Resources For Employer

Domestic workers can face financial difficulties for many reasons. According to our research, 83% of Hong Kong’s migrant domestic workers are in debt. Often, the debt cycle starts with recruitment. For newcomers, upon arrival in Hong Kong, they may already be in debt due to very high fees charged during the recruitment process (training, placement fees, etc.). They may be forced to take loans with high interest rates to repay these costs. With no access to formal credit (bank loans) in Hong Kong, helpers may resort to (licensed or unlicensed) moneylenders. Through Enrich participants, we also sometimes hear that an employment agency may bring them to a loan company as soon as they get here to sign a loan contract to cover recruitment fees - this is essentially money which they don’t actually receive but which they are compelled to pay back for 3-6 months. Often they are not even given certified documentation for their loan.

Also, moneylenders make loans very easily accessible to migrant domestic workers in Hong Kong. Basic requirements are employment contracts and HKID. If they are good borrowers, they may be invited by these loan agencies to renew their contracts and apply for another loan. This could be very tempting to the workers, whether or not they really need the money. 

Repayment of these loans can take months and sometimes years, depending on the size of the loan, and can involve bullying and threats from loan sharks. 

Lack of financial literacy is a huge factor in indebtedness - for example, unaware of the legal responsibility, many domestic workers sign as guarantors for a loan contract. These guarantors can often end up paying for the remaining repayments due because the principal borrower has failed to fulfil their obligation. 

Additionally, emergencies happen, such as medical emergencies or natural disasters - without an emergency fund in place, many domestic workers have to resort to loans in these situations.

In the meantime, domestic workers are also expected to send money home as soon as they arrive in Hong Kong; most support at least 4-5 family members and often do not feel they can tell their families about their financial situation here. 

Financial education is preventative and can provide future protection for your helper and even yourself as an employer! Learn more about our impact and how you can sponsor your helper to attend our courses.

It can understandably be confusing to hear that your helper is short of money - after all, as her employer, you cover the main expenses of accommodation and food. However, domestic workers can still face many pressures on their finances which can lead to a shortfall each month, or severe debt at an extreme level. Here is where her money might go:

Family expenses

For most domestic workers, the main reason they are here is to support their family (often including extended family members) - 50-60% of their monthly salary can typically be sent home. 

Additionally, once they are in Hong Kong, domestic workers are considered to be comparatively wealthier by their families, for whom the salary seems like a lot of money; this places added pressure, especially if they are the sole breadwinner. They are often unable to tell their families of the realities of their situation here, or they struggle with guilt from leaving their children. Therefore, if the family requests gifts or more money for expenses, it can be hard for a domestic worker to say ‘no’ - a challenge we specifically tackle in our Money and Family workshop. 

Loan repayment

Money might also go on repaying debts - Mission for Migrant Workers estimates that domestic workers spend about 36% of their salary on loan and agency fees. Debt can be accrued for many reasons, including recruitment fees, emergencies, major expenses or even holiday expenses. Loans can also be needed to cover finances lost due to investment scams, Ponzi schemes or even friends’ or family members’ loans for which many domestic workers sign as guarantors (without always knowing the legal responsibility). 

A 2017 impact study by the Chinese University of Hong Kong found that following our workshops, there was a 40% decrease in Enrich participants who reported taking on loans without first having a repayment plan. Learn more about our impact.

Big expenses or emergencies

With poor future planning, many sudden or large expenses can also place a huge strain on domestic workers’ finances; for example, without an emergency fund set aside, they often have to take out loans if there has been a natural disaster or medical emergency at home. 

Others

Other regular expenses can include communication expenses, transportation costs, toiletries, clothes and accessories and even donations to charities or religious institutions. 

If you are concerned about your helper’s spending, consider sponsoring her to attend our financial and empowerment education programmes, or refer her to us for a confidential one-to-one financial counselling session to evaluate her finances and help her shape a plan to move forward.

Often, domestic workers sign high-interest loans because they have no choice, or maybe because they don’t know whether the interest rate is actually high/legal or not. 

With no access to formal credit (bank loans) in Hong Kong, they often need to borrow from money lenders in Hong Kong. 

According to the Money Lenders Ordinance, borrowers can legally be charged up to 48% of annual interest on a loan by licensed money lenders. If it can be proven that they are a high-risk borrower, they can be charged up to 60% of annual interest.

Also, money lenders make loans very easily accessible to migrant domestic workers in Hong Kong. Basic requirements are employment contracts and HKID. If they are good borrowers, they may be invited by these loan agencies to renew their contracts and apply for another loan. This could be very tempting to the workers, whether or not they really need the money. In our experience, many domestic workers only focus on the monthly repayment amount and underestimate the significance of the interest rate, often because they may not know how the calculations work.

