Najak's comment pertaining to the article, 'When maids moonlight on days off' last Sunday. Her suggestion that looking at fair wages should be the concern seems viable, sensible and acceptable. However, it would be another harsh move if the employers, who already are burdened with high recruitment fees, are made to pay extra wages simply to keep the maids from moonlighting. Moonlighting is in violation of the terms set out in the work permit, and for it to be carried out so blatantly is even more surprising.

The ideal solution would be for the levy, which still comes out of the employer's pocket, to be channelled to the maid as wages. Thus, curbing the maid population (one of the reasons for implementing the levy system), putting an end to their low-wage grouses and keeping at bay other problems arising from this illegal practice can be relatively managed with just this one
master stroke.