As an employer of a domestic helper or maid, you might be wondering how to pay your helper’s salary. Here are different ways that we would recommend for your convenience:
1. Paying your helper’s salary in cash
Most domestic helpers would send their salary home in cash to their families via remittance companies such as Western Union or International Money Express and keep a certain amount of cash for themselves as their pocket money in Malaysia. During pre-pandemic times, it would be convenient for domestic helpers to send their money home over the nearest remittance counter on their off days.
2. Paying your helper’s salary online through remittance platforms
Since the pandemic hit, online remittance has become a more convenient and popular option for both employers and helpers. You may remit a pre-determined salary amount directly to your helper’s family members or dependents via online remittance options (e.g. WorldRemit). The remainder of the salary can be paid in cash to your helper to be used as pocket money during her time in Malaysia. For more information on online remittance, you may refer to our post here.
3. Transferring money into your helper’s e-wallet (if applicable)
E-wallets such as Touch ‘n Go e-wallet or Grab e-wallet are commonly used among Malaysians. Consumers with no bank accounts may also utilise e-Wallets! For example, Merchantrade is a financial services company that offers e-Wallets, corresponding money cards and providing subsequent remittance services for persons without bank accounts. If your helper has a Merchantrade e-wallet and a Merchantrade money card, you can transfer her salary directly to her money card through services like Maybank2U Visa Direct. She will then be able to remit her salary back home using her Merchantrade e-wallet herself.
- We recommend that you pay your domestic helper’s salary by the end of every month worked and in any event, no later than the 7th of the following month so that your helper can manage her financial obligations effectively. Many helpers are the sole breadwinners of their families and need to remit money home to pay for utility bills, tuition fees and more.
- Do calculate and include overtime pay on top of your domestic helper’s base salary for every rest day that your helper worked.
- We would also advise keeping a record of every salary payment, getting both parties to sign off on each payment made for better employee management. You may refer to these records in the future if required.
- If you are a Malaysian employer of a foreign domestic helper, don’t forget that you are also required to contribute 1.25% of your helper’s monthly salary, including overtime pay to SOCSO. For more information, you may refer to our post here.
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