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The Chinese Economy, 51: 154–174, 2018
Copyright # Taylor & Francis Group, LLC
ISSN: 1097-1475 print/1558-0954 online
DOI: 10.1080/10971475.2018.1447831
The Foreign Domestic Workers in Singapore, Hong
Kong, and Taiwan: Should Minimum Wage Apply to
Foreign Domestic Workers?
Chieh-Hsuan Wang
Assistant Professor, Department of Applied Economics, Fo Guang University, Yilan, Taiwan
Chien-Ping Chung
Associate Professor, Department of International Business, Shih Chien University, Zhongshan,
Taipei, Taiwan
Jen-Te Hwang
Professor, Department of Banking and Finance, Kainan University, Taoyuan, Taiwan
Chia-yang Ning
Ph. D. Student, Department of Economics, National Taipei University, Taipei, Taiwan
With the number of foreign domestic workers increasing in different countries around the world,
governments have also begun to pay attention to issues related to the rights of foreign domestic
workers. This article presents a comparison and analysis of foreign domestic workers employment
policies, working conditions, and minimum wage in Singapore, Hong Kong, and Taiwan. We found
foreign domestic workers in Asian countries lack access to regular forms of migration and safe
migration channels; low wages; long working hours; exploitative working conditions; nonrecogni-
tion of domestic work under labor laws, and mistreatment in domestic work conditions. In addition,
this article investigates from social welfare, economic, and legal perspectives, the feasibility of
applying minimum wage to foreign domestic workers. The results show that foreign domestic
workers’ wages should not be decoupled from the minimum wage, and foreign domestic workers
should not be treated as a separate group of workers in minimum wage policy. Long-term care
systems should incorporate the foreign domestic worker labor pool, which could provide the
additional personnel necessary for the nation’s long-term care.
Keywords: foreign domestic workers, long-term care, minimum wage
none defined
Address correspondence to Chien-Ping Chung, Associate Professor, Department of International Business, Shih
Chien University, No.70, Dazhi St., Zhongshan, Taipei, 104, Taiwan (R.O.C.). E-mail: thomas6311@g2.usc.edu.tw
INTRODUCTION
International labor mobility is increasingly becoming an important component in driving
global trade and integration. In the past decade, there has been a surge in the number of
low-skilled female workers from developing countries such as the Philippines, Indonesia,
Vietnam, Thailand, and Sri Lanka migrating to newly industrialized countries as domestic
workers. These movements generate large labor flows for both the source and the host
countries.
Rapid population aging in the developed world has led to increasing health care and social
care burdens, prompting countries “to look for new ways of paying for and providing long-term
care for increasing numbers of older and frailer people” (Healy, 2002). The increasing diversity
of long-term care services, settings, clients, and workers increase the challenges of assuring
high quality in developed countries. In addition, neither country will be able to meet the future
demand for services without recruiting and retaining more professional and paraprofessional
workers. Low wages, low prestige, and dangerous working conditions will have to improve
to expand the pool of workers willing to do the difficult tasks associated with long-term care
(Gibson & Redfoot, 2007).
Lastly in some Asian countries, increasing the allocation of public spending on education,
increasing women’s access to employment, and implementing anti-discrimination laws and
practices may raise gender equality in employment (Knight, 2016). In addition, as family size
shrinks and women continue to engage in the workforce (Anderson, 2007), reliance on migrant
live-in domestic workers has increased across several countries in Asia, Europe, and North
America, allowing for the elderly adults to be cared for at home rather than in an institutional
setting (Østbye, Malhotra, Malhotra, Arambepola, & Chan, 2013). In the future, developed
countries are likely to rely increasingly on foreign domestic workers to provide care.
In order to provide long-term care for its increasing numbers of elders, the number of foreign
domestic workers imported into Singapore, Hong Kong, and Taiwan have risen rapidly over the
years. This is far from surprising due to the fact that local domestic workers in these countries
cost much more than the foreign domestic workers. Not only that, they ask for more freedom;
they refuse to live with their employers and they demand clearly defined job descriptions and
normal leave schedules. Employers cannot and dare not demand that they work beyond their
standard work load.
But the situation is entirely different for foreign domestic workers from other countries—
they cost less to hire and they are quick to respond to calls. Not only that, employers are able
to ask them to handle all household chores including cooking, cleaning, and taking care of
seniors and children alike. In addition to being less of a financial burden, being able to offer
care around-the-clock is another priority for prospective employers of foreign domestic work-
ers. This is the primary reason why most employers still prefer foreign domestic workers and
the main reason why the number of foreign domestic workers that come to Singapore, Hong
Kong, and Taiwan have risen instead of falling over the years. The foreign domestic workers
are playing an important role to take care of the elderly and the expansion in home- and
community-based care capacity, taken together, will support caregivers and help them balance
their caregiving and work obligations.
Exploitation of foreign domestic workers’ rights has been a frequent phenomenon because
they come from different countries and social and cultural backgrounds and as such, their
SUGGESTION: FOREIGN DOMESTIC WORKER 155
rights have received inadequate protection compared to the domestic workers.
Foreign domestic workers constitute a significant proportion of migrant workers worldwide.
Live-in foreign domestic workers, however, not only provide essentially all-day childcare
but also perform other household tasks such as cooking and cleaning (Chan, 2006; Kremer &
Watt, 2008). Given the nature of their occupation, foreign domestic workers are required to
work in private households with little or no visibility. In Asian countries including
Singapore, Taiwan, and Hong Kong, foreign domestic workers are regulated by a work
permit system that ties the migrant worker to an individual employer and allows her to work
for only a single household. Consequently, their situation is less clearly defined compared
with foreign workers in specific industries. As a result, some are often required to standby
for work around the clock, with their employers having absolute control over their job
contents.
In addition, long working hours are especially common among live-in domestic
workers, who usually work on a full-time basis and are, in many cases, expected to be
available at all times (Esim & Smith, 2004; Gallotti, 2009; Kundu, 2007; Rodriguez,
2007; Sabban, 2002; Tous, Veasna, & Cormaci, 2010). Foreign domestic workers are
usually on duty around the clock and their work depends on the needs of their employers.
Also, they work in an enclosed environment and there is usually a language barrier,
which isolates them from society at large. They cannot easily obtain government
resources and support, and it is difficult to develop a social support system for them. More-
over, domestic workers are frequently excluded from minimum wage coverage—despite
the fact that some form of minimum wage legislation is almost universally in place (see
ILO, 2010e). For example, Taiwan, Japan, and the Republic of Korea all have minimum
wage systems in place, but their minimum wage Acts exclude domestic workers from their
scope.
With the number of foreign domestic workers increasing in different countries around the
world, governments have also begun to pay attention to issues related to the rights of foreign
domestic workers. In an effort to safeguard labor rights, different governments have taken
different approaches in formulating definition of foreign domestic worker rights and relevant
policies. The practice of applying the minimum wage to foreign workers (excluding foreign
domestic workers) in Taiwan was not motivated only by the government’s insistence on the
principle of equality; the purpose is also to comply with conventions of the International Labor
Organization (ILO) and to present a favorable image to the world. However, there has never
been any serious debate on the issue of applying minimum wage to foreign domestic workers
until now.
This article presents a comparison and analysis of foreign domestic workers employment
policies, working conditions and minimum wage in Singapore, Hong Kong, and Taiwan. After
the introduction, the next section of this article presents a quick overview of foreign domestic
workers’ employment policy and working conditions in Singapore. The third section provides a
concise summary of foreign domestic workers’ employment policy and working conditions in
Hong Kong, and the fourth section focuses on foreign domestic workers’ employment policy
and working conditions in Taiwan. The fifth section covers the comparison of foreign domestic
workers’ employment policies, working conditions and minimum wage in Singapore, Hong
Kong, and Taiwan. Next, we examine the feasibility of applying minimum wage to foreign
domestic workers, followed by conclusions.
