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SINGAPORE (THE NEW DOCUMENT) – Starting next month, employers must pay a one-time placement fee that incoming foreign domestic workers (FDW) used to pay.
Lynda Lee, a single mother who has relied on foreign domestic workers from Indonesia for the past 10 years, is resigned to looking elsewhere to replace her former servant.
This is because a new decision by the Indonesian authorities to pass the cost of the FDW placement fee to employers starting next month will add an additional cost of up to $ 3,000.
The one-time fee to cover expenses such as transportation, accommodation and medical examinations incurred by new foreign domestic workers arriving in Singapore used to be recovered from the maid by deducting her salary for months.
A spokesperson for the Ministry of Manpower (MOM) told The New Paper that it has received comments from employment agencies here that the Indonesian authorities are enforcing a “zero placement fee policy” as of January 1 next year.
The ruling means that employers must now pay this fee to allow new foreign domestic workers from Indonesia to come to Singapore debt free.
Like many employers, Ms. Lee, who lives with her two young children and their 84-year-old parents, refuses to pay the additional expense.
The 52-year-old sales manager said she will consider other nationalities to replace the assistant who had just left her job.
She told TNP: “It is hard enough to hire a new maid. I have no choice but to look elsewhere.”
Indonesian maid Rini Supriyati said $ 340 was deducted from her salary over nine months to pay off her debt when she started working here 11 years ago.
The 35-year-old said: “It was difficult because I had to support my husband and three-year-old son. This new rule will help the new maids.”
But TNP industry players spoke out to feel that the rule may end up hurting both the employer and foreign domestic workers.
Ms K. Jayaprema, president of the Association of Employment Agencies, said employers can look for cheaper maids from other countries such as Myanmar.
She said the placement fee is $ 2,000 on average, but it can go up to $ 3,000, and an FDW takes about six months to pay.
Of the 252,000 foreign domestic workers in Singapore as of June this year, 127,000 are Indonesian.
The minimum wage for an Indonesian is $ 550 per month and $ 570 and $ 450 for Filipino and Burmese foreign domestic workers, respectively.
Ms. Jayaprema said, “What if the FDW decides to leave a month or two after the employer pays the fee? There is currently no recourse for this.”
Financial burden
Brian Tan, director of the cleanup agency Nation Human Resources, said the Covid-19 pandemic has already been a financial burden for employers who must pay up to $ 1,700 for swab testing and quarantine of an incoming FDW at facilities. dedicated.
He added: “We hope that MOM can consider talking to the Indonesian government to help ease some of the burden on Singaporean employers.
The MOM spokesperson said: “Employment agencies are discussing with their Indonesian recruiters how they can meet the requirements.
“Employers who have urgent needs and are facing delays in recruiting foreign domestic workers from Indonesia can discuss their options with employment agencies.
“In recent weeks, MOM has been approving an increased number of FDWs from various countries to enter Singapore.”
In a radio interview, the president of the Center for Domestic Employees, Yeo Guat Kwang, expressed concern about the unintended consequences that this policy will have on employers.
“If an employer is paying a high price to hire an Indonesian foreign domestic worker (FDW), there could be a perception among employers that the higher recruitment costs equate to a more skilled independent domestic worker.
“We are concerned that if the FDW does not meet the expectations of the employer … due to a cultural mismatch, perceived lack of relevant skills or communication problems, then it will lead to a breakdown in the employment relationship,” he said.
“The FDW can end up being sent back to the agent or worse, repatriated in the early stages of employment.”
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