If they have an existing loan with a money lender or if they’re not eligible to borrow for some reason, some domestic workers might turn to unlicensed money lenders or individuals to borrow money. In these instances, they can often be charged extremely high monthly interest rates (e.g. 20% per month) and might even be asked to provide their passports as collateral (which is illegal). 

Very often, domestic workers might see borrowing money as the only solution to urgent financial needs - financial education can equip them with the tools to plan in advance and prevent these situations from occurring.  

A 2017 impact study by the Chinese University of Hong Kong found that following our workshops, there was a 40% decrease in Enrich participants who reported taking on loans without first having a repayment plan. Learn more about our impact.

In Hong Kong, domestic workers typically earn much more than they might be earning in their home countries. This sudden influx of perceived wealth can create an unhealthy relationship with money if a person isn’t disciplined with their finances and educated in how to manage their spending. 

Most people do not get taught financial literacy in school, and one of the first lessons we teach at our Money Wise Migrants workshop is how to distinguish between a ‘need’ and a ‘want’. Many domestic workers don’t realise that they can achieve a lot if they plan long-term and save in the right way. 

Very often, they face temptation from cheap products or attractive deals - a keen observer in Central or Victoria Park on a Sunday would spot carefully marketed products in stores or informal vendors circling to different groups selling clothes, bags, jewellery, cosmetics and so on. At HK$20 here or HK$50 there, it becomes easy to overspend without realising it. 

Also, once they are in Hong Kong, domestic workers are considered to be comparatively wealthy by their families, for whom the salary seems like a lot of money; this places added pressure on domestic workers, especially if they are the sole breadwinner. They are often unable to tell their families of the realities of their situation here, or they struggle with guilt from leaving their children. Therefore, if the family requests gifts, it can be very hard for a domestic worker to say ‘no ’- another challenge we specifically tackle in our workshop Money and Family. Curbing your spending is hard for anybody, but these skills can be learned.

• HKID card;
• passport;
• national ID card;
• bank savings or account book; or
• photographs of you, your guarantor or your family.

If your helper has given any of these items as security/collateral, encourage your helper to call and ask the money lender for them back immediately. If your helper prefers and if you are comfortable, you could call the money lender yourself (to ensure they take it seriously). If they refuse, contact the Hong Kong Police (999) and your helper’s consulate as soon as possible.

Often, the debt cycle starts with recruitment. For newcomers, upon arrival in Hong Kong, they may already need to take out loans due to very high fees charged during the recruitment process (training, placement fees, etc.). With no access to formal credit (bank loans) in Hong Kong, domestic workers may resort to (licensed or unlicensed) moneylenders. Sometimes, an employment agency may bring them to a loan company as soon as they get here to sign a loan contract to cover recruitment fees. 

Money lenders do not provide the same services as banks - they give out loans only and usually charge higher interest rates than banks. Most licensed money lenders offer loans not just to domestic workers but to residents too. However, they often specifically target domestic workers since they are usually more in need of instant cash. 

The loan companies usually make it very simple for domestic workers to get a loan, which of course makes it even more tempting if you are in desperate need of money. Documents typically required are a copy of their employment contract, a copy of their visa and a copy of their passport. They are usually asked to list references and guarantors as well (usually other domestic workers). If the borrower cannot settle the monthly payment, loan agencies will call and follow up with the references and guarantors. Guarantors can end up paying for the remaining repayments due because the principal borrower has failed to fulfil their obligation - many often sign as a guarantor without understanding what it means.

Settling the monthly repayment can be very simple - either through the bank, at the loan company office or even at any 7/11 (like you would pay for a utility bill).

Often, domestic workers sign high-interest loans because they have no choice, or maybe because they don’t know whether the interest rate is actually high/legal or not. According to the Money Lenders Ordinance, borrowers can legally be charged up to 48% of annual interest on a loan by licensed money lenders. If it can be proven that they are a high-risk borrower, they can be charged up to 60% of annual interest.

Some domestic workers might ‘share’ a loan with a friend, with one person agreeing to be the principal borrower, creating an informal repayment agreement between the friends. This is of course not an arrangement that we encourage domestic workers to pursue. 

If they have an existing loan with a money lender or if they’re not eligible to borrow for some reason, some domestic workers might turn to unlicensed money lenders or individuals to borrow money. In these instances, they can often be charged extremely high monthly interest rates (e.g. 20% per month) and might even be asked to provide their passports as collateral (which is illegal). 