156 C.-H. WANG ET AL.
FOREIGN DOMESTIC WORKERS EMPLOYMENT POLICY AND WORKING
CONDITIONS IN SINGAPORE
As with other developed nations where rapid population aging has led to increasing health care
and social care burdens, Singapore has searched for ways of paying for and providing long-term
care for its increasing numbers of elders and has become one of the fastest aging populations in
Asia. Singaporeans aged 65 years and older are expected to make up 19%(or 796,000) of the
population by 2030, up from 7.3%(or 235,000) in 1999, has reinforced its basic principle of
rendering the family the “primary caregiving unit” and home-based care as the highly preferred
option for eldercare (Yeoh & Huang, 2009).
In 1981, in an effort to facilitate an industrial curb of unemployment instead of facilitate an
industrial upgrade, the Singapore government enforced a temporary ban on the influx of foreign
workers for all industries excluding construction, shipbuilding, and domestic helpers until 1986.
However, the government soon made a radical change in the opposite direction and the overall
immigration policy reverted to remain liberal and open. According to the statistics from Singa-
pore’s Ministry of Manpower (Table 1), the country’s population of the employed in 2015 was
3.6562 million, 1.3873 million of which were foreign workers. Foreign workers in Singapore
constitute approximately 37.94% of the country’s overall population under employment.
Between 2010 and 2015, the number of foreign workers in Singapore grew from 1,113,200
to 1,387,300, translating into a growth rate of 24.62%. During the same period, the number
of foreign domestic workers in Singapore also grew by 14.95% (from 201,400 to 231,500).
Singapore has adopted different standards for foreign labor import and management. For
skilled and professional talents, the government issues work permits based on educational back-
ground, qualifications, and wages. For unskilled or semi-skilled workers, prospective employers
are required to submit applications and pay a monthly worker levy and observe the company’s
dependency ceiling. The worker levy is determined based on a variety of factors, including the
level of the workers’ skills, the industry, the company’s ratio of foreign workers, and the overall
economic situation. The worker levy usually falls between 250 and 950 SGD per month per
worker, while the levy for foreign domestic workers generally comes between 60 and 265
TABLE 1
Number of Foreign Workers in Singapore —2010 to 2015
2010 2011 2012 2013 2014 2015
Employment pass (EP) 143,300 175,400 173,800 175,100 178,900 187,900
S Pass 98,700 113,900 142,400 160,900 170,100 178,600
Work permit (Total) 865,200 901,000 942,800 974,400 991,300 997,100
Foreign domestic workers 201,400 206,300 209,600 214,500 222,500 231,500
construction 248,000 264,400 293,300 318,900 322,700 326,000
Other work Permits 6,000 7,600 9,300 11,300 15,400 23,600
Foreign workforce (Total) 1,113,200 1,197,900 1,268,300 1,321,600 1,355,700 1,387,300
Notes:Unit: Person.
Other work permits include Letter of Consent (LOC) and Training Work Permit (TWP). The Training Employment
Pass (TEP) was officially categorized under other work permits starting from March 2014.
Source: Official website of Singapore’s Ministry of Manpower at http://www.mom.gov.sg/statistics-publications/
others/statistics/Pages/ForeignWorkforceNumbers.aspx.
SUGGESTION: FOREIGN DOMESTIC WORKER 157
SGD per month.
1
In addition, the dependency ratio ceilings for foreign workers also varies for
different businesses and industries and may not exceed 87.5%. Companies with higher depen-
dency ratios find themselves paying higher levies for each foreign worker that they hire. This
summarizes Singapore’s two-pronged approach of adjusting the demand for foreign workers
with cost and quantity.
2
The principal statutes regulating employment in Singapore are contained in the Employment
Act. Basic terms and conditions of employers-employees relations in Singapore are covered by
law in the Employment Act. The Employment Act (Cap 91) was first passed in 1968 and was
recently amended effective April 1, 2014. On the other hand, employment of all foreigners in
Singapore is regulated by the Employment of Foreign Manpower Act (EFMA), which was
passed by Parliament on May 22, 2007 and assented to by the president on June 1, 2007.
The EFMA was amended in November 2012. Moreover, some Singapore employment laws also
apply to foreigners regardless of the contract clauses.
While the Singaporean Government has not promulgated any comprehensive regulations on
wages of foreign domestic workers, in an effort to safeguard the rights of domestic helpers
while accommodating the needs of their prospective employers, the government introduced
fixed contracts that clearly define the rights and obligations of domestic helpers, employers,
and agents back in September 2006. According to Singapore’s regulations, only females
between 23–50 of age are eligible to work as foreign domestic workers in Singapore, from
approved source countries including Bangladesh, Hong Kong, India, Indonesia, Macau,
Malaysia, Myanmar, Philippines, Korea, Sri Lanka, Taiwan, and Thailand. In addition, they
must also have received a minimum of eight years of formal education with a recognized cer-
tificate.
3
To hire a foreign domestic worker in Singapore, the employer must be 21 years of age
or older and not be an undischarged bankrupt. In order to hire a second foreign domestic
worker, the applicant must either have two or more children below the age of 18 or a parent
or parent-in-law over 60 years living in the household.
In general, Singapore relies on a market system for employment of foreign workers and
formulation of their wages. Minimum wages are determined through specific negotiations with
approved source countries and their respective wage structures. Foreign domestic workers from
the Philippines receive a higher minimum wage compared to those from other countries due to
their higher competence in the English language. For employment of foreign domestic workers
in social welfare, Singapore enforces relatively simple regulations: as long as the prospective
employer has a child below the age of 12 in the family or there is a family member above
the age of 65 in the household, the person or family is eligible to hire a foreign domestic helper
regardless of the said family member’s physical condition. Not only that, the Barthel index
assessment is also not necessary for the said family member.
In order to regulate the number of foreign domestic helpers in Singapore with a price system,
the Singaporean Government stipulates that employers of foreign domestic workers are required
to pay a monthly levy rate of 265 SGD, which is equivalent to a daily levy of 8.72 SGD
(Table 2). However, if employers have children (including children or grandchildren) under
the age of 16, seniors (including the employers themselves, their spouses, their parents, par-
ents-in-law, and grandparents, etc.) over the age of 65 or a family member with a disability,
they may have their monthly and daily levies reduced to 60 SGD and 1.98 SGD, respectively.
4
In addition, employers are also required to buy medical insurance with coverage of at least US$
15,000 for in-patient care and day surgery for their foreign domestic helper per year and insure
158 C.-H. WANG ET AL.
them for a minimum coverage of US$40,000 for personal injury. If we were to take the monthly
wage of 953 SGD for “sweepers and related workers” as the basic wage baseline for sweepers
and related workers (as published in the Occupational Wage Table for 2013 released by
Singapore’s Ministry of Manpower) for foreign domestic workers in Singapore, a rough
estimation of the monthly cost for Singaporean employers hiring a foreign domestic worker
would be between 1,013–1,218 SGD. According to the historical exchange rate data released
by the Board of Governors of the Federal Reserve System in May 2015 (with 1 USD ¼1.3525
SGD), the amount would be equivalent to approximately US$ 749—901, with a labor tax in the
range of US$ 44.38—195.94. Lastly, employers are also under obligation to provide free food/
lodging or allowances for food/lodging.
