JAKARTA - Singapore’s Ministry of Manpower (MOM) said employers cannot offset migrant workers’ overtime pay with fixed monthly allowances, according to a written parliamentary answer published on May 5.

The answer followed the High Court’s April 7 ruling in Gena Hulash Ram v Lim Joo Huat Enterprise Pte Ltd. Gena Hulash Ram, an Indian national, worked as a packer for Lim Joo Huat Enterprise from December 17, 2022, to August 25, 2023.

His In-Principle Approval letter listed a S$1,000 basic monthly salary, S$200 for housing, amenities and services, S$300 for “Others,” and an overtime rate of S$7.87 an hour. The employer treated the S$300 allowance as fixed overtime compensation, regardless of the number of extra hours worked.

Justice Philip Jeyaretnam rejected that argument. “An employer cannot introduce a cap on or fixed sum for overtime payment,” he wrote. The court then restored the worker’s overtime award to S$5,711.11 after the Employment Claims Tribunal had reduced it to S$3,254.84 by offsetting the allowance.

MOM told Parliament that migrant workers facing similar arrangements should inform the ministry. The ministry said it would engage the companies concerned and, where necessary, issue warnings or impose fines. It said complaints about fixed allowances being used to offset overtime pay have been small.

Workers with overtime shortfalls should file claims with the Tripartite Alliance for Dispute Management, MOM said. Migrant workers with valid salary claims can remain in Singapore to seek other employment while their claims are handled by TADM or the Employment Claims Tribunals. Those who return home can request remote mediation and adjudication, and workers may also approach the Migrant Workers’ Centre for legal assistance.

MOM gave a separate update on migrant domestic workers in another written answer published the same day. It said retention with the same employer for at least six months had stayed at about 64 percent over the past five years. Singapore had 316,900 migrant domestic workers as of December last year, according to MOM’s foreign workforce table, last updated on March 20.

MOM said early domestic worker contract cessations are typically linked to mismatched expectations over job scope and working conditions, as well as communication barriers. The ministry said it has no current plans for new regulatory measures on migrant domestic worker employment.