Can I Deduct Costs from My Helper’s Salary? Employer Do’s and Don’ts

Hiring a domestic helper in Singapore comes with various responsibilities, including ensuring fair wages and proper treatment. One common question employers have is whether they can deduct costs from their helper's salary. 

While some deductions are permitted under specific circumstances, others are strictly prohibited. Understanding the do’s and don’ts of salary deductions is crucial to maintaining a positive employer-helper relationship and staying compliant with Singapore’s regulations.

Understanding salary deductions for domestic helpers

Under Singapore’s Employment of Foreign Manpower Act (EFMA), domestic helpers are entitled to receive their full salary as stated in their employment contract. Employers should be aware of the legal framework before making any deductions to avoid disputes or legal consequences.

Permissible deductions

Certain deductions are allowed, but they must be clearly communicated and agreed upon between the employer and the helper:

1. Salary advances - If your helper requests an advance on her salary, you may deduct it from subsequent payments, but this should be done transparently and with mutual agreement.
2. Government mandated deductions - Employers may deduct contributions that are required by law, such as the foreign worker levy.
3. Voluntary deductions - If your helper agrees to deductions for personal expenses, such as phone bills or additional training, these must be documented in writing to ensure clarity.

Prohibited deductions

There are several deductions that are illegal and could result in penalties:

1. Food and lodging costs - Employers are responsible for providing food and accommodation for their domestic helper at no charge. Deducting these costs is not allowed.
2. Medical expenses - Employers must bear the full cost of medical care, including insurance coverage, check-ups, and hospitalisation fees.
3. Work permit and levy costs - The costs associated with hiring a helper, such as work permit fees and levies, are the employer’s responsibility and cannot be passed on to the helper.
4. Travel expenses for work - Any transportation costs incurred for work purposes, such as running errands or accompanying family members, should be covered by the employer.
5. Uniforms and work equipment - If you require your helper to wear a uniform or use specific tools for household chores, these must be provided at no cost.

Consequences of unlawful deductions

Employers who make unauthorised deductions from their helper’s salary may face serious repercussions, including:

• Fines and penalties under the EFMA
• Being barred from hiring a domestic helper in the future
• Potential legal action from the helper
• Damage to reputation and employer credibility

Best practices for employers

To maintain a fair and lawful employment relationship, employers should:

• Clearly discuss salary terms with the helper before employment begins.
• Provide a written contract detailing any agreed deductions.
• Keep accurate salary records to ensure transparency.
• Respect helper’s rights and provide fair compensation in line with MOM regulations.

While some deductions are permissible under mutual agreement, employers must be careful to avoid any illegal salary reductions. Ensuring fair treatment of your domestic helper not only builds trust but also fosters a harmonious working relationship. 

By adhering to Singapore’s employment laws, you can ensure that both you and your helper have a smooth and compliant employment experience.

For more guidance on hiring and managing domestic helpers in Singapore, visit Ministry of Helpers today!

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