Helper salary advance and loans: what MOM allows and how to set one up

You can give your helper a salary advance or a small loan. MOM's employer guide asks you to record loans and advances, and the same guide says no deductions are allowed from her salary. That makes a helper salary advance a short written plan. Her full salary still goes out on time, each repayment gets noted, and you both sign. Her work permit, passport and money stay with her.

How to give a helper salary advance, step by step

1. Ask what the money is for and when she needs it. Listen to the whole story before you name an amount.
2. Decide how much you could lend without strain, even if part of it never came back. Keep it interest-free, so it stays a plain advance.
3. Write the plan on one page: the amount, the date you hand it over, each repayment and its date, and what happens if the job ends early. You both sign, and she keeps a copy.
4. Pay her full salary on time every month. MOM's salary rules set the deadline at 7 days after the salary period ends, and MOM's employer guide says no deductions are allowed.
5. Record each repayment on its own line. If you pay in cash, MOM says you both sign every salary record, so add the repayment there with both signatures.
6. Leave her work permit, passport, bank card and savings with her. MOM's work permit conditions bar you from keeping her work permit, and MOM says you can't hold her money or bank card even if she asks.
7. Pay her rest-day compensation in full. MOM's work permit conditions say it goes out with her next salary, so keep it out of the loan plan. Our helper rest day rules guide covers the rate.
8. Talk early if a repayment slips. Agree a smaller amount or a later date, and both sign the change.
9. Settle any balance before her last day if she leaves. MOM's conditions say all salary and money you owe her must be paid before she goes home.

What MOM allows and what it doesn't

MOM's money rules for a migrant domestic worker (MDW), its term for your helper, sit in two documents. The work permit conditions bind you as her employer. The employer guide covers the same ground in plain words, as MOM's advice to you.

The two MOM texts on deductions fit together this way. The guide's answer is no deductions. The conditions add that fixed monthly deductions can't go above what you declared to MOM without her written agreement and a written notice to MOM. The plan in the steps above avoids both questions: she gets her full pay, then repays you on the dates you agreed.

Placement fee loans and the agency's cap

A placement loan is money you lend your helper to cover her placement fee to the agency, and she repays you. MOM's FAQ calls it a loan extended by an employer for the placement fee.

MOM caps what a Singapore agency can collect from her. It's no more than 1 month of her fixed monthly salary for each year of service, capped at 2 months' salary. Her in-principle approval (IPA) letter from MOM shows her salary and the fees paid to the Singapore agency. Check the amount she's repaying against that letter.

If the fee looks higher than the cap, MOM says charging excessive agency fees is an offence, and an overcharged worker can contact MOM for help. MOM also notes that some agencies don't ask employers to extend placement loans at all. Tell the agency at the start if you'd prefer that.

For what the agency charges you, and the salary and levy totals, see the cost of a domestic helper in Singapore.

If she leaves or transfers before the loan is repaid

For a placement loan, MOM's answer is to check the contract you signed with the agency. It sets out whether you get a full or partial refund of the loan, and in what situations. Read that clause before you agree to anything with your helper.

A personal advance has no agency refund behind it. Sit down with her before her last day and agree the balance in writing. You could say: "There's still some of the advance left. Can we write down how you'll repay it, and both sign?"

MOM's conditions still apply at the end: every salary and payment you owe her is paid before she goes home. If she's moving to a new employer, the steps and timing are in our guide to transferring a domestic helper.

When your helper owes a moneylender

Start with a calm question, without blame. Ask who the lender is, how much she owes, and whether the lender is on the Ministry of Law's official list. The Registry of Moneylenders asks borrowers to check that list before they borrow.

Lenders on the list follow set limits. For a foreigner living here who earns less than $10,000 a year, the Registry caps unsecured borrowing at $500 in total across all moneylenders. Interest can't go above 4% a month. The Registry also says it's not acceptable for a lender to keep a borrower's passport or work permit, and asks borrowers to report it.

Loan sharks are a different matter. Their lending is illegal, and the Singapore Police Force says these lenders use harassment and threats to get paid. SPF asks households to warn domestic workers too, since getting involved can cost a worker her work pass. There's one more trap to mention to her. Under the Moneylenders Act, a person whose bank account, ATM card or SIM card is used for illegal lending is presumed to have helped the lender.

You could say: "If anyone asks to borrow your bank card or SIM card, please say no and tell me. If someone is chasing you for money, tell me early and we'll work out the next step together." For regular check-ins and house rules that make this easy to raise, see how to manage a domestic helper.

When to call MOM or the police

• Her salary hasn't been paid: MOM's MDW Helpline, 1800 339 5505, or report it online (MOM).
• She'd rather talk to someone outside your home: the Centre for Domestic Employees helpline, 1800 225 5233, open 24 hours (listed by MOM).
• The agency charged her more than MOM's cap: contact MOM, which treats excessive agency fees as an offence (MOM).
• A moneylender on the official list breaks the rules or keeps her documents: the Registry of Moneylenders, 1800-2255-529 (Ministry of Law).
• Loan sharks harass her or your household: the police hotline, 1800-255-0000, or 999 if it's urgent (Singapore Police Force). The Registry also asks for a police report on any harassment.
• Anyone at home is hurt or threatened: call 999, then see family violence help in Singapore.

Frequently asked questions

Can I give my helper a salary advance?

Yes. MOM's employer guide asks you to record loans and advances, so write it down and both sign. Pay her full salary on time each month and record each repayment separately. Keep the amount to what you could afford to lose.

What is a maid loan in Singapore?

It usually means a placement loan: you pay her placement fee to the agency upfront and she repays you. MOM caps the Singapore agency's fee at 1 month of her salary per year of service, up to 2 months. Her IPA letter shows the fee paid.

Can I deduct the maid placement fee loan from her salary?

MOM's employer guide says no deductions are allowed from her salary, and its work permit conditions add that fixed monthly deductions can't rise above what you declared to MOM without her written agreement and a written notice to MOM. Paying her in full and recording each repayment keeps you clear of both. Has the agency suggested salary deductions? Ask MOM before you agree.

What should I do if my helper keeps borrowing money?

Ask what's behind it: a family emergency at home, an agency debt, or a lender here. Agree a limit you're both clear on, and finish one advance before starting the next. If she'd rather talk to someone outside the family, the Centre for Domestic Employees runs a 24-hour helpline on 1800 225 5233.

My helper owes money to a moneylender. What should I do?

First check whether the lender is on the Ministry of Law's official list, because that decides who you call. A listed lender that breaks the rules goes to the Registry of Moneylenders on 1800-2255-529. For a loan shark, or anyone harassing her or your family, call the police on 1800-255-0000, or 999 when it's urgent.

Can I keep her passport until she repays the loan?

No. MOM asks employers not to keep a helper's passport, because it's her personal document. Its work permit conditions also bar you from keeping her work permit. A loan doesn't change either.