Electronic Payment System for Work Permit Holders
Ministry of ManpowerSpeakers
Summary
This question concerns Mr Louis Ng Kok Kwang’s inquiry on whether the government will mandate electronic salary payments for work permit holders, similar to existing requirements for S Pass holders. Minister of State Sam Tan Chin Siong responded that current laws already require employers to pay electronically if requested by workers, with two-thirds of such workers already receiving salaries via this method. He explained that making electronic payments mandatory was avoided following consultations where workers cited concerns over bank fees and minimum balances, while small employers noted potential administrative burdens. To facilitate adoption, the Ministry of Manpower introduced an online facility in 2014 for opening bank accounts during the work permit application process. Minister of State Sam Tan Chin Siong emphasized that the Ministry will continue reviewing policies and that workers can seek assistance if employers reject their electronic payment requests.
Transcript
7 Mr Louis Ng Kok Kwang asked 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.
The Minister of State for Manpower (Mr Sam Tan Chin Siong) (for the Minister for Manpowe): Mdm Speaker, 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. To enhance this further, since October 2014, Ministry of Manpower (MOM) has introduced an online facility to allow employers to open bank accounts for their Work Permit holders automatically when they apply for their Work Permits.
Mdm Speaker, we had studied whether we should make electronic payments mandatory. However, during consultations with unions, workers and employers, some have expressed a preference for flexibility. So, some workers have also preferred to receive their salaries in cash. They say they will face difficulties in maintaining a minimum sum account balance, as required by the banks, or be charged a fee, if their bank accounts do not meet the minimum sum requirement. Similarly, some small and micro-SME employers like family-run shops, also expressed difficulties in paying salaries electronically as they would need to incur additional administrative costs and resources to perform this task.
Nonetheless, Mdm Speaker, my Ministry will continue to conduct periodical policy reviews. 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.
Mr Louis Ng Kok Kwang (Nee Soon): I thank the Minister of State for the reply. Just one clarification – if the worker does request to be paid by Electronic Payment System and the company rejects, can he/she then seek help from MOM? And what actions will MOM take?
Mr Sam Tan Chin Siong: Mdm Speaker, I thank the Member for the supplementary questions. Under our existing law, we have already mandated employers to make electronic payment provision mandatory for the workers, if they make the request. If workers find that their salaries are not paid on time or not paid in full sum per their contract, they can always approach MOM for assistance. Let me take this opportunity to advertise MOM's telephone numbers. For workers who have difficulties in salary matters or other manpower matters, they can always dial the MOM hotline number at 64385122.