If you are concerned about your helper’s financial well-being, make sure she gets professional advice. You can sponsor her to attend our financial and empowerment education programmes.

Currently, there is technically no legal minimum or cap on the amount that an individual can borrow from a licensed money lender (as of April, 2019). Usually, the maximum amount that can be borrowed, as well as the loan repayment schedule, are calculated by the loan company based on the domestic worker’s salary and the length of her visa. Of course, it is up to the domestic worker to negotiate and decide if she agrees to sign the contract. 

Many loan companies will also provide tempting offers to domestic workers whom they know need the money or who have borrowed before. For example, they might call up those with existing loans and offer them the chance to renew their loan or to borrow a higher sum, increasing the overall amount owed.

If they have an existing loan with a moneylender or if they’re not eligible to borrow for some reason, some domestic workers might turn to unlicensed moneylenders or individuals to borrow money. As these are illegal and unregulated, domestic workers can borrow small or large amounts and might also be subject to illegal and unethical lending practices, such as high late fee charges, passport retention or extremely high interest rates (e.g. 20% per month), which can rapidly increase the overall amount owed and spiral out of control.

The first thing to know is that employers are not legally liable to pay their domestic workers’ loans (unless they have signed as a guarantor). However, if you do start receiving calls or letters from a loan company, have a calm and open conversation with your helper right away to avoid the situation from escalating. Make sure she gets professional advice; you can refer her to us for a confidential one-to-one financial counselling session to assess her finances and identify possible solutions.

Here’s what can happen if a domestic helper misses a payment on her loan:

• She can first be contacted by the loan company or collecting agents as reminders to settle the payment. Letters might be addressed to the employer’s address (even if she has only missed one payment) - but remember, this is her legal address that she can provide in Hong Kong. Also, most loan companies require the landline number of her legal address for loan applications, but they would usually not call on this number unless she defaults on a payment. 

Note: Receiving letters or calls about a missed payment are not immediately a cause for alarm and can often be resolved fairly easily.

• If she misses multiple payments, she might be vulnerable to more aggressive tactics from the loan company or collecting agents who might falsely threaten her with jail or threaten to inform her employers. 

Note: This can be quite a stressful prospect for your helper as she could fear losing her job and source of livelihood. Encourage her to have open conversations with you about any financial worries which she feels might impact her work and refer her to Enrich for a confidential, individual financial appointment. 

• The loan reference and guarantor (usually also domestic workers) might be contacted too if payments are missed. Many domestic workers who sign as guarantors (sometimes without understanding what this means), are often left to pay the remainder of the loan if the borrower defaults or disappears. 

Note: It’s possible that your helper might be chased for a loan for which is a guarantor, rather than the principal borrower. Many helpers sign as guarantors without understanding the legal ramifications of this.

• Collecting agents might also write demand letters and send it to domestic workers’ address in their home countries, threatening family members at home too. These tactics can be very intimidating, and many domestic workers may not know how to communicate with their employers about this.

• If multiple payments have been missed, the loan company/collecting agent may contact the employer. In such a case, you can insist that they speak mainly to the borrower (your helper) and that you are not involved. If you are being harassed by a loan company/collecting agent, remember that terminating your helper should not be the first option, and working together to resolve the issue can result in a better working relationship. 

Note: If you are contacted by a loan company, loan shark or collecting agent whose behaviour is violent or potentially a threat to you or your helper, report them to the Hong Kong Police (999).

It is important to understand that some level of debt is to be expected; for example, there is no point telling your helper that she is never allowed to take out a loan if she already has one. Also, many of us need a loan at some point - for example, if you’re purchasing a house or have a medical emergency. 

To start with, try to hire your helper either directly or through an ethical employment agency to avoid her having to pay high recruitment fees. You can also help her set up a bank account and encourage her to save. 

Speak to your helper in a calm, non-judgemental way about borrowing money. If she does need a loan in the future, let her know she can speak to you first, if you are open to this. We do not advise signing a loan as a guarantor, but you can either choose to lend her the money yourself or help her ensure that the loan company is licensed and that the terms are fair. Caution her against signing a friend’s loan as a guarantor, as that can leave her liable.

If your helper already has a loan, remind her of her obligations to pay and encourage her to speak to you first if she is struggling with her existing loan or if she intends to take a new one.

It is also important to set a good example by paying her salary on time, providing her with payslips and paying her by bank transfer if possible.  

Prevention is better than cure! Sponsor your helper to attend our financial and empowerment education programmes so she can learn how to stay in control of her finances and plan for her future. 

