Higher pay for Indonesian maids from next year
By Amelia Teng, The Straits Times, 11 Nov 2015
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Employers will have to pay more to hire an Indonesian maid from next year.
The Indonesian Embassy had announced in a letter to Singapore maid agents last month that maids from its country must be paid at least $550 a month, up from the current $500. The last round of increase was in September last year, from $450 to $500.
There are about 125,000 Indonesian maids in Singapore, making up about half of the foreign domestic worker population here.
Indonesian Embassy counsellor Sukmo Yuwono told The Straits Times that the increased minimum wage applies to domestic helpers coming to work here from January next year, and those renewing their contracts next year. He cited several reasons for the Indonesian government's decision, including protecting Indonesian women who go abroad to work.
"We have to protect the income of the Indonesian maids. Singapore also doesn't have a minimum wage, unlike others like Taiwan and Hong Kong," he said.
Mr Gary Chin, managing director of Nation Employment, a maid agency, said that higher salaries might attract more applicants to work here.
"But the increases might be too frequent. Employers need some time to digest and get used to it. Some might consider hiring workers of other nationalities," he said, adding that domestic workers here are paid $450 to $550 each month.
By Amelia Teng, The Straits Times, 11 Nov 2015
The Indonesian Embassy had announced in a letter to Singapore maid agents last month that maids from its country must be paid at least $550 a month, up from the current $500. The last round of increase was in September last year, from $450 to $500.
There are about 125,000 Indonesian maids in Singapore, making up about half of the foreign domestic worker population here.
Indonesian Embassy counsellor Sukmo Yuwono told The Straits Times that the increased minimum wage applies to domestic helpers coming to work here from January next year, and those renewing their contracts next year. He cited several reasons for the Indonesian government's decision, including protecting Indonesian women who go abroad to work.
"We have to protect the income of the Indonesian maids. Singapore also doesn't have a minimum wage, unlike others like Taiwan and Hong Kong," he said.
Mr Gary Chin, managing director of Nation Employment, a maid agency, said that higher salaries might attract more applicants to work here.
"But the increases might be too frequent. Employers need some time to digest and get used to it. Some might consider hiring workers of other nationalities," he said, adding that domestic workers here are paid $450 to $550 each month.
Another agency owner, who declined to be named, said that the increase came as a surprise as worker salaries was not one of the issues raised at a recent meeting an Indonesian government official had with several maid agencies.
"We discussed many other issues like regulation and loans, but salary was not one of them," he said.
"We will continue to face increasing salaries if we don't improve the work conditions here," he said. "The supplying countries can't change our laws and regulations. The only thing they can control is the salary of their workers."
When contacted, the Ministry of Manpower said that it has not received any official notice about the new minimum wage set by the Indonesian government.
"While source countries may choose to impose additional requirements administered by the foreign government or embassy, employment agencies and employers should assess whether they can fulfil these requirements when recruiting foreign domestic workers and making their hiring decisions respectively," a spokesman said.
"While source countries may choose to impose additional requirements administered by the foreign government or embassy, employment agencies and employers should assess whether they can fulfil these requirements when recruiting foreign domestic workers and making their hiring decisions respectively," a spokesman said.
Comparison of Minimum Wages
By Seow Bei Yi, The Straits Times, 12 Nov 2015
Minimum monthly salary of domestic workers from three most popular countries
INDONESIA - From $550 starting in 2016
THE PHILIPPINES - From US$400 (S$570)
MYANMAR - From $450
By Seow Bei Yi, The Straits Times, 12 Nov 2015
Minimum monthly salary of domestic workers from three most popular countries
INDONESIA - From $550 starting in 2016
THE PHILIPPINES - From US$400 (S$570)
MYANMAR - From $450
Demand for Indonesian maids likely to fall in Singapore after pay rise
By Seow Bei Yi, The Straits Times, 12 Nov 2015
With the minimum pay for Indonesian maids set to rise from $500 to $550 in 2016, maid agencies in Singapore expect to see a fall in demand for them with the wage hike.
But they do not expect this to last for too long.
"After the second month, the market tends to adapt," said Mr Gary Chin, managing director of maid agency Nation Employment, citing the experience from a previous wage hike.
The previous increase was in September last year, when the minimum pay for Indonesian maids rose from $450 to $500.
By Seow Bei Yi, The Straits Times, 12 Nov 2015
With the minimum pay for Indonesian maids set to rise from $500 to $550 in 2016, maid agencies in Singapore expect to see a fall in demand for them with the wage hike.
But they do not expect this to last for too long.