5
As the population ages in Singapore, demand for services such as health care and home-
based care will increase in tandem. In November 2012, the National Population and Talent
Division had released an occasional article; the article points out that in order to project a
demand for 91,000 health care workers in 2030, 28,000 are projected to be foreign health care
workers (19,000 professionals and 9,000 support care workers), compared to 13,000 foreign
health care workers out of a total of 50,000 in 2011. The number of foreign domestic workers
is projected to increase to 300,000 by 2030.
6
Foreign domestic workers will continue to play a
role in supporting families with elderly and children in Singapore. The government of
Singapore also needed to respect the rights of and responsibilities toward foreign domestic
workers.
FOREIGN DOMESTIC WORKERS EMPLOYMENT POLICY AND WORKING
CONDITIONS IN HONG KONG
In 1969, the government of Hong Kong opened the door to foreign domestic workers in order to
address the shortage of local domestic helpers. However, only residents of foreign nationality in
Hong Kong were eligible to apply to hire foreign domestic workers. It was not until 1972 that
the general population of Hong Kong was able to employ foreign domestic workers. The
government of Hong Kong made it compulsory for employers of foreign domestic workers
to enter into fixed labor contracts with clear definitions of working conditions such as wages,
work hours, and leave for both parties. In addition to enjoying all the basic rights as prescribed
TABLE 2
Monthly and Daily Levy Rate for Foreign Domestic Workers in Singapore
Levy
Levy per foreign worker
Per month Per day
Foreign domestic helper Normal 265 8.72
Concessionary 60 1.98
Post-partum Doula Singaporean employer 265 8.72
Non-Singaporean employer 120 3.95
Unit: SGD.
Note: The Singaporean government stipulates that only Malaysians can serve as doulas and must be between 23–65
years of age at the time of application.
SUGGESTION: FOREIGN DOMESTIC WORKER 159
by the applicable labor legislations, foreign domestic workers in Hong Kong are also entitled to
extra benefits through standardized contracts. In an effort to safeguard the rights of employers
and local workers, foreign domestic workers in Hong Kong are forbidden to moonlight or take
jobs they are not permitted to accept.
The Employment Agencies Administration (EAA) of the Labor Department is responsible
for regulating the operation of agents through licensing, regular and surprise inspections, com-
plaints investigation, and prosecution to ensure that they are operating in compliance with the
law. Foreign domestic workers and employment agencies are respectively regulated under the
Employment Ordinance (Chapter 57 of the Laws of Hong Kong) and the Employment Agency
Regulations (Chapter 57A). The Employment Ordinance is the main piece of legislation govern-
ing conditions of employment in Hong Kong. Since its enactment in 1968, the benefits provided
for under the Ordinance have been substantially improved. The Employment Ordinance applies
to all employees employed under an employment contract and their employers. This legislation
provides the fundamental protection to employees including payment of wages, restrictions on
wages deductions, provision of statutory holidays, and extra to all employees in Hong Kong.
Agents must be licensed, and can only accept fees of up to 10% of the FDW’s first month
of salary, though other “costs” are passed to some foreign domestic workers, sometimes
illegally. Employment is based on standard-form contracts and is subject to a number of
minimum terms and conditions. Foreign domestic workers are entitled to a rest day of 24 hours’
duration in every seven day period, statutory holidays, leave, adequate food or a food
allowance, the cost of travel to the place of origin upon termination of the contract, and limits
on the deductions that can lawfully be made from a salary.
7
In addition, the statutory minimum
wage does not apply to foreign domestic workers in Hong Kong.
8
In consideration for Hong Kong’s overall economic and employment situation, the govern-
ment raised the minimum allowable wage (MAW) for foreign domestic workers by 100 HKD
(from 3,480 HKD to 3,580 HKD per month) effective July 10, 2008. On June 1, 2011, Septem-
ber 19, 2012 and September 30, 2013, the MAW for foreign domestic workers in Hong Kong
was raised by 160 HKD, 180 HKD and 90 HKD to 3,740 HKD, 3,920 HKD and 4,010 HKD,
respectively. On 1 October 2014, the MAW for foreign domestic workers was raised by 100
HKD (from 4,010 HKD to 4,110 HKD per month). Starting from October 1, 2015, the
MAW for foreign domestic workers was increased by 2.4% or to 4,210 HKD from 4,110
HKD per month (Table 3).
9
On top of that, employers are also required to provide free lodging
for their foreign domestic workers; if meals are not provided, employers must also offer no less
than 995 HKD as a food allowance per month. Upon termination or expiration of contract,
employers are under the obligation to cover the travel fees for their foreign domestic workers
to return to their respective countries.
On October 1, 2013, the Hong Kong Federation of Asian Domestic Workers Unions
(FADWU) protested against unsatisfactory adjustment of foreign domestic workers’ MAW
for that year (at 2.3%, which was not only significantly lower compared to the 4.8%margin
in 2012 but also fell below the 4.3% inflation rate in the same year). Prior to the adjustment
of foreign domestic workers’ MAW on May 1, 2015, the FADWU emphasized that foreign
domestic workers were entitled to a reasonable wage level of 4,500 HKD and a monthly food
allowance of 1,600 HKD.
10
In addition, pursuant to the Employees’ Compensation Ordinance (Chapter 282 of the Laws
of Hong Kong), all employers are under the obligation to pay for compensation insurance for
160 C.-H. WANG ET AL.
occupational injuries to cover the legal liabilities prescribed by the Employee Compensation
Ordinance and the relevant common law in the event of occupational injuries sustained by
foreign domestic workers during their term of employment. In the event of sickness or injuries
during employment, employers are also required to provide free medical care as per the stan-
dardized employment contract. In other words, foreign domestic workers in Hong Kong enjoy
rights equal to local workers under the labor legislations in Hong Kong.
Effective October 1, 2003, employers of foreign domestic workers in Hong Kong were
required to pay an Employees Retraining Levy of 400 HKD per month to the Immigration
Department as stipulated by the Government of the Hong Kong Special Administrative Region
of the People’s Republic of China. The Employee Retraining Levy (also informally known as
the foreign domestic worker levy), which is collected over a period of two years (24 months), is
a special tax collected by the government of Hong Kong for the primary purpose of assisting
local workers who have to seek reemployment due to changes in Hong Kong’s economic
environment. As such, regulations for the Employee Retraining Levy were officially abolished
effective August 1, 2013.
11
According to the historical exchange rate data released by the Board
of Governors of the Federal Reserve System in May 2015 (with 1 USD ¼7.7505 HKD), the
costs (including food allowance) of hiring a foreign domestic worker for Hong Kong employers
would come to a total of approximately 654.71 USD.
12
FOREIGN DOMESTIC WORKERS EMPLOYMENT POLICY AND WORKING
CONDITIONS IN TAIWAN
Foreign domestic workers in Taiwan are categorized under workers in social welfare, and have
thus been referred to as foreign workers under social welfare. When categorized by job
descriptions, they can be further separated into “domestic helper” and “institutional/domestic
caretaker.” According to Item 9 under Article 46, Chapter V of the Employment Service Act
in Taiwan, foreign workers in the field of social welfare may only be employed to engage in
TABLE 3
Adjustments of Foreign Domestic Workers’ Minimum Wage Over the Years in Hong Kong—2005 to 2015
Time
Minimum monthly wage Monthly food allowance
Amount (HKD) Growth margin (%) Amount (HKD) Growth margin (%)
May 19, 2005 3,320 1.53 300 0.00
May 31, 2006 3,400 2.41 300 0.00
June 6, 2007 3,480 2.35 300 0.00
July 10, 2008 3,580 2.87 300 0.00
September 2, 2009 3,580 0.00 740 146.67
August 26, 2010 3,580 0.00 750 1.35
June 1, 2011 3,740 4.47 775 3.33
October 1, 2012 3,920 4.10 875 12.90
October 1, 2013 4,010 2.30 920 5.14
Oct 1, 2014 4,110 2.49 964 4.75
Oct 1, 2015 4,210 2.43 995 3.22
Source: Compiled by the author for the study.
