Low-wage workers facing salary problems to get financial assistance

There is good news for low-wage workers who are facing salary problems in Singapore as they will get help through a fund which will pay up to SGD1000 to each claimant.

The money will be a sort of financial relief to the low-wage employees if their employers are unable to pay their salaries, and will last till they get a new job. It will cover the bottom 20th percentile of the workforce.

Low-wage workers facing salary problems in Singapore would receive SGD1000.
Low-wage workers facing salary problems in Singapore would receive SGD1000. Photo courtesy: exchange rate calculator

The fund is being managed by Tripartite Alliance for Dispute Management (TADM) and the amount will be payable from April 1. TADM will operate one centre at Devan Nair Institute for Employment and Employability focusing on the local employees and another at the Ministry of Manpower’s service centre catering to the work-pass holders.

Under the new rules passed by Parliament last year,  all employees, regardless of their income levels, can bring their salary-related claims to the TADM by requesting for mediation – within one year after the claim arises, or six months if the employee has left the company.

These include claims of up to SGD20,000 – such as unpaid salary, maternity and retrenchment benefits – from all workers ranging from interns under a contract of service to professionals. The limit is SGD30,000 for union members.

It costs SGD10 to register a claim below SGD10,000 with the TADM, or SGD20 otherwise.