Limit on Salary Reduction for Work Permit Holder
Ministry of ManpowerSpeakers
Summary
This question concerns salary reductions for Work Permit holders, where MP Mr Louis Ng Kok Kwang inquired about the frequency of reductions and requested a limit on such changes. Minister of State Mr Zaqy Mohamad reported that fewer than 2% of non-domestic Work Permit holders are affected annually, with MOM currently studying the issue and consulting stakeholders including non-governmental organisations. He clarified that any salary reduction occurring before a Work Permit is issued is an offence, as such conduct is strictly prohibited under current regulations. While written consent for changes is not verified at the application stage, it is required during dispute resolutions to ensure workers are legally protected. The Ministry will determine the best way forward regarding a potential limit on salary reductions after the conclusion of its ongoing study.
Transcript
31 Mr Louis Ng Kok Kwang asked the Minister for Manpower (a) in the past three years, of the notifications received to reduce the salary of a Work Permit holder stated in their in-principle approval letter, what proportions are within (i) one month, (ii) one year of the Work Permit issue date; and (b) whether the Ministry will consider a limit on the amount a company is allowed to reduce the salary of the Work Permit holder.
The Minister of State for Manpower (Mr Zaqy Mohamad) (for the Minister for Manpower): In the past three years, the Ministry of Manpower (MOM) was notified of salary reductions affecting less than 2% of non-domestic Work Permit holders per year. From that number, less than one in 10 were within one month, and about four in 10 were within one year, after the Work Permit was issued.
As explained in a reply to a Parliamentary Question raised by the Member on this topic last month, MOM is studying the issue and we will consult the relevant stakeholders to determine the best step forward for foreign workers.
Mr Speaker: Mr Louis Ng.
Mr Louis Ng Kok Kwang (Nee Soon): I thank the Minister of State for the reply. Could I just check further whether 2% is about 14,000 workers every year? It is quite a huge number. So, I want to check whether MOM obtains this copy of the written consent to show that the worker accepts the salary reduction, or do we only verify that this written consent exists when a dispute occurs, during the dispute resolution stage.
Second, could I also ask, with the upcoming consultation, whether MOM would also be consulting with non-government organisations (NGOs) that are working on this issue as well?
Mr Zaqy Mohamad: I thank the Member. I will take the second question first. Certainly, we are open to NGOs being consulted or taking their feedback.
On the first question, certainly, I think that all the foreign workers have direct access to MOM if they want to make a complaint. At this moment, we do not take every written change at the point of application. But having said that, when there is a dispute, we will require the documentation to be provided. And the law protects the worker, especially when there is no documentation provided in terms of a written agreement on the change in salary.
Mr Speaker: Mr Louis Ng.
Mr Louis Ng Kok Kwang: Sir, just one more question. I understand that the reply is that five in 10 of these salary reductions occurred within one year from the Work Permit issue date. But could I also check whether we have data on how many of the salary reductions occurred before the Work Permit issue date, which means that the foreign workers were promised a salary, but when they arrived in Singapore, the salary was immediately reduced? Does this conduct constitute providing false information to MOM during the Work Permit application stage?
Mr Zaqy Mohamad: I thank the Member. In short, any reduction in salary before the Work Permit issuance will constitute an offence. Technically, there is no need for them to submit any documentation because reduction in salary before Work Permit issuance is not allowed.