Your helper does not need to use your personal documents or signature to secure a loan. Documents typically required are copies of her employment contract (typically for proof of address - remember, this is her legal address that she can provide in Hong Kong), as well as copies of her visa and passport. She will usually be asked to list references and guarantors as well (usually other domestic workers). The loan will not be in the name of her employer, and you have no legal obligation of paying it (unless you agree to sign as a guarantor, of course). She will also be asked for the landline number of her legal address, though the loan company would typically not call on this number unless she defaults on a payment.

If you are concerned that your helper might have loans, you can make sure she gets professional advice. Sponsor her to attend a confidential one-to-one financial counselling appointment with us to evaluate her finances and come up with possible solutions.

There is no legal method or database to allow you to find out how many loans your helper may have. It is understandable that you might be stressed if you suspect your helper is in debt to a loan shark, but the best thing to do is sit down with her to discuss the situation and possible solutions in a calm and non-intimidating manner. Tell her your concerns and ask her what the issues are and why she might be in debt. She might be facing certain financial pressures or struggles that you are unaware of. 

It is possible that she might not feel comfortable opening up to you about her finances - after all, many of us don’t discuss our finances with our manager at work. Make sure she gets professional advice - you can suggest meeting Enrich for a confidential one-to-one financial counselling session. We provide impartial advice and will help her evaluate her finances and come up with possible solutions.

Debt can understandably be stressful for your helper and yourself as well. After all, a financially secure employee is certainly happy and focused in her work. It is important to understand that some level of debt is to be expected; for example, there is no point telling your helper that she is never allowed to take out a loan if she already has one. Also, many of us need a loan at some point - for example, if you’re purchasing a house or have a medical emergency.  

There are some things that you can do to understand the situation and ensure your helper is supported:

• Sit down with your helper to discuss the reasons for her financial hardship and possible solutions in a calm and non-intimidating manner. 

• Offer her the option of financial education with Enrich, so that she can learn to plan ahead and avoid needing to take unnecessary loans in future. If she has taken out multiple loans, then this is a clear sign that she needs support in managing her finances. 

• Make sure she gets professional advice - suggest meeting Enrich for a confidential one-to-one financial counselling session. We provide impartial advice and will help her evaluate her finances and come up with a plan to move forward. 

• If the situation has escalated and she needs legal advice, she can contact Help for Domestic Workers, Mission for Migrant Workers or the Duty Lawyer Service for free legal support.

Note: If you learn about your helper’s loan through a call or letter from a loan shark, it is important to stay calm and understand the circumstances. It doesn’t necessarily mean that your helper has intentionally hidden this loan from you, and there could be broader context (e.g. she has signed as a guarantor for a friend’s loan). Often helpers are afraid to discuss their financial situations with their employers in case they are terminated, or they don’t know if they should bring it up. Helpers and even their families back home can be victims of harassment from loan sharks. However, terminating her employment should not be the first option, and working together to resolve the issue can result in a better relationship with your helper.

If the behaviour is violent or potentially a threat to you or your helper, report the loan shark/collecting agent to the Hong Kong Police (999) immediately.

As an employer, you are not legally liable to pay your domestic workers’ loans (unless you have signed as a guarantor), but you may face harassment or threats from collecting agents/loan sharks, particularly via phone calls. The Investor and Financial Education Council clarify that debt collection companies cannot attempt to recover debts from anyone other than the debtor or guarantor, and they also cannot employ methods to humiliate/harass the debtor, guarantor, family members or anyone else to recover debts.

Know that terminating your helper should not be the first option, and it won’t necessarily stop the loan sharks from contacting you. Working together to resolve the issue can actually result in a better relationship with your helper.

If loan sharks are harassing you or your helper, make sure your helper gets assistance as soon as possible. Encourage her not to procrastinate and to address the issue in a constructive way. Suggest meeting Enrich for a confidential one-to-one financial counselling session. We provide impartial advice and will help her evaluate her finances and come up with a plan to move forward. 

Besides calling 999 for potentially violent or threatening behaviour, if you feel the loan shark or money lender is harassing you and your helper, you can also make complaints to the following institutions:

• +852 2827 8281 for The Licensed Money Lenders Association (if the lender is licensed with them)

• +852 2860 3574 for the Hong Kong Police, Money Lenders Licensing Section

• 18222 for the Hong Kong Police Anti-Deception Coordination Centre if you are concerned that this is a scam (e.g. a loans scam).