SUGGESTION: FOREIGN DOMESTIC WORKER 161
“household assistant and nursing work.” More specifically, duties for “household assistant”
include performing cleaning duties, preparing food, taking care of the daily lives of the employer’s
family members, other household chores, and other related work in a private home, whereas the job
of “caretaker” encompasses caretaker duties at institutions or normal household families. Insti-
tutional caretakers refer to those responsible for taking care of the daily lives of patients and/or
those with physical/mental disabilities who have been placed at specific institutions or hospitals.
The duties of a family caretaker would be identical to that of an institutional caretaker, with the
sole difference being the venue of the job (being private households).
In order to ensure that the rights and interests of foreign workers are protected, the Ministry
of Labor has stipulated in the Regulations on the Permission and Administration of the
Employment of Foreign Workers (hereinafter referred to as the RPAEFW) enacted pursuant
to the Employment Services Act that the employer and the foreign worker must sign an affidavit
of wages. Before a foreign worker enters Taiwan, the employer, the worker, the domestic
employment agency, and the foreign employment agency have to sign an affidavit regarding
the expenses incurred for the worker to enter Taiwan to work and his/her wages. The affidavit
must carry information with regard to the wages of the worker in Taiwan and the expenses
accrued before entering Taiwan and verification by the competent authority in the source
country is required. Also, the employer must sign a labor contract with the foreign worker.
Meanwhile, Article 43 of the RPAEFW stipulates that an employer has to pay the wages to
the foreign worker directly and no part of the contents of the contract may be altered to the
disadvantage of the worker.
In recent years, following the increase in the level of education and income for the general
population, dual-income families have become the norm. Coupled with the advancement in
medical care and the extended average lifespan of citizens, Taiwan is fast becoming an aging
society. In order to develop and promote growth of the female labor force while addressing the
people’s demand for childcare, senior care, care for the physically/mentally disabled, and care
for patients with major illnesses, the Taiwanese Government officially approved the import of
foreign domestic caretakers in April 1992. Within a matter of months, in August of the same
year the government also lifted restrictions on the import of foreign domestic helpers and
foreign institutional caregivers as a response to the shortage of domestic helpers.
Table 4 illustrates the changes in the number of foreign workers under social welfare in
Taiwan over the years. From 2000 to 2015, the total number of foreign workers in social welfare
grew from 106,331 to 224,356, a growth of 110.9%. Between the two categories, foreign care-
takers grew at the fastest rate––reaching 222,328 from 98,508 with a growth rate of 125.7%. In
contrast, the number of foreign domestic helpers fell sharply from 7,823 to 2,028, equivalent to
a 74.1%decline.
In 1992, Taiwan began the import of foreign domestic workers in social welfare. The
government allowed hiring of foreign domestic helpers on three specific occasions and is
known to have taken a very conservative stance on the import of foreign domestic helpers.
In addition to limiting the number of foreign domestic helpers in Taiwan, the government
has also adopted stricter standards for review of applicants and their families’ eligibility. For
domestic helpers, applicants are required to meet the following criteria: (1) Both husband
and wife are employed and have children under the age of 12, living in the same household;
(2) the applicant has a lineal ascendant over the age of 70 and is living in the same household
as the applicant; (3) the applicant is over the age of 70 and has no descendant in Taiwan or a
162 C.-H. WANG ET AL.
caretaker; or (4) the applicant has parent(s)-in-law over the age of 70 who is/are living in the
same household as the applicant. However, if the applicant’s parent(s)-in-law has/have children
in Taiwan, the applicant would not be eligible.
13
By the end of December 2015, there were 587,940 legally employed blue-collar foreign
workers in Taiwan and among them the percentage of foreign domestic workers is 38.15%,
working in the sector of social welfare. They have been diligently offering their services at their
respective organizations, households, and care facilities and these occupations happen to be the
industries and sectors in Taiwan that face a dire shortage of manpower. According to the Popu-
lation Projection Report for Taiwan: 2012 to 2060 published by the Council for Economic
Planning and Development, the population of seniors above the age of 65 in 2060 is expected
to grow significantly, by as much as 2.9 times that in 2012. The percentage of the senior
population will also increase dramatically from 11.2% of the total population in 2012 to
39.4%in 2060. Not only that, the population of seniors above the age of 80 is also expected
to rise significantly from 25.4%in 2012 to 41.4%by 2060.
In contrast, the population of women between the child-bearing age of 15-49 is also
projected to decline from 6.217 million in 2012 to 2.979 million in 2060 (a sharp decline of
52.1%). During the same period, the percentage of the population of women of childbearing
age out of the total population is also expected to fall from 53.4% in 2012 to 30.4% by
2060. In addition, the aging index for Taiwan in 2012 came to 76.3%(i.e., with the ratio of
old age population to young age population at approximately 1:1.3). By 2016, the old age popu-
lation in Taiwan is set to exceed the young age population, with the aging index going above
100%. At this rate, the aging index of Taiwan could reach as high as 401.5%in 2060, with the
old age population being roughly four times as much as the young age population.
14
In addition,
the labor market of foreign workers in Taiwan has witnessed the phenomenon of “feminization
TABLE 4
Number of Foreign Workers Under Social Welfare in Taiwan—2000 to 2015
Year Caretaker Domestic helper
Foreign workers in
social welfare
2000 98,508 7,823 106,331
2001 103,780 9,154 112,934
2002 113,755 6,956 120,711
2003 115,724 4,874 120,598
2004 128,223 2,844 131,067
2005 141,752 2,263 144,015
2006 151,391 2,394 153,785
2007 159,702 2,526 162,228
2008 165,898 2,529 168,427
2009 172,647 2,296 174,943
2010 183,826 2,282 186,108
2011 195,726 2,128 197,854
2012 200,530 2,164 202,694
2013 208,081 2,134 210,215
2014 217,858 2,153 220,011
2015 222,328 2,028 224,356
Note: Unit: Person. Note: Unit: Person.
SUGGESTION: FOREIGN DOMESTIC WORKER 163
of migration” for domestic workers, whereby a population of female immigrants from southeast
Asia (also known as guest workers), have taken up the job of caring for and doing household
chores for as many as 140,000 seniors, children, people with disabilities, and major illnesses in
Taiwan.
At present, working conditions such as wages and work hours for foreign domestic workers
in Taiwan are negotiated and finalized in the labor contract between the foreign domestic
worker and the employer prior to the foreign domestic worker’s arrival in Taiwan. Pursuant
to Item 3 of Article 46 of the Employment Service Act, employers hiring foreign domestic work-
ers are required to pay, in addition wages, 70%of monthly insurance fees and an employment
security fee to the government. Institutional, household, and outreach service employers of
foreign caregivers
15
are required to pay a monthly employment security fee of NT$ 2,000.
16
Native Taiwanese applying to hire foreign domestic helper have to pay an employment security
fee of NT$ 5,000 per month; for foreigners in Taiwan applying for a foreign domestic helper,
the fee is NT$ 10,000 per month. Foreign domestic workers providing household help or
caregiving duties as required by their labor contracts are entitled to a monthly wage of NT$
17,000. In addition, they may also receive overtime pay of NT$ 528 per day on holidays.
