Top Three Sectors with Highest Number of Salary-related Dispute Cases
Ministry of ManpowerSpeakers
Summary
This question concerns Mr Melvin Yong Yik Chye’s inquiry into the top three sectors for salary-related disputes and the prevalence of electronic payments for Work Permit holders. Minister Josephine Teo identified Construction, Manufacturing, and Wholesale and Retail Trade as the primary sectors, accounting for 83% of the 3,100 claims filed from April to December 2017. While only 11% of these claimants received electronic payments, the overall electronic salary payment rate for foreign workers has increased to 76%. Current laws mandate electronic payment upon worker request, and the Ministry of Manpower is now consulting stakeholders on potentially mandating this practice for all employers. Minister Josephine Teo stated the ministry will continue to facilitate bank account openings and work with partners to improve take-up rates.
Transcript
36 Mr Melvin Yong Yik Chye asked the Minister for Manpower (a) what are the current top three sectors with the highest number of salary-related dispute cases involving Work Permit holders; and (b) in how many of these cases are the salaries of the Work Permit holders paid electronically.
Mrs Josephine Teo: The Tripartite Alliance for Dispute Management (TADM) handles salary-related dispute cases, including cases lodged by Work Permit holders. From its inception in April 2017 to December 2017, there were 3,100 salary claims involving Work Permit holders. The top three sectors with the most number of claims were Construction, Manufacturing, and Wholesale and Retail Trade, which accounted for 2,600 claims, or 83% of all salary claims. Of these 2,600 claims, 280 workers or 11%, had their salaries paid electronically.
Our laws already require employers of Work Permit holders to pay salaries electronically if their workers make the request. The Ministry of Manpower (MOM) has been facilitating the process of opening bank accounts for foreign workers during the Work Permit application process since 2014. In addition, MOM and our partners, such as the Migrant Workers' Centre have been working to encourage salary payment through electronic means. A recently concluded survey conducted by MOM showed that 76% of foreign workers were paid electronically, higher than the 67% in 2014. We will continue to work with stakeholders to improve take-up rates and also consult them on the option of mandating electronic salary payment.