It is ultimately up to you to decide if you are willing to loan your helper money. Whether or not you are willing to lend to her, you can make sure she gets access to professional help in order to address the core issue of financial management. This would give both her and yourself peace of mind, knowing that she has the tools to be financially stable. Managing money is hard for everybody, but these skills can be learned. As an employer, it is important to remember that you are not her financial advisor. 

Have a discussion with your helper about the reason for the loan. Is she comfortable telling you why she needs the money? Is it for a ‘need’ or a ‘want’? What would her options be if you were not to lend her the money?

Here are some things to consider when making this decision:

If you do decide to lend money 

• Set up a written agreement about the amount, how she will be paying for it, the length of repayment time and how much will be repaid per month. 

• Note that repayment cannot be deducted from her salary and must take place in a separate transaction, i.e. you must pay her her full salary each month. 

• As part of the repayment agreement, you can recommend that your helper attends financial education workshops at Enrich.

If you decide not to lend money

• You can still support her by providing her with information. If she decides to borrow from a money lender, you can encourage her to check the following before signing a loan contract:

  • The total loan amount, interest rate and repayment schedule

  • If she can afford the monthly repayment and late fees

  • If the lender is licensed with the Licensed Money Lenders Association. Warn her against borrowing from friends/illegal lenders, which will leave her unprotected

  • If she will receive certified documentation.

  • If the lender wants to keep her passport - no one is allowed to keep her passport except for herself or the authorities.

Regardless of your decision, you can ensure that your helper gets professional advice, either through our workshops or our one-to-one financial counselling sessions to discuss steps forward and learn about debt management, goal setting and budgeting. You can even sponsor her to attend our courses.

Send proof to the loan company that the domestic worker no longer works at that address. The “proof” they need to see is a letter of termination or the notice from immigration saying that they have received notification of the termination. 

You should also make sure that you record having sent that notification to the loan company, so it is recommended to either send it via email or have the letter delivered via registered post.

If you are considering terminating your current helper because you are being contacted or harassed by collecting agents or loan sharks, know that termination doesn’t have to be the first option - and it would not necessarily stop the loan company from contacting you. Consider registering your helper for a confidential one-to-one financial counselling session with us to evaluate her finances and identify a way forward.

It’s great that your helper feels she can talk open up to you about her finances - it isn’t the easiest thing to talk about! If your helper needs to take out a loan from a money lender, there are several questions you can ask her to help ensure the loan terms are fair before she signs a contract. 

Firstly, we advise exploring several options and choosing a loan company with which she feels comfortable with and which offers her fair terms. We encourage her to consider lending from an ethical source. Do not borrow from unlicensed moneylenders, as that can leave her unprotected and vulnerable. Before signing a loan, ask her to consider the following questions:

• Is the loan for a ‘need’ or a ‘want’?

• Is the lender licensed? Unlicensed moneylenders give illegal loan terms.

• Will she receive certified documents (e.g. contracts, receipts, statements) for her records?

• Does she understand the loan terms? Can she afford the monthly repayment and the late payment fees?

• Will the lender keep her passport? It is illegal for anyone to do this except for her and the authorities.

If you are concerned about your helper’s financial well-being, you can make sure she gets professional advice. Sponsor her to attend a confidential one-to-one financial counselling appointment with us to evaluate her finances and create a plan to move forward.

Often, domestic workers sign high-interest loans because they have no choice, or maybe because they don’t know whether the interest rate is actually high/legal or not. 

With no access to formal credit (bank loans) in Hong Kong, they often need to borrow from money lenders in Hong Kong. 

According to the Money Lenders Ordinance, borrowers can legally be charged up to 48% of annual interest on a loan by licensed money lenders. If it can be proven that they are a high-risk borrower, they can be charged up to 60% of annual interest.

Also, money lenders make loans very easily accessible to migrant domestic workers in Hong Kong. Basic requirements are employment contracts and HKID. If they are good borrowers, they may be invited by these loan agencies to renew their contracts and apply for another loan. This could be very tempting to the workers, whether or not they really need the money. In our experience, many domestic workers only focus on the monthly repayment amount and underestimate the significance of the interest rate, often because they may not know how the calculations work.

If they have an existing loan with a money lender or if they’re not eligible to borrow for some reason, some domestic workers might turn to unlicensed money lenders or individuals to borrow money. In these instances, they can often be charged extremely high monthly interest rates (e.g. 20% per month) and might even be asked to provide their passports as collateral (which is illegal). 

Very often, domestic workers might see borrowing money as the only solution to urgent financial needs - financial education can equip them with the tools to plan in advance and prevent these situations from occurring.  

