Reduction of Salary of Work Permit Holders to Below Amount Stated on In-principle Approval Letter
Ministry of ManpowerSpeakers
Summary
This question concerns the frequency and magnitude of salary reductions for work permit holders below amounts stated in their in-principle approval letters. MP Louis Ng Kok Kwang requested data on median reductions from 2017 to 2019, and Minister for Manpower Josephine Teo reported that less than 2% of workers were affected annually, with median reductions ranging from $100 to $170. Minister for Manpower Josephine Teo emphasized that employers must obtain written consent and notify the Ministry before reducing salaries, or face fines up to $10,000 and backpay requirements. Workers who are terminated for refusing reductions or who have salaries reduced without agreement should contact the Ministry or the Tripartite Alliance for Dispute Management. The Ministry facilitates employment transfers for these workers and ensures that employers who violate these regulations are penalized while being required to rectify all salary shortfalls.
Transcript
11 Mr Louis Ng Kok Kwang asked the Minister for Manpower for each year in the past three years, among notifications sent by employers to the Ministry to reduce the salary of a work permit holder to below the amount stated on the in-principle approval (IPA) letter (a) what has been the median absolute amount of reduction; and (b) what has been the median percentage of reduction compared to the initial salary.
Mrs Josephine Teo: In the past three years, the Ministry of Manpower (MOM) was notified of salary reductions affecting less than two percent of non-domestic work permit holders (WPH) per year. The median amount of salary reduction reported was $170 in 2017, $160 in 2018 and $100 in 2019. The median percentage of reduction reported was 20% in 2017, 22% in 2018 and 17% in 2019, compared to the initial salary declared.
Under our laws, employers are not allowed to reduce the salary of their work WPHs below what was declared on the In-Principle Approval (IPA) letter unless they have obtained the workers' written agreement and notified the Ministry beforehand. WPHs who have their salary reduced without their agreement should approach MOM or the Tripartite Alliance for Dispute Management (TADM) to lodge a case. MOM will require him to make good any salary shortfall to the worker and impose a fine of up to $10,000. WPHs whose employment contracts are terminated by their employers for not agreeing with the salary reductions should also come forward to seek help from MOM. MOM will allow such WPHs to transfer to a new employer.