"After the second month, the market tends to adapt," said Mr Gary Chin, managing director of maid agency Nation Employment, citing the experience from a previous wage hike.
The previous increase was in September last year, when the minimum pay for Indonesian maids rose from $450 to $500.
The Indonesian Embassy announced the latest increase in a letter in October to Singapore maid agents. One of the reasons cited was to protect the income of Indonesian women who go abroad to work. Singapore agents have to abide by the minimum wage or risk being banned.
There are about 125,000 Indonesian maids here, making up around half the foreign domestic worker population.
The increase applies to domestic helpers coming to work here from January, and those renewing their contracts in 2016.
While demand may stabilise in the short term, in the longer term wage hikes may cause employers to look for maids from elsewhere, said Mr Benny Liew, director of Comfort Employment.
While Filipino maids were in great demand in the past for their command of English, they are less sought after now, partly because of their higher starting salaries of US$400 (S$570).
Ms Dione Yap, 43, who is self-employed, said salary was among her considerations when she hired a maid from Myanmar.
The pay for an experienced Myanmar maid is around $500, comparable to the basic pay for a fresh hire from Indonesia.
Sales executive Fiza Sulaiman, 32, said she already pays her Indonesian maid around $550 each month and does not think she will be affected much.
She added that the pay rise was good for maids who do not often get one from employers.
According to Mr Liew, the wage increase may also lead to more people renewing their maids' contracts - instead of terminating them for new hires - and conducting private negotiations to pay them less than the minimum wage.
The smaller maid agencies expect to be harder hit by the new minimum pay.
Ms Sa'diah Saidi, owner of SJ Global Employment, said most of the maids she places are from Indonesia but she may have to look to Myanmar or Cambodia if wages continue to rise.
Some agents in Indonesia have also stopped recruiting in the meantime until they are clear on the new regulations, so supply may shrink.
She added that if wages continue to increase, it may become a luxury for middle-income families to have a maid, even if they need one.
Maids' pay rise in Singapore: Boon or bane?
By Joanna Seow, The Straits Times, 12 Nov 2015
The Indonesian Embassy has told agents that from 2016, new contracts for maids from its country should include a monthly salary of at least $550, up from the current $500.
While the move may appear to be a boon for Indonesian maids, more could end up struggling to find jobs if employers turn to cheaper options from Myanmar, for instance.
With the change, the minimum wage for Indonesian maids will be closer to the minimum monthly pay of US$400 (S$570) mandated for Filipino maids by their government.
There are around 125,000 Indonesian maids in Singapore, and about 70,000 maids from the Philippines.
These make up the lion's share of the more than 227,000 domestic helpers here, with others coming from countries such as India, Sri Lanka and Thailand.
The pay rise could also see the booming maid transfer business, which works with helpers already working in Singapore, get even bigger.
If employers have to pay $550 a month for a new maid, they may think it more worth their while to hire someone who is already trained and familiar with local culture.
Still, employers may lose out if the new pay rise leads to a price war - with governments of various countries setting increasingly higher standards of pay for their nationals. The Philippines government, however, has not increased its stipulated minimum monthly salary for maids for more than a decade.
By Joanna Seow, The Straits Times, 12 Nov 2015
The Indonesian Embassy has told agents that from 2016, new contracts for maids from its country should include a monthly salary of at least $550, up from the current $500.
While the move may appear to be a boon for Indonesian maids, more could end up struggling to find jobs if employers turn to cheaper options from Myanmar, for instance.
With the change, the minimum wage for Indonesian maids will be closer to the minimum monthly pay of US$400 (S$570) mandated for Filipino maids by their government.
There are around 125,000 Indonesian maids in Singapore, and about 70,000 maids from the Philippines.
These make up the lion's share of the more than 227,000 domestic helpers here, with others coming from countries such as India, Sri Lanka and Thailand.
The pay rise could also see the booming maid transfer business, which works with helpers already working in Singapore, get even bigger.
If employers have to pay $550 a month for a new maid, they may think it more worth their while to hire someone who is already trained and familiar with local culture.
Still, employers may lose out if the new pay rise leads to a price war - with governments of various countries setting increasingly higher standards of pay for their nationals. The Philippines government, however, has not increased its stipulated minimum monthly salary for maids for more than a decade.
In the end, it comes down to supply and demand. Unless there are more Singaporeans stepping up to the roles of caregivers and housekeepers, foreign domestic helpers may continue to command better wages.
And why not? They still earn less than most Singaporean low-wage workers.
There is something to be said for changes that make for a more equitable society.