The $800 to $900 pay range reported is lower than the actual amount needed to hire a foreign worker. While the actual wage the worker gets is about $800 to $900, there are hidden costs.
Among these are the foreign worker levy, the cost of accommodation and the Central Provident Fund (CPF) contributions for the Singaporeans or permanent residents employed before one foreign worker can be hired.
The cost of hiring one foreign worker could add up to more than $1,500 - roughly what is needed to hire a local worker - but employers may still prefer to hire foreign workers as they are deemed more reliable than locals.
To most employers, this so-called scam to get around a quota system for hiring cheaper foreign labour is not a case of fraud, but a win-win situation, as they help some older folk here by contributing to their CPF, as well as gain reliable workers.
The Government should rethink its policy on this issue.
Singaporeans nowadays do not want menial jobs and even if they do, they ask for comparatively higher wages and more benefits.
If this system continues, food and beverage outlets as well as hotels and resorts would not be able to function to their full extent because of all the overheads.
