HRSINGAPORE Community

Foreign Worker Allowance

Dear HR Community,

We have foreign workers who we employ with work permits (WP).

When their contract ends, we feel that we are obliged to pay them an allowance until they leave Singapore.

My questions are:

1. Do employers have to pay their WP holders an allowance after their contract ends and until they leave Singapore?

2. If you do, how much do you pay them nowadays while they await their flights considering that they may not get a flight home so easily sometimes. Appreciate the sharing of any computation of allowances.

Thank you in advance for your replies and advice.

Regards

Grace

 


 

HR Poll: Do employers have to pay their WP holders an allowance after their contract ends and until they leave Singapore?

Yes: 11.43%

No: 71.43%

Maybe: 5.71%

Not Sure: 11.43%

 


 

REPLIES & COMMENTS: 

Prior to their expiry of the contract, inform them that the company is cancelling the WP and will provide a one-way ticket to send them home. If they can find a new employer, then give a transfer letter and save on the air ticket home payable by the company. Otherwise, proceed to buy the air ticket and inform them of the details of the flight. - Shelly

You do not need to. You have to cancel his work permit and issue the special pass, once he stops working, you do not need to pay him. But you have to provide lodging until he leaves Singapore. - Tracey

It depends on what is written in their appointment letter or the discretion of each employer if it is not regulated. - Ann

As far as I am aware, it is not mandated by law that employer needs to pay WP holders an allowance after their contract ends and until they leave Singapore. An employer is only responsible for the repatriation of the WP holders. Of course, out of goodwill, you may want to provide an allowance. Perhaps accordingly to Singapore per diem rate? - Sharon

It all depends on the performance of the worker. We give a token of appreciation to those whose performance is good and who have worked for more than 2 years. - Ivy

Hi Grace, if you are referring to this clause, then yes, the company has to provide.

The employer is responsible for the upkeep and maintenance of the foreign employee in Singapore, including the provision of adequate food and medical treatment; and bearing the costs of such upkeep and maintenance.

As my company provides dormitory housing for our foreign workers – we do not need to pay housing allowance/accommodation. Hence, we only pay meal allowance of $8/per calendar day

On a side note, we have mutual agreement with our staff to work until nearer the date of their flight date and will not cancel their work permit so soon (especially Chinese workers, due to their country's situation, in case the flight gets cancelled). For other countries, so far there's no issue to cancel on their last day.

Elizabeth

The employer is obliged to provide their upkeep maintenance during this period of time until they repatriate to their home country. - Wendy

 


 

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