It’s great that you’re 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.

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 to ask 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.

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.

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.

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.

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.

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 Labor Office at +852 28660640

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 to ask 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.

The possibility of receiving extra money, for example a bonus or lai see is certainly one to look forward to! This is a good opportunity for you to grow your savings, add to certain funds that you have budgeted for, or make an important payment. But as much as we want to make sure our hard-earned money is being saved, it is important that we also don’t feel deprived.

Whenever you receive any extra money, your options are always to either spend it, save it or invest it. Let’s explore each one!

Spend it: Spending this money immediately won’t make it last very long, but it could go towards an essential cost. If you have any outstanding debts to pay, prioritise paying off your debts first with this money and reward yourself to freedom from these debts. It could also cover several smaller but necessary expenses like the service fee for your mobile phone or remittance cable charge costs for when you send money home.

Save it: Could you save this money for your long-term goals, such as your children’s education or a large purchase for your home? It could also go towards an emergency fund - it is crucial to have an emergency fund, especially so you can bounce back during a financial crisis (e.g. if you lose your job, or have urgent medical needs).

Invest it: While you put off spending it, why not make the additional money work for you by investing it? Research and carefully consider investment options available. You could also consider investing it in something that could pay off for you or your family’s future, such as in upgrading your existing business or in your own education/skills-training. If you’ve received a monthly salary increase, as opposed to a one-off bonus, investing the extra income could allow you to gain the most out of your earnings (if you’re not in urgent need of spending it). For example, if you put HK$100 per month into an investment instrument with an interest of 6% per year, it could potentially yield over HK$7000 in five years with compound interest.

Don’t forget, try to resist the temptation to indulge in expensive restaurant meals, treats, and sales on your days off - otherwise you’re just spending your extra money in other ways!

Also, remember that although you may receive a good amount of money from lai see or bonuses in some years, that might not always be the case. In times when there is an economic crisis or recession (for example, during the Covid-19 pandemic), you may receive less - if you’ve been ear-marking this money towards a certain goal, make sure you have a back up plan.

Firstly, you do not have to manage this alone and help is available. If you are so worried about your finances that it is affecting your work and your relationships with your family/employer, then it is time to seek help. Remember that it is best to seek help from experts and not from your peers or unverified internet sources. Contact Enrich to arrange a free confidential financial counselling session to help work out your finances and come up with a way forward. We remain completely neutral, we do not judge, and we do not promote/endorse any financial products or companies.

If you are worried about telling your family of your financial difficulties, start by approaching a family member who you trust the most and who can be your advocate/supporter at home. Schedule a phone call with your family, prepare for what you will say and explain your situation clearly. At the end of the day, money is not everything and you need to come together to work as a team - this might mean that they have to be more understanding of your situation, as well as disciplined and frugal with their finances in order to support you. 

If you feel comfortable, and if your employer is open to it, you could have an open conversation with your employer about your financial plans and difficulties, including your goals, debts or worries. Assure them that you are seeking a solution so that you can continue to focus on your work and not be distracted by stress. This might help clear any misunderstandings with your employers and also help them feel more comfortable in communicating with you about this issue. 

If your feeling of stress or anxiety persists, or if you are having suicidal thoughts, help is available. Call +852 2896 0000 (24 hour hotline) for The Samaritans Suicide Crisis Intervention Centre, available in multiple languages.