No-fee move likely to pump up Indonesian helpers' pay to $6,000

Wages of Indonesian helpers could go up to HK$6,000 a month as agencies worry a new policy in which employers bear all transport and administrative costs has already boosted the pay of those already working in Hong Kong.

Indonesia has implemented a "zero-fee policy" that requires employers to bear all hiring costs.

Thomas Chan Tung-fung, chairman of the Hong Kong Union of Employment Agencies, said the 140,000 Indonesian helpers now in Hong Kong do not fall under the new policy.

But Chan is worried their salary might go up to as much as HK$6,000 a month from the government-set minimum of HK$4,730.

He said Indonesian authorities have met with representatives of the Hong Kong government and employment agencies and expect the arrangement to be fully implemented within two weeks.

Chan added: "There are around 20 agencies in Indonesia which had their license revoked for failure to follow the rules. This shows Indonesian authorities are determined to implement the zero-fee policy."

Local licensed agencies predicted about 20 percent of families would choose helpers from other places.

Betty Yung Ma Shan-yee, chairwoman of the Hong Kong Employers of Domestic Helpers Association, said Indonesian authorities should make clear the details of the additional costs.

"The fees that employers are currently paying already include visa and contract expenses for Indonesian domestic helpers to work in Hong Kong," Yung said.

She suspects it is employment agencies in Indonesia overcharging domestic helpers and forcing Hong Kong employers to pay more due to the demand.

"I am worried that Indonesian authorities will impose more charges on Hong Kong employers or prompt other countries that export helpers to follow suit," Yung said.

She added that employers are now considering hiring helpers from other countries or employing those who are currently in Hong Kong.

It means the policy is affecting job opportunities of Indonesian helpers, she said.

She also suggested that the government look into possibilities of allowing in mainland helpers.

Election Committee sector lawmaker Michael Lee Chun-keung of the Liberal Party said he is worried Indonesian helpers currently in Hong Kong would take advantage and ask for bigger pay or go "job-hopping."

Employers should also be allowed to pay the fees in separate installments, he suggested.

Representatives of the Indonesian government met with Legislative Council president Andrew Leung Kwan-yuen yesterday.

michael.shum@singtaonewscorp.com