Presently, the Labor Standards Act of Taiwan does not apply to foreign domestic workers in
Taiwan and as a result,
17
their wages have been disconnected from the standard minimum wage.
On August 28, 2015, the Ministry of Labor and officials from Thailand, Vietnam, the Philip-
pines, and Indonesia reached a consensus on a 7%increase from the current wage level, which
had been frozen for 18 years. The foreign domestic workers hired in Taiwan after September 1,
2016 have to be paid NT$17,000 per month. According to the historical exchange rate data
released by the Board of Governors of the Federal Reserve System in May 2015 (with 1
USD ¼30.42 TWD), the costs (excluding food allowance) of hiring a foreign domestic worker
for Taiwan employers would come to a total of approximately 558.84 USD. In addition, wages
of those who are already working in Taiwan as domestic workers are subject to renegotiation
between employers and employees (still remaining at NT$ 15,840, the amount would be equiva-
lent to approximately US$ 520.71). Although the wage is generally lower compared to foreign
workers in other industries, industrial foreign workers can get physical payments for food and
lodging (with an approximate monetary value of NT$ 2,500–NT$ 3,500, the amount would be
equivalent to approximately US$ 82.18–US$ 115.06). On the other hand, the approved source
nations of foreign domestic workers have negotiated the terms of fixed contracts that require
employers to offer free food and lodging. As such, the difference between wages of domestic
and industrial foreign workers is actually not significant.
A comparison between work conditions for local domestic workers of Taiwan and foreign
domestic workers shows that the conditions for local domestic workers are superior compared
to foreign domestic workers. Table 5 shows that local domestic workers of Taiwan enjoy clearly
defined job descriptions (with clearly defined boundaries for helper, caregiver, and babysitter),
higher daily wage (NT$ 1,200–NT$ 2,500, the amount would be equivalent to approximately
US$ 39.45–US$ 82.18), normal leave (with specific off-work hours), freedom in terms of lodg-
ing and shifting to other employers. In contrast, foreign domestic workers have been subjected
to vaguely defined job descriptions (resulting in being fully susceptible to their employers’
instructions to perform duties for helper, caregiver, babysitter and even business employee),
lower daily wage (NT$ 528, the amount would be equivalent to approximately US$ 17.36),
abnormal work hours and leave schedules (with no clearly-defined off-work hours), having
164 C.-H. WANG ET AL.
no alternative but to stay at the employers’ homes (and thus being subject to 24-hour
supervision), and no freedom to move to other employers.
A COMPARISON OF FOREIGN DOMESTIC WORKERS EMPLOYMENT COSTS,
WORKING CONDITIONS, AND MINIMUM WAGE IN SINGAPORE, HONG KONG,
AND TAIWAN
Foreign Domestic Workers Employment Costs and Working Conditions
Table 6 shows that with factors including minimum wage for foreign domestic workers,
employment security fee (or worker levy), and food allowance taken into consideration, the cost
of hiring a foreign domestic worker for a Taiwanese employer comes to 22,000 TWD (723.20
USD) plus a food allowance; the total cost of hiring a foreign domestic worker with a food
allowance already included for a Hong Kong employer comes to 5,205 HKD (671.57 USD);
and the total cost of hiring a foreign domestic worker for a Singaporean employer is 1,013
SGD—1,218 SGD (748.98 USD—900.55 USD) plus free food or a food allowance. In any
case, all three employers have to provide free lodging. Further comparison of the minimum
wage for foreign domestic workers in Singapore, Hong Kong, and Taiwan to their respective
manufacturing industries reveals the ratios of 22.64%, 39.36%, and 48.67%, respectively.
Coupled with costs such as employment security fees or worker levy, the total costs for employ-
ers compared with the standard wage of manufacturing industries comes to 46.10%, 31.08%,
and 24.06%—28.93%, respectively. These figures show that the costs of foreign domestic
workers employment are in fact significantly higher for Taiwanese employers when compared
to Hong Kong and Singapore.
TABLE 5
Comparison of Working Conditions Between Local and Foreign Domestic Workers in Taiwan
Conditions
Local domestic workers (Domestic
helper, caregiver, babysitter)
Foreign domestic workers (Domestic
helper and caregiver)
Wage High (Daily wage between NT$
1,200–,500).
Low (Daily wage of NT$ 528).
Leave Normal (With clearly defined off-
work hours).
Abnormal, with the possibility of
having no leaves throughout an
entire year.
Job Description Clearly defined (i.e.,, Employers are
less likely to ask them to perform
additional work).
Not clearly defined (i.e.,, frequently
being asked to serve as helpers,
caregivers and even employees).
Lodging Not required to live with their
employers.
Required to live with their employers
and therefore can be potentially
asked to work or standby for work
round the clock.
Transfer of employer Has the freedom to move to another
employer with greater degree of
autonomy.
May not move to another employer
except for legal reasons or with the
permission of the employer.
Source: Ministry of Labor, Taiwan (R.O.C.).
SUGGESTION: FOREIGN DOMESTIC WORKER 165
TABLE 6
A Comparison of Foreign Domestic Workers Employment Costs and Working Conditions Between Singapore, Hong Kong, and Taiwan
Country(Region) Singapore Hong Kong Taiwan
Minimum wagefor foreign domestic
workers
953 SGD (704.62 USD) 4,210 HKD (543.19 USD) 17,000 TWD (558.84 USD)
Employment security fee (or worker levy) 60 SGD to 265 SGD Original levy of 400 HKD, which was
officially abolished on May 1, 2015.
5,000 TWD
Food allowance Employers are expected to
provide food and lodging,
though the allowance is not
clearly stipulated by law
995 HKD (128.38 USD) (the employer is
also required to provide lodging)
Employers are expected to provide
food and lodging, though the allowance
is not clearly stipulated by law
Total 1,013 SGD to 1,218 SGD
þfood allowance (the
employer is also required to
provide lodging)
5,205 HKD (food allowance included) (the
employer is also required to provide
lodging)
22,000 TWD þfood allowance
(the employer is also required to provide
lodging)
Wage for the manufacturing industry 4,210 SGD (3,112.75 USD) 13,224 HKD (1,706.21 USD) 45,207 TWD (1,486.09 USD)
Ratio of minimum wage for foreign
domestic workers compared to the
wage of the manufacturing industry
22.64% 39.36% 48.67%
Ratio of total employment costs covered
by the employer against the wage for the
domestic manufacturing industry
(excluding food and lodging allowance
and fees)
24.06%to 28.93% 31.08% 46.10%
Notes: 1. Presently, the Labor Standards Act in Taiwan is not applicable to foreign domestic workers in Taiwan. As such, their wages are disconnected from the basic
wage standard. As it is, the minimum wage for foreign domestic workers in Taiwan is NT$ 17,000. The minimum wage for foreign domestic workers in Hong Kong is
determined by the MAW while the minimum wage for foreign domestic workers in Singapore is 953 SGD as defined for “sweepers and related workers” under the
category of “sweepers and related workers” in the latest Occupational Wages Table for 2013.
2. Exchange rates used in the tables were taken from the historical exchange rate data are released by the Board of Governors of Federal Reserve System in May
2015 (SG$ 1.3525/1 USD, HK$ 7.7505/1 USD, and NT$ 30.42/1 USD).
3. Wages for manufacturing industries of Taiwan and Hong Kong were taken from statistics for the year 2014; wages for manufacturing industries of Singapore were
taken from the statistics for the month of June 2014.