A 2017 impact study by the Chinese University of Hong Kong found that following our workshops, there was a 40% decrease in Enrich participants who reported taking on loans without first having a repayment plan. Learn more about our impact.

There are several ways in which you can encourage your helper to manage her own money:

Provide Access to Education

Financial education is preventative and can provide future protection for your helper and even yourself - a helper who is financially literate can avoid common financial traps, focus on her priorities and ensure a harmonious working relationship with you. Sponsor your helper to attend our financial and empowerment education programmes so that she can learn to budget, save and plan for her future. Our workshops are tailored to domestic helpers’ needs and delivered in English, Tagalog and Bahasa Indonesia.

Give her simple daily financial responsibilities

Think of small ways through which she can practice financial management during her daily work. For example, you could task her with managing the grocery money. This is a way of allowing her to learn about money management in an accountable way, but without encroaching on her private life. 

Encourage her to think long-term

She might be focusing on the next phone call to her family or her activities next Sunday, but you can encourage her to plan for the next several years instead. Ask her what her goals are for the future, and how she plans to achieve them. Encourage her to think of setting aside a small amount each month towards those goals.

Ensure she has a bank account 

Some banks in Hong Kong are not very welcoming when approached by helpers, so you may find it helpful to accompany her to the bank to open an account. Always pay her salary by bank transfer. You can encourage your helper to open a second bank account and have an automatic transfer from her main bank account (where her salary is transferred to) to this second one for savings. 

Although we do not advise any particular bank, you can check out our handy comparison table of different banks and their requirements.

Migrant domestic workers in Hong Kong are not subject to a compulsory pension scheme (such as MPF) as you would be if you worked in an office setting. However, there is no reason for employers not to proactively pursue an insurance arrangement between themselves and their helper.

Ensuring that your helper has a future plan, especially if you are open to contributing to it, can create a harmonious, long-lasting working relationship between you and your helper.

Depending on which country she is from, she might have government pensions schemes available to her in her home country. 

The Philippines

By Philippine law, it is now mandatory for Overseas Filipino Workers (OFWs), which includes migrant domestic workers, to contribute towards their Social Security System (SSS). As helpers are working abroad, their category is OFW/Self-Employed/Voluntary Member, and there is a corresponding schedule for contribution payments. There is no mandatory amount that must be paid towards this each month; the regular payment amount can be chosen by the member. 

Monthly contributions are made via accredited remittance centres that have been approved by SSS. SSS provides multiple benefits to their members, which you can read more about here. The Philippine Consulate in Hong Kong has an SSS Office which can answer further questions.

If you would like to contribute towards your helper’s SSS, you can certainly do so. Currently (as of May 2019), there is no formal process to do so. It is important to note that you would not be contributing officially as an ‘employer’ but this would be a more informal arrangement between you and your helper. Employers are welcome to contribute in either of the following ways:

• Remit money in person via the SSS approved list of banks and payment centres.

• Incorporate the monthly contribution amount (or an agreed percentage of it) into your helper’s monthly salary and request a receipt of the remittance transaction from her on a monthly basis. 

Indonesia

Indonesian domestic workers can choose a voluntary government scheme entitled ‘BPJS’. While BPJS is commonly known for medical insurance, few domestic workers know that they also provide a pension plan. The next time she visits home, your helper can visit her local BPJS office and explore her options. To learn more about the BPJS Pension Plan for Indonesian domestic workers (also known as ‘PMI’), visit their website.

Depending on which country she is from, your helper might be entitled to a number of programmes targeted at returning domestic workers and their dependents, including skills training, reintegration services, grants for small businesses or financial assistance in certain situations. 

Going back home can often be stressful and can bring up many issues and expenses that helpers often do not expect, especially if they haven’t planned for it. Before your helper leaves for good, here are some things you can do to help ease this process:

• Encourage her to complete the full Enrich programme to equip her with knowledge and skills to manage her finances, especially future expenses that will arise when she returns. You can even sponsor her to attend our workshops.

• Suggest that she can take advantage of the numerous training programmes for domestic workers in Hong Kong to gain further skills which she can use for future employment or a potential business back home.

• When paying her long service pay, you can remind her that instead of spending it quickly, she could instead invest it in her retirement savings or pension plan.

Depending on which country she is from, your helper might be entitled to a number of programmes targeted at returning domestic workers and their dependents, including skills training, reintegration services, grants for small businesses or financial assistance in certain situations. 

Going back home can often be stressful and can bring up many issues and expenses that helpers often do not expect, especially if they haven’t planned for it. Before your helper leaves for good, here are some things you can do to help ease this process:

• Encourage her to complete the full Enrich programme to equip her with knowledge and skills to manage her finances, especially future expenses that will arise when she returns. You can even sponsor her to attend our workshops.

