HOME reiterates concerns over predatory recruitment practices trapping migrant workers in debt
HOME has renewed warnings that recruitment practices continue to trap migrant domestic workers in heavy debt, heightening their vulnerability to abuse. The group called for stronger enforcement and long-term adoption of a zero recruitment fees model.
- HOME says recruitment-related debt continues to expose migrant domestic workers to exploitation.
- Current regulations cap local agency fees, but overseas charges remain largely unregulated.
- The organisation urges stronger enforcement, cross-border cooperation, and a shift to zero recruitment fees.
SINGAPORE: The Humanitarian Organization for Migration Economics (HOME) has reiterated concerns that recruitment practices continue to trap migrant domestic workers (MDWs) in debt, leaving them vulnerable to exploitation and abuse.
In an article published on 23 January 2026, HOME said that despite existing regulations, recruitment-related indebtedness remains widespread, particularly among MDWs, due to fees charged by both local and overseas agents.
According to HOME, the debt burden often shapes workers’ behaviour during their initial months of employment, limiting their ability to assert rights or exit unsafe working conditions.
Case study highlights prolonged salary deductions
The organisation highlighted the case of “Rini”, whose name was changed to protect her identity, as an illustration of how recruitment debt operates in practice.
Rini’s total recruitment fees amounted to S$3,800, which were deducted over more than eight months.
During this period, she received a monthly “allowance” of about S$140 instead of her full salary.
A photograph of her salary schedule, shared by HOME, showed how prolonged deductions significantly reduced her take-home pay and extended her dependency on her employer.
Regulatory gaps and overseas recruitment fees
In Singapore, employment agencies are not allowed to charge more than two months’ salary for a two-year work permit.
However, agencies may collect fees on behalf of overseas counterparts.
As a result, HOME noted that total deductions frequently stretch beyond four months, reflecting recruitment costs incurred in both Singapore and workers’ home countries.
HOME said this indebtedness increases workers’ exposure to exploitation, as many feel compelled to endure poor conditions to avoid defaulting on their loans.
Increased vulnerability during deduction periods
For MDWs, the organisation reported that the salary deduction period is often accompanied by fewer rest days and restrictions on mobile phone use.
Some workers also have their passports confiscated during this period, despite such practices being illegal, reportedly to prevent them from leaving their employment.
Others are denied transfers even when working conditions become untenable, and are told to wait until their salary deductions are completed, according to HOME.
The organisation said these practices reinforce power imbalances between employers and workers, especially during the early months of employment.
Calls for zero recruitment fees and interim reforms
HOME has long advocated a shift towards a “zero recruitment fees” policy, where no recruitment costs are borne by migrant workers.
It said the longer-term objective is alignment with the International Labour Organization (ILO) Fair Recruitment Initiative, which promotes an employer-pays model.
However, HOME acknowledged that interim measures are necessary while broader structural reforms are pursued.
One concern raised was the inconsistent provision of itemised breakdowns of recruitment fees, despite legal requirements for employment agencies to disclose such information.
HOME said better enforcement is needed to ensure workers fully understand the debts they are expected to repay.
Need for cross-border cooperation
The organisation also called for stronger cross-border cooperation with workers’ home countries to regulate recruitment fees more effectively.
According to HOME, greater political will is required to ensure that bilateral and regional agreements prioritise labour standards, transparency, and fairness.
The issue of recruitment-related debt has been widely documented in Singapore, where migrant workers can incur fees ranging from S$3,000 to more than S$15,000.
MOM says Singapore lacks legal reach over recruitment fees charged in migrant workers’ home countries
On 8 January 2025, then–Nominated Member of Parliament Jean See asked the Manpower Minister about planned transnational measures to curb excessive recruitment fees.
She also sought clarification on new safeguards to ensure that employers hiring migrant workers are responsible and financially sound.
Responding at the time, Manpower Minister Dr Tan See Leng said MOM regulates employment agency activities in Singapore, including setting limits on fees collected from workers.
However, he noted that Singapore does not have legal jurisdiction over recruitment fees charged in workers’ home countries, which often make up the bulk of the debt.
Instead, Dr Tan said MOM works with industry partners to explore measures such as direct outreach and referral programmes.
These initiatives aim to reduce workers’ reliance on foreign recruiters or middlemen when seeking jobs in Singapore.