Sources: Wage data for manufacturing industries of Taiwan have been taken from Employees’ Earning Survey published by the Directorate-General of Budget,
Accounting and Statistics; wage data for manufacturing industries of Hong Kong have been taken from Quarterly Report of Wage and Payroll Statistics published by the
Census and Statistics Department of the Government of Hong Kong; wage data for manufacturing industries of Singapore have been taken from Report: Labor Force in
Singapore published by the Ministry of Manpower in Singapore.
166
Though the conditions for employment of foreign domestic workers in Taiwan and Hong
Kong (where minimum wage regulations do not apply to foreign domestic workers) are fairly
similar, with factors such as minimum wage, employment security fees (or worker levy), and
food allowance taken into consideration, the cost of hiring foreign domestic workers in Taiwan
is higher than in Hong Kong. The reason that Hong Kong employers have lower total costs than
Taiwan employers could be specific structural factors. Due to the physical proximity between
Hong Kong and China, a significant population of illegal foreign domestic workers from China
and other countries have been present in Hong Kong. Due to the excessive supply, employers in
Hong Kong have more alternatives to choose from and once foreign domestic workers were
formally introduced to Hong Kong, the government of Hong Kong had set a relatively lower
minimum allowable wage (MAW). Despite the upward adjustment of MAW starting from
May 19, 2005, the increase had taken place at a gradual pace thereby leading to a lower total
cost in Hong Kong.
Minimum Wage
In order to ensure that laborers earn enough to cover their basic living expenses, the Taiwanese
government promulgated the Temporary Minimum Wage Procedure in 1968 and set the dom-
estic minimum wage at NT$600 per month. On April 29, 1980, the minimum wage in Taiwan
was increased to NT$3,300 per month. Since then the domestic minimum wage has been
upwardly adjusted on an annual or biannual basis to keep up with the rapid growth in the
economy. By 1997, minimum wage in Taiwan had reached NT$15,840 per month and it stayed
at that figure in the following decade, that is, until 2007, when the government increased the
minimum wage to NT$17,280 per month (effective July 1, 2007). The hike translated into an
increase of NT$1,440 (roughly equivalent to 9%). On September 29, 2010 (effective from
January 1, 2011), the government raised the minimum wage to NT$17,880 per month or NT
$98 per hour. On the 1st of January 2012, the minimum wage was raised to NT$18,780 per
month and NT$103 per hour. On January 1, 2013, the minimum hourly wage increased to
NT$109, and on the 1st of April, the minimum monthly wage was raised to NT$19,047. On
the 1st of January, 2014, the hourly wage was slightly improved to NT$115, and on the 1st
of July, the minimum wage was raised to NT$19,273. A further adjustment, announced on
August 29, 2014, starting from July 1, 2015, the monthly wage will increase to NT$20,008
per month, and the hourly pay will increase to NT$120 per hour.
Hong Kong had some legislation relating to the minimum wage as early as 1932; the
governor was granted the right, but was not obliged, to establish a minimum wage. The Legis-
lative Council of Hong Kong passed the Minimum Wage Bill in 2010, requiring the chief
executive to propose a minimum wage. Through a Provisional Minimum Wage Commission
appointed by the government, a HK$28 hourly wage floor was introduced and eventually
accepted by the Legislative. Statutory Minimum Wage (SMW) and has come into force since
May 1, 2011. Effective May 1, 2015, the SMW rate was raised from $30 per hour to $32.5 per
hour. Concurrently, the monetary cap on the requirement of employers keeping records of the
total number of hours worked by employees was also revised to $13,300 per month.
Singapore currently does not have any set minimum wage for all local or foreign workers.
Whether wages should increase or decrease is best determined by market demand and supply
SUGGESTION: FOREIGN DOMESTIC WORKER 167
for labor, skills, capabilities, and competency to perform the task. However, two exceptions
were made recently: (i) Cleaner jobs are to have a minimum wage of SG$1,000 per month
effective January 2014; and (ii) Security guards are to have a minimum wage of SG$1,100
per month effective September 2016.
SHOULD MINIMUM WAGES APPLY TO FOREIGN DOMESTIC WORKERS?
Foreign domestic workers provide care-giving support for families with elderly and children in
Hong Kong and Taiwan. Having foreign domestic workers to assist with care-giving duties
allows people, especially women, to enter or remain in the workforce. Foreign domestic work-
ers can play a complementary role to the long-term care sector by helping to provide caregiving
services for the elderly in the familiar environment of their own home with their family and
friends. However, domestic workers are employed by individuals to tend the sick or the elderly,
take care of the family members, and do housework, due to the unclear distinction of work
hours and rest time, it is difficult to apply a minimum wage to such workers. This causes
decoupling foreign domestic workers’ wages from the minimum wage. This section provides
different analyses of the feasibility of applying minimum wage to foreign domestic workers
from social welfare, economic, and legal perspectives.
Social Welfare Analysis
From a social welfare standpoint, the introduction of foreign domestic workers has made labor
relationships in Hong Kong and Taiwan more sophisticated. Due to the fact that foreign
domestic workers in Hong Kong and Taiwan are mostly hired in low-paying jobs with long
working hours, employers might attempt to take away local domestic workers’ bargaining chips
on the table by leveraging foreign domestic workers’ cheaper costs and higher degrees of
cooperation. This could easily lead to friction and hostility between foreign domestic workers
and local domestic workers as the latter would blame the former as the root cause of deterior-
ating working conditions and fewer employment opportunities. In addition, the belief that hiring
foreign domestic workers leads to fewer employment opportunities for local domestic workers
increases the tendency for local domestic workers to commit acts that violate the law or disrupt
public order.
Many countries have often restricted foreign workers basic rights in the hope of achieving
effective management. However, attempts to impose more restrictions often backfire with
negative results.
18
Therefore, decoupling of foreign domestic workers’ wages from the
minimum wage will lead to discrimination and unequal treatment. From the perspective of equal
and nondiscriminatory treatment, elimination of discrepancies between basic rights of foreign
workers and local workers should help reduce a number of social problems relating to foreign
domestic workers, thereby lowering the costs of managing the importation of foreign domestic
workers.
In terms of working conditions, there should not be any discriminatory treatment for foreign
domestic workers. Decoupling of foreign domestic workers’ wages from the minimum wage
would not only reflect the government’s lack of regard for basic human rights but also a lack
168 C.-H. WANG ET AL.
of respect for the spirit of national treatment. It is entirely possible that the decision would cause
labor exporting nations and relevant members of international trade organizations to protest or
impose trade boycott or sanctions.
19
Indonesia President Joko Widodo launched the zero-maid
policy at the beginning of May 2016. The Indonesian government is gradually reducing the
number of its domestic workers working abroad and is planning to launch more than 10 million
domestic job openings for these workers while providing technical training as well. By 2018, it
is anticipated that Indonesia would export mostly technical workers instead of laborers without
professional skills.
Moving toward an aging society has become a big issue in Hong Kong and Taiwan due to the
shortage of human resources caring for the elderly. Aging society relies highly on foreign
domestic workers, especially from Indonesia. However, Indonesian officials are planning to
restrict their citizens from working as laborers without professional skills overseas and may
pose a threat to the long-term care system in Hong Kong and Taiwan. This is something
government must consider—the minimum wage should cover foreign domestic workers.
