NON-PAYMENT OF SALARIES BY EMPLOYERS

NON-PAYMENT OF SALARIES BY EMPLOYERS

10.

Ms Sylvia Lim: ask the Minister for Manpower (a) in 2009, how many complaints were made to the Ministry so far about non-payment, under-payment or delayed payment of salaries; and (b) whether stricter enforcement or penalties are needed to increase employers' incentive to comply with their salary obligations.

Mr Gan Kim Yong: In the first three quarters of this year, MOM received about 8,400 reports on non-payment, late-payment and under-payment of salary. This is about 10% higher compared to the same period last year, due mainly to the economic downturn.

MOM managed to resolve more than 80% of the cases received and helped close to 6,000 workers recover their salaries, in part or in full. About 10% of the cases were unsubstantiated or were subsequently withdrawn by the claimant. The remaining are pending settlement or under investigation.

Penalties have been enhanced in January 2009. The maximum penalty fine for salary non-payment and under-payment was increased from $1,000 to $5,000 for first time offenders, and from $2,000 to $10,000 for repeat offenders. The maximum composition fine was also increased from $200 to $1,000. They are adequate for now, but MOM will continue to monitor their effectiveness.

MOM does not depend solely on enforcement and penalties to improve compliance. MOM also works with its tripartite partners to educate employers about their responsibilities under the Employment Act, including prompt payment of salaries. In addition, we reach out to workers through our outreach programmes to inform them of their rights under the Employment Act and encourage them to approach MOM should they require assistance.

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