MOM keeps eye on companies at risk of salary defaults

Singapore

EMPLOYERS who are seen to be at higher risk of defaulting on salaries will have to tell the Ministry of Manpower (MOM) whether they have been paying salaries on time.

MOM has sent out about 200 letters every quarter this year to such employers. They were identified by indicators such as late payment of foreign worker levies and being in financial difficulty. If an employer reports that he is up to date in salary payments but his workers later file claims, the employer can be penalised for making false declarations.