Nowadays, the long-term care system is an important issue and a key part of the social safety
net. The government has the responsibility and obligation to focus on long-term care and
domestic workers to care for the elderly. However, the government disregards the challenge
and forgoes overall planning of a long-term care policy; this avoidance leads to low-income
families only being able to hire foreign domestic workers. Compared to Taiwan’s domestic
workers, foreign domestic workers can be paid low wages and made to work overtime. Hong
Kong’s government does not include foreign domestic workers within its Employment
Ordinances; subsequently, they lack the protection of the law with regard to exploitation. In
Singapore, foreign domestic workers are paid different wages according to their different coun-
tries. The foreign domestic workers will play an important role in supplementing the shortage of
manpower of domestic workers. To take care of the elderly and expand in-home and
community-based care capacity, it is necessary to support caregivers and help them balance
their caregiving and work obligations.
Economic Analysis
According to Ministry of the Interior statistics, through the end of 2014, 2.81 million of
Taiwan’s residents were age 65 and over, 12%of the total population. Unless the nation’s birth
rate sharply increases, senior citizens’ share of the population will reach 14%in 2018—making
Taiwan an aged society—and 20%in 2025—making it a super-aged society. Taiwan is aging at
the third-fastest rate in the world, equal to Japan and slower only than Singapore and South
Korea.
20
In Hong Kong, according to Census and Statistics Department statistics, population
aging is expected to continue. Excluding foreign domestic helpers, the proportion of elderly
persons aged 65 and over is projected to rise markedly, from 15%in 2014 to 36% in 2064.
Population aging is expected to be most rapid in the coming 20 years with the proportion of
over age 65 reaching 23%in 2024 and 30%in 2034.
21
The growth of the elderly population has increased the demand for long-term care. The intro-
duction of foreign domestic workers was primarily driven by shortage of local domestic work-
ers (especially for caretakers). Decoupling foreign domestic workers’ wages from the minimum
wage may lead to wage discrimination and employers may find it more difficult to hire quality
SUGGESTION: FOREIGN DOMESTIC WORKER 169
foreign domestic workers to replenish their human resources. Not only that, the odds of laborers
skipping work or labor disputes erupting would probably be higher, thus resulting in a negative
impact on the morale of foreign workers.
22
On a related note, a labor market with imperfect competition (especially for domestic
workers) is more susceptible to problems of worker exploitation by employers. A minimum
wage system actually facilitates employment and efficiency. According to the efficiency wage
theory (Shapiro & Stigliz, 1984), the wage level is closely correlated to the level of workers’
productivity. Higher wage levels lower the likelihood of workers shirking responsibilities as
they motivate workers to put in their best efforts. This in turn boosts productivity and causes
labor costs to fall instead of increasing. Besides, low wages for foreign workers can lead to an
artificial demand for labor that may mislead one into thinking that the country is always short
of labor. This may slow down the process of industrial upgrading; decoupling foreign work-
ers’ wages from the minimum wage can only further aggravate the so-called labor shortage
problem.
From the perspective of hiring foreign workers, application of existing minimum wage to
foreign workers would attract more quality foreign workers to be a part of the domestic labor
market. Not only that, it would also help enhance foreign workers’ efficiency, thereby lowering
the costs of hiring foreign workers. On the other hand, if foreign workers are excluded from the
protection of the minimum wage system, it would lower foreign workers’ efficiency at work or
lower the quality of foreign workers available in the labor market. Consequently, it will drive up
the costs of foreign workers employment, rather than lowering it.
23
Furthermore, decoupling foreign domestic workers’ wages from minimum wage might also
lead to negative impact on local domestic caretakers in Hong Kong and Taiwan because foreign
domestic workers would become cheap replacements for local domestic caretakers, encouraging
employers to exploit their workers even more; this would suppress the wage level for local
domestic caretakers.
Legal Analysis
The International Labor Organization (ILO) now works actively to safeguard the basic rights
of foreign workers around the world, and points out contributions of foreign workers to econ-
omies of nations suffering labor shortage when insisting upon protection of their fundamen-
tal human rights. Numerous international conventions and proposals stipulate comprehensive
protection for foreign workers. Pursuant to ILO Conventions 97, 111, 143, 157, 167, 168,
and 169 (ILO 2006a-g) and WTO regulations stipulating specific obligations on its members
(WTO 2011), no discrimination of any form (including wage discrimination) against foreign
workers is permitted. ILO Convention No. 111 on the elimination of discrimination and pro-
posals on supplementary regulations that forbid discrimination against foreign workers
further demonstrate the ongoing efforts around the world to safeguard the rights of foreign
workers. Apart from entitling foreign workers to national treatment, the ILO has also been
passively forbidding nations from engaging in any discriminatory acts against foreign
workers.
Besides, any violation of international covenants can also draw the attention of international
human rights organizations. From the perspective of “international regulation,” the government
170 C.-H. WANG ET AL.
needs to follow the international trend of safeguarding foreign domestic workers’ rights. In
order to elevate the nation’s human rights policies to international standards and immediately
start work to ratify and implement two UN covenants—the International Covenant on Civil
and Political Rights (ICCPR) and the International Covenant on Economic, Social and Cultural
Rights (ICESCR). According to the two United Nations human rights covenants, minimum
wage should cover foreign domestic workers. From the legal perspective, foreign domestic
workers’ wages should not be decoupled from the minimum wage, and foreign domestic
workers should not be treated as a separate group of workers in the minimum wage policy.
CONCLUSION
Long-term care for disabled older adults has become an urgent policy issue in many developed
countries and increasingly in developing countries due to their rapidly aging populations with
growing chronic disease burdens. Even as center-based care facilities are expanded to provide
care for the elderly and children, foreign domestic workers play a role in supporting families
with elderly and children. Foreign domestic workers’ activities provide important market and
nonmarket services in Singapore, Hong Kong, and Taiwan, as these activities have an impact
on the labor force participation and time allocation decisions of household members. With
regard to protection of labor rights, compared to industrial foreign workers, domestic foreign
workers have been the disadvantaged minority. In recent years, with improvements in national
GDP and prevalence of higher education, dual-income families have become the norm. With the
dawn of aging societies, along with the demand from ordinary families to provide care for
children, seniors, those with physical/mental disabilities and patients of major illnesses, coun-
tries such as Singapore, Hong Kong, and Taiwan have witnessed a rapid increase in the number
of foreign domestic workers. This article offers a comparison and analysis of the foreign
domestic worker employment policies and working conditions among Singapore, Hong Kong,
and Taiwan.
Though Taiwan’s Labor Standards Act does not apply to foreign domestic workers at present
and their wages are disconnected from the standard minimum wage for other workers, com-
pared to neighboring countries (and regions), the total cost of hiring a foreign domestic worker
for Taiwanese employers is higher than for Hong Kong employers (with food allowance taken
into consideration). However, the cost is lower than what Singaporean employers have to pay
(with food allowance included). The Singapore government has not promulgated comprehen-
sive regulations governing wages of foreign domestic workers but in order to safeguard the
rights of foreign domestic workers while addressing household employers’ needs, the govern-
ment has implemented fixed contracts that clearly define the rights and obligations for domestic
helpers, employers, and agents. For Hong Kong and the regulations for foreign domestic work-
ers, in addition to enjoying the basic benefits offered by the labor legislation, foreign domestic
workers also get additional perks under the standardized contracts. To safeguard the rights of
employers and local workers, foreign domestic workers in Hong Kong are forbidden from
moonlighting or taking on jobs they have not been permitted to do. In Taiwan wages and work
hours are regulated through the establishment of labor contracts during negotiations before
arrival of foreign domestic workers. In order to take advantage of the domestic help or
caretaking services offered by foreign domestic workers, Taiwanese employers are required
SUGGESTION: FOREIGN DOMESTIC WORKER 171
to cover their foreign domestic workers’ wages, health insurance fees, and employment security
fees (collected by the government).
