Many helpers start work with a placement loan to repay. As the employer you do not need to manage her finances, but understanding the schedule helps you pay correctly, keep good records and spot problems early.
Where the loan comes from
Helpers usually pay a placement fee to the Singapore agency, which the law caps at one month of her fixed salary for each year of service, up to two months. Some employers advance this as a loan that she repays monthly. The IPA letter shows her fixed monthly salary and the fees paid to the Singapore agency.
Your responsibilities
- Pay her salary in full and on time: within 7 days of the end of each salary period, at the amount declared to MOM.
- Put any repayment in writing: MOM encourages employment contracts to cover placement loans.
- Keep clear records: each month's salary, any agreed repayment and the remaining balance, signed by both of you if you pay in cash.
- Do not keep her money: since 2019 MOM has not allowed employers to keep a helper's salary, bank book or bank card, even if she asks.
Warning signs to watch for
- She seems anxious about money or asks for advances often.
- She mentions owing money to people outside the agency.
- Calls or messages from unknown lenders.
MOM's feedback form lets employers report a helper who has borrowed from unlicensed moneylenders, with a police report. Before that, a calm conversation often helps: she may simply need help budgeting or sending money home safely.
If the placement ends early
If she leaves before the loan is repaid, check your contract with the agency. MOM's licence conditions require agencies to state their refund policies for placement loans, and MOM notes that some agencies do not require employers to extend loans at all.
Helping her manage money
- Help her open a bank account in her own name and pay salary into it.
- Show her how to use a remittance service that shows fees clearly.
- Encourage a small monthly saving once the loan is cleared.
Read more in our guide to placement fee arrangements.
Official source: MOM's salary guidelines for employers.
A sample monthly routine
- On payday, transfer her full salary to her own bank account.
- If a repayment is agreed, record it on the loan sheet with the new balance.
- Both of you sign the sheet, or keep the bank reference if you paid by transfer.
- Once the balance reaches zero, write "loan fully repaid" with the date and both signatures.
Common questions
Should I hold her salary until the loan is repaid?
MOM does not allow employers to keep a helper's salary. Pay her declared salary on time and record any agreed repayment separately.
How long do placement loans usually take to repay?
It depends on the amount and the agreed monthly repayment. The schedule should be written in the contract so both of you can track it.
Last reviewed: September 2026. Procedures change, so confirm the current steps on mom.gov.sg or with your licensed employment agency.
