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CDE: Pay Domestic Workers' Salaries Electronically

Centre For Domestic Employees enhances outreach efforts to Foreign Domestic Workers to address their concerns and needs.
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By Ramesh Subbaraman 22 Jan 2018
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There are some 243,000 foreign domestic workers (FDWs) working in our homes helping to take care of the elderly and supporting working parents.

Like any other worker, they too face certain issues.  To help look into their needs, the Centre for Domestic Employees (CDE) was set up by the Labour Movement in 2016.

FDWs seeking help

In 2017, a total of 607 FDWs turned up at CDE outlets for help, up from 517 the year before.

Salary disputes were the most common issue raised by them.

Through its efforts and working with the employers and the Ministry of Manpower, CDE helped recover $52,543 in salaries in 2017. Since CDE’s launch in 2016, the amount  totals up to $113,668.

According to the CDE Chairman Yeo Guat Kwang, there had been instances when the amount due to the FDW had ballooned to a large figure.

Employers had then requested for instalment payments to their FDW but some of them defaulted again.

Survey with FDWs and employers

To counter these issues, CDE is strongly advocating for the e-payment of salaries of FDWs.

To better understand the concerns of both parties, it surveyed 1,000 FDWs and 1,000 employers last year.

About 79 per cent of FDW respondents said they received their salaries in cash.

However, 60.3 per cent of them also said they were open to utilising bundled electronic bank services to receive their salary and to send money home. Amongst them, FDWs from Myanmar are the most open, followed by those from the Philippines and Indonesia.

CDE said more details of the survey results will be released in the next few months.

Collaboration with POSB

Since the last quarter of 2017, CDE has been working closely with POSB and employment agencies to help FDWs open a special POSB Payroll Account (FDW) to receive their salary electronically.

Currently, FDWs can open the account at the two CDE satellite offices at City Plaza and Peninsula Plaza.
There are a few steps to follow to open the account.

First, two consent forms - one for the employer and the other for the employee - have to be filled up.

FDWs also have to bring along their passport (with more than 6-months validity), their work permit card or the Ministry of Manpower’s In-Principle Approval Letter.

They also have to set up the FDW’s email address and mobile number before coming to the satellite centre.

As of mid-December 2017, about 1,913 applications were submitted to the bank for processing through this collaboration, said Mr Yeo.

“It is important for us to ensure that the payments are made transparently and more importantly, promptly.
Furthermore, based on our experience, we realise that for monies that have been owed for too long, we find it very difficult to recover them for the workers. CDE is now making a formal call to the Government to make the safekeeping of salary illegal,” said Mr Yeo.

CDE is also working with MOM to roll out a plan to help new FDWs open a bank account upon arrival and opt in to have their salary paid through the e-payment way.

Other Plans

CDE marked its second anniversary celebrations with outreach programmes at various venues where FDWs congregated on 21 January 2018. They announced several programmes for the long term.

On the cards, there will be a new satellite outlet in Lucky Plaza at Orchard Road to bring CDE closer to Filipino FDWs. CDE currently has two outlets. 

CDE will also ramp up its presence at malls and parks to provide on-the-spot help to FDWs who need it.

It is currently developing a new and bigger facility that will increase its capacity to be able to shelter some 200 FDWs.

The new facility which is expected to be ready by year end will also provide training courses and enrichment programmes within the premises for FDWs in future.

In 2017, CDE helped to shelter 141 FDWs, up from 110 in 2016.

Good To Know
Centre for Domestic Employees (CDE) :24-hour toll free helpline: 1800 CALL CDE (1800 2255 233).

Satellite Outlets

CDE @ City Plaza (810 Geylang Road #01-26 Singapore 409286)

CDE @ Peninsula Plaza (111 North Bridge Road #02-42 Singapore 179098)