Moving toward an aging society has become big issue in many Asian countries due to the
shortage of human resources caring for the elderly. Many countries such as Singapore, Hong
Kong, and Taiwan have relied on Southeast Asian countries’ support in care workers for a
long time. However, foreign domestic workers in Asian countries lack access to regular forms
of migration and safe migration channels; also low wages; long working hours; exploitative
working conditions; nonrecognition of domestic work under labor laws and mistreatment in
domestic work conditions also occur. As the number of migrant workers increases annually,
so does the probability of workers experiencing such inhuman conditions and actions. To
improve this, the situation and policies for the migration industry and accountability of
employers should get a lot more attention. Accordingly, this article also investigates, from
social welfare, economic, and legal perspectives, the feasibility of applying minimum wage
to foreign domestic workers in Hong Kong and Taiwan. The results show that foreign dom-
estic workers’ wages should not be decoupled from the minimum wage. A special program to
incorporate foreign caregiver application into the domestic care system has been launched,
while promising to continue to review and update the policies in order to support the long-
term care system. Foreign domestic workers will continue to play a role in supporting the
long-term care system in Asian countries.
There is a shortage of workers, as the nations are trying to develop long-term care systems
while facing the rapidly aging population, making foreign domestic workers from Southeast
Asian nations an essential pillar of the domestic care system. The future development of
long-term care systems should incorporate the Southeast Asian domestic worker labor pool,
which could provide the additional personnel necessary for the nations’ long-term care. They
should be given professional and progressive training in long-term care skills. But the policy
and legislation amendment tends to emphasize more on the domestic worker market demand.
Concerning foreign domestic workers’ integration, quality of life, and enhancement of
social-cultural adjustment capability, this also needs a great deal of attention, thereby improving
the quality of long-term care.
NOTES
1. U.S. dollar to Singapore dollar exchange rate: 1.382 SGD/1 USD for May 20 2016.
2. With regard to employment of caretakers and foreign domestic workers, Singapore is significantly more
lenient in terms of hiring criteria. Industries in Singapore also enjoy a greater degree of freedom for employment of
foreign workers, except with restrictions on labor imports being limited to the 3D (dirty, dangerous, and difficult) indus-
tries. These are the main differences between Singapore and Taiwan in terms of labor import development, restrictions
on occupations, industries, and numbers.
3. For a comprehensive list of recognized certificates from the respective countries, refer to the official website
of Singapore’s Ministry of Manpower at http://www.mom.gov.sg/Documents/services-forms/passes/Educational-
Requirements-for-First-time-FDW.pdf.
4. The concessionary levy for foreign domestic worker has been reduced from 120 SGD to 60 SGD starting
from May 1, 2015, and the age requirement for children in the household for the concessionary levy has been raised
from 12 to 16.
5. For Singapore’s Occupational Wages Table for 2013, visit http://stats.mom.gov.sg/Pages/Occupational-
Wages-Tables-2013.aspx.
172 C.-H. WANG ET AL.
6. More details are available in the report “Projection of Foreign Manpower Demand for Healthcare Sector,
Construction Workers and Foreign Domestic Workers,” an Occasional Paper released by the National Population
and Talent Division, Prime Minister’s Office, November 2012.
7. Refer to Dickinson (2016).
8. Statutory Minimum Wage (SMW) has come into force since May 1, 2011. From May 1, 2015, the SMW rate
was raised from $30 per hour to $32.5 per hour. Concurrently, the monetary cap on the requirement of employers
keeping records of the total number of hours worked by employees was also revised to $13,300 per month.
9. Starting from 1973, the “Employment Ordinance” stipulated the MAW for foreign domestic workers in Hong
Kong. The MAW and the food allowance were set at 450 HKD and 100 HKD, respectively.
10. Refer to Petition to increase MAW for foreign domestic workers to 4,500 HKD in Apple Daily on August 15,
2014 at http://hk.apple.nextmedia.com/news/art/20140815/18832883.
11. By virtue of the Employees Retraining Ordinance (No. 2) Notice 2008, the obligation of all employers of
foreign workers to pay the levy had been suspended for five years, effective from August 1, 2008 through July 31,
2013. The period was known as the “levy suspension period.”
12. According to the data published by the Census and Statistics Department of the Government of Hong Kong,
per capita GDP of Singapore was 310,113 HKD in 2014 (approximately US$ 40,015), while the monthly wage for
workers in the manufacturing industry was 13,224 HKD (approximately US$ 1,706). In comparison, per capita GDP
of Taiwan in 2014 was NT$ 687,343 (approximately US$ 22,760), and the monthly wage for the domestic manufac-
turing workers was NT$ 45,207 (approximately US$ 1,497).
13. Starting from 2001, eligibility for hiring foreign domestic workers in Taiwan has been determined by a need-
based point system and applicants must score 16 points or higher in order to be eligible for application, which is
subjected to strict review.
14. Refer to the Population Projection Report for Taiwan: 2012 to 2060 (2013) published by the Council for
Economic Planning and Development at http://iknow.stpi.narl.org.tw/Post/Files/policy/2012/policy_12_037_2.pdf.
15. The model of foreign caregiver outreach care service involves the import of foreign caregivers by designated
institutions, which dispatches the said caregivers to their employers’ households to perform the required services.
16. If the care-receiver or the employer has been deemed as one from a low-income family as defined in the
Public Assistance Act, the employment security fee is reduced to NT$ 600 per month. If the care-receiver or the
employer is a recipient of either a living allowance for mid- or low-income elder (pursuant to Regulations on Living
Allowance for Mid or Low-income Senior Citizens) or has physical/mental disabilities, the required employment secur-
ity fee is NT$ 1,200 per month.
17. Although the Taiwanese government had attempted to cover domestic workers under the scope of the Labor
Standards Act on April 1, 1998, the implementation was fraught with difficulties in terms of fitness and consequently, the
Ministry of Labor excluded domestic workers from the scope of the Labor Standards Act effective from January 1, 1999.
18. For example, when a country restricts the duration of the working period for foreign workers, it results in
more foreign workers returning to their home countries; but limitations of foreign workers’ cultural rights usually
end up creating further social and public order issues.
19. The wage for foreign domestic workers in Taiwan has been disconnected from the normal basic wage since
1997 and has remained stagnant for 18 years without any adjustments. The Indonesian government has ever announced
that the country will end export of migrant workers by 2017 and will cease to send Indonesian women to other countries
to work as domestic helpers. In July 2015, the Indonesian government also demanded that the wage for Indonesian dom-
estic workers be raised from NT$ 15,840 to NT$ 17,500 and any applications with wages lower than the required
amount would be directly rejected by the Indonesian Economic and Trade Office to Taipei, thereby forcing the Ministry
of Labor to enter into an official negotiation with the Indonesian government regarding the wages of Indonesian
domestic workers in Taiwan.
20. Refer to the Department of Information Services, Executive Yuan at http://www.ey.gov.tw/en/cp.aspx?
n=F3F1F5E84471C81C.
21. Refer to the Census and Statistics Department at http://www.censtatd.gov.hk/home/index.jsp.
22. Becker (1971) pointed out that discrimination against laborers by employers results in ineffective workforce
utilization; García-Mínguez and Sánchez-Losada (2003) demonstrated in their analysis that it is possible to boost
economic growth by offsetting wage discrimination with transfer policy. Baldwin and Johnson (1992) showed that wage
discrimination leads to lower employment.
23. Refer to Hwang, Wang, and Chung (2011).
SUGGESTION: FOREIGN DOMESTIC WORKER 173
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174 C.-H. WANG ET AL.
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