• Suggest that she can take advantage of the numerous training programmes for domestic workers in Hong Kong to gain further skills which she can use for future employment or a potential business back home.

• When paying her long service pay, you can remind her that instead of spending it quickly, she could instead invest it in her retirement savings or pension plan.

Savings programmes in Hong Kong

There might be companies or groups which offer savings programmes to migrant domestic workers in Hong Kong, often in combination with micro-finance or investment opportunities. It is important to note that these groups might have a commercial interest in encouraging their participants to invest in products from certain companies. 

As we pledge to provide neutral education and advice, we do not endorse any particular financial product or commercial scheme to migrant domestic workers. However, regardless of where they choose to save or invest, we always advise domestic workers to choose a reputable, established company and to first research whatever programme in which they choose to invest their hard-earned money. 

Opening a savings account in Hong Kong

At the very least, we encourage all domestic workers to open a bank account to assist in saving. However, some banks are not very welcoming to helpers; either they might face discrimination from front-line staff, or they might be asked for many supplementary documents which they do not always have or know how to access. Some of these documents might be easy for you to provide (e.g. proof of address), but your helper might not know whether she can ask you for this. 

For this reason, many employers find it helpful to accompany their helper to open a bank account. The account will not be in your name and will be entirely hers, but your presence can make the process smoother and ensure that she can feel more comfortable asking you for any necessary documentation. We also advise paying her salary by bank transfer where possible, as this is a good record for both you and her, and will also help her improve her savings, rather than having cash always available on hand. 

You can even encourage your helper to open a second bank account and have an automatic transfer from her main bank account (where her salary is transferred to) to this second one for savings. 

Although we do not advise any particular bank, you can check out our handy comparison table of different banks and their requirements.

Savings in her home country

If she has an existing bank account in her home country, encourage her to continue to maintain it, especially if she chooses to remit her savings through her account. You can also encourage your helper to explore savings programmes back home, which might be provided by the government or reputable, ethical organisations.

It’s great that your helper is thinking about how to diversify her income. However, it is definitely advisable to be wary, as there are many schemes which target migrant domestic workers in Hong Kong, many of which are scams. Some domestic helpers might even take out loans or borrow from friends in order to invest in a ‘get rich quick’ scheme, often with unfortunate consequences. With education on what to look out for, these situations are entirely preventable.

As an employer, you can encourage your helper to be aware of investment scams. The most important thing is to encourage her to research and ask detailed questions before deciding on an investment. Suggest that she check whether the company is registered in Hong Kong with the Companies Registry. She can also call the Hong Kong Police’s Anti-Deception Coordination Centre (ADCC) at 18222 if she suspects a scam. For the Philippines, she can check the Securities and Exchange Commission (SEC), which also provides advisories on suspected scams.

Check out our detailed advice to domestic workers on how to avoid scams when investing.

Theoretically, migrant domestic workers can invest in Hong Kong; however, this might be quite challenging in practice. Only 18% of domestic workers here have bank accounts, and many might not be able to maintain the substantial minimum balances or requirements needed in order to access investment opportunities through their bank (such as a securities account to invest in stocks).

There might be other investment opportunities that exist, such as multi-level marketing or pyramid schemes which target domestic workers, but we always advise caution as some of these might be scams, or might require domestic workers to invest large amounts/purchase stock.

Many domestic workers actually prefer to invest in their home countries, as part of their future plans for themselves and their families. For example, they might use their time in Hong Kong to buy land at home, build a house, set up a business or invest in their family member’s education.

Regardless of where they invest, we always encourage our participants to first develop a good and sustainable savings habit to be able to invest enough funds. We always stress that savings have to be the main priority and that they should never invest more than they can afford to lose. When they are ready to invest, they should then begin by doing research, understanding their risk appetite, and so on. 

If your helper is interested in learning more about how to invest safely, you could sponsor her to attend our Growing My Money workshop, which provides a comprehensive introduction to investment tools.

It is important to understand that some level of debt is to be expected; for example, there is no point telling your helper that she is never allowed to take out a loan if she already has one. Also, many of us need a loan at some point - for example, if you’re purchasing a house or have a medical emergency. 

To start with, try to hire your helper either directly or through an ethical employment agency to avoid her having to pay high recruitment fees. You can also help her set up a bank account and encourage her to save. 

