The following article was published in the Straits Times on 24 Dec 2004.
Let market decide maid wages, agencies told
By Alexis Hooi
Straits Times, 24 December 2004
MAIDS' wages in Singapore should be left to market forces and foreign governments should not impose minimum wages on employers here, said the Ministry of Manpower (MOM) in a letter to employment agencies here last month.
The statement was in response to calls by the Indonesian Embassy here to raise the minimum salary of Indonesian maids to $280 a month from the current $230 from Jan 1, following MOM's criteria that new maids must be older and better educated.
In its letter, released to the media yesterday, MOM said: 'As a matter of national policy, MOM also does not prescribe minimum wages for all workers in Singapore, whether local or foreign.
'Whether wages should increase or decrease is best determined by market demand and supply for labour, skills, capabilities and competency to perform the task.'
It added that 'all foreign workers, including domestic workers who choose to work here, are governed and protected under Singapore rules and regulations'.
As part of their work permit conditions, employers must also agree to ensure their maids' well-being, said MOM.
Earlier, maid agencies had supported the proposed increase in the minimum wage. Some said it would make Indonesian maids' wages more comparable to those of their counterparts in other places, such as Taiwan and Hong Kong, where they are paid about $300 or more.
The embassy proposal followed a new ruling announced in September, that from next year, all new foreign maids must be at least 23 years old and have at least eight years of formal schooling.
Currently, the only criterion for the 8,000 to 9,000 new maids who arrive each month is that they are at least 18 years old. About three-quarters of the 140,000 or so maids here are at least 23.
MOM introduced the new age and education criteria as an influx of maids was expected with the lowering of the foreign maid levy. It was cut to $250, from $345, for families with young children or with elderly parents or grandparents.
MOM said older, more experienced maids will likely be better able to care for children and the elderly, and pose fewer problems for employers.