Speak to your helper in a calm, non-judgemental way about borrowing money. If she does need a loan in the future, let her know she can speak to you first, if you are open to this. We do not advise signing a loan as a guarantor, but you can either choose to lend her the money yourself or help her ensure that the loan company is licensed and that the terms are fair. Caution her against signing a friend’s loan as a guarantor as that can leave her liable.

If your helper already has a loan, remind her of her obligations to pay and encourage her to speak to you first if she is struggling with her existing loan or if she intends to take a new one.

It is also important to set a good example by paying her salary on time, providing her with payslips and paying her by bank transfer if possible.  

Prevention is better than cure! Sponsor your helper to attend our financial and empowerment education programmes so she can learn how to stay in control of her finances and plan for her future. 

Your helper is definitely entitled to open a bank account in Hong Kong, and we strongly advise that she does so. However, some banks are not very welcoming to helpers; either they might face discrimination from front-line staff, or they might be asked for many supplementary documents which they do not always have or know how to access. Some of these documents might be easy for you to provide (e.g. proof of address), but your helper might not know whether she can ask you for this. 

For this reason, many employers find it helpful to accompany their helper to open a bank account. The account will not be in your name and will be entirely hers, but your presence can make the process smoother and ensure that she can feel more comfortable asking you for any necessary documentation. We also advise paying her salary by bank transfer where possible, as this is a good record both for you and her, and will also help her improve her savings, rather than having cash always available on hand. You can even encourage your helper to open a second bank account and have an automatic transfer from her main bank account (where her salary is transferred to) to this second one for savings. 

Although we do not advise any particular bank, you can check out our handy comparison table of different banks and their requirements. 

According to the Hong Kong Labour Department, the minimum wage for migrant domestic workers is $4,630 HKD for contracts signed on or after 28 September 2019. It is illegal for an employer to pay a wage below this minimum amount. It is also illegal for you and your employee to agree on a wage that is less than the minimum wage.

Your employee is entitled to a food allowance of HK$1,121 per month if you do not provide free food. This is in compliance with section 5(b) of the Standard Employment Contract.

By law, migrant domestic workers must work and live at the employer’s residence only and must receive one rest day off per week, paid holidays of seven days per year of service and statutory holidays. They are protected by the same benefits and protection under the Labour Ordinance like any other local workers in Hong Kong.

For information, consult the Labour Department’s helpful Foreign Domestic Helpers website.

Your helper is definitely entitled to open a bank account in Hong Kong, and we strongly advise that she does so. However, some banks are not very welcoming to helpers; either they might face discrimination from front-line staff, or they might be asked for many supplementary documents which they do not always have or know how to access. Some of these documents might be easy for you to provide (e.g. proof of address), but your helper might not know whether she can ask you for this. 

For this reason, many employers find it helpful to accompany their helper to open a bank account. The account will not be in your name and will be entirely hers, but your presence can make the process smoother and ensure that she can feel more comfortable asking you for any necessary documentation. We also advise paying her salary by bank transfer where possible, as this is a good record both for you and her, and will also help her improve her savings, rather than having cash always available on hand. You can even encourage your helper to open a second bank account and have an automatic transfer from her main bank account (where her salary is transferred to) to this second one for savings. 

Although we do not advise any particular bank, you can check out our handy comparison table of different banks and their requirements.

Employers play a key role in ensuring that the domestic worker they hire is not overcharged or forced to take out loans. Do your due diligence when using an employment agency and use other ethical resources to find your next migrant domestic worker. 

Employment agencies in Hong Kong must comply with the Labour Department’s ‘Code of Practice for Employment Agencies’. If you do find out your worker has been overcharged, help her to get her money back by raising the issue with the agency or reporting it to the Labour Department’s Employment Agencies Administration.

You can consult the Labour Department’s hotline at +852 2157 9537.

You can also call the Indonesian Consulate at +852 6773 0466, the Philippine Consulate at +852 9155 4023 or the Philippine Overseas Labour Office at +852 28660640

The following cannot be taken as security for a loan:

• HKID card;

• passport;

• national ID card;

• bank savings or account book; or

• photographs of you, your guarantor or your family.

It is illegal for anybody except the domestic worker or the relevant authorities to keep her passport, whether as collateral for a loan or otherwise. Note that most licensed money lenders will not retain original passports (though they might ask for a passport copy). Rather, it is often unlicensed money lenders or individual lenders who will retain domestic workers’ passports. 

If your helper has given any of these items as security/collateral, encourage your helper to call and ask the money lender for them back immediately. If your helper prefers and if you are comfortable, you could call the money lender yourself (to ensure they take it seriously). If they refuse, contact the Hong Kong Police (999) and your helper’s consulate as soon as possible.