High wages of foreign domestic helpers lead to wrong recruitment, and the introduction of credit reports helps protect the interests of employers

Hong Kong has been hit by the fifth wave of the epidemic, and the arrival of foreign domestic helpers in Hong Kong is restricted by the supply of quarantined hotels and flights, which greatly increases the burden on employers of foreign domestic helpers.

In addition, due to various epidemic prevention restrictions, the supply of domestic helpers in Hong Kong exceeds the demand, resulting in a great increase in demand pressure.

The current situation reflects that even if employers raise wages and pay for additional isolation fees, the quality of foreign domestic helpers is not as expected under the fierce competition for the demand for foreign domestic helpers, which increases the risk of wrong recruitment.

In view of this, some credit reference service agencies provide CIC credit reporting services in the Philippines, allowing employers to understand the detailed background and potential risks of admitted foreign domestic helpers as early as possible.

The asking price of the foreign domestic helper’s salary is as high as HK$8,000, and the foreign domestic helper’s agency fee and quarantine expenses increase the burden on the employer

As of July 2022, the current statutory minimum wage for foreign domestic helpers in Hong Kong is HK$4,630 per month. A person in charge of a Hong Kong employment center said that under the situation that the supply of foreign domestic helpers continues to be tight, the wages of foreign domestic helpers have risen to HK$6,000 to HK$6,500.

But if you need to take care of the elderly or the disabled, the salary of the foreign domestic helper can be as high as HK$8,000 to HK$9,000.

Some employers even tried to renew the contract with the current foreign domestic helper and offered to raise their salary to HK$8,000, but failed to retain them.

The above-mentioned high-paying contract renewal is absolutely justifiable, because the current agency fee for foreign domestic helpers coming to Hong Kong is generally about HK$17,000, plus the quarantine fee of about HK$2,500, and the quarantine accommodation fee in the quarantine hotel is estimated at about HK$1,000 per day. If an intermediary is required to follow up the quarantine process, an additional fee of about HK$1,500 will be charged, that is, the admission fee for hiring an overseas worker sister to work in Hong Kong exceeds HK$24,000.

Compared with about HK$8,000 for renewal, there is still a certain distance, so employers are attracted to retain workers with high salaries to renew their contracts.

It can be seen from this that, regardless of whether it is a local foreign domestic helper or an overseas worker's sister, under the situation of increasing demand for both and "missing and not letting go", the higher the salary of the foreign domestic helper, the more uneven the performance of the foreign domestic helper, and the increase in negligent recruitment. risks, such as foreign domestic helpers borrowing money to affect the daily life of employers, substandard work services, and lack of understanding.

Originally expected to use high salary in exchange for a better quality of life, but in the end it was exchanged for a more troublesome life.

Employers worry about foreign domestic helper loan case

It is absolutely excusable for anyone to borrow money to solve their family and life needs. As long as there is borrowing and repayment, it is only a matter of personal life if one carefully considers personal financial affordability and does not affect the lives of others.

However, some cases of foreign domestic helpers borrowing money and affecting the employer's life have occurred from time to time, causing the employers to worry and be overwhelmed.

Faced with this situation, employers should actually understand the personal financial background and loan history of the foreign domestic helper in the place of origin before hiring a foreign domestic helper.

By referring to past financial records, employers of FDHs can avoid FDHs who are prone to excessive borrowing or financial pressure.

However, it is difficult for the foreign domestic helper agency, which employers rely on most, to respond to the financial situation of the foreign domestic helper, because such background information requires the foreign domestic helper agency to spend extra money to purchase the foreign domestic helper's credit report to understand.

In addition, once it is necessary to truthfully report the loan records of foreign domestic helpers, some unscrupulous foreign domestic helper intermediaries will think that this is a move that hinders the progress of business.

Philippine CIC credit report helps protect employers' interests

Seeing that employers are helpless when it comes to borrowing money from foreign domestic helpers and understanding their background, local credit reference service agency Novartis has recently cooperated with CRIF, a well-known European credit information provider, to launch the Philippine CIC credit report in Hong Kong.

If a Filipino has borrowed money in the Philippines and is included in the CIC credit database, the report will show the Filipino's credit history, credit details and credit score in the Philippines.

The relevant records will also be accompanied by the Filipino's address information and employment history records in the Philippines.

Therefore, employers need to purchase a Filipino CIC credit report when the foreign domestic helper is hired in the Philippines, so as to have a deep understanding of the foreign domestic helper's financial background in the Philippines, and after checking the financial risks, it will help to consider potential risks and countermeasures. Plans to ensure family safety and quality of life.

Due to the low cost of the Philippine CIC credit report, many employers have attracted many employers to obtain a Philippine CIC credit report for independent review while hiring workers through employment agencies.

Philippines CIC credit report information:

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National-level database to assist in providing correct foreign domestic helper information

The “CIC” in this Philippines CIC credit report is “The Credit Information Corporation”. The source of the report refers to the Philippine National Public Credit Registry and Credit Information Repository, which currently has 30.7 million personal credit data and more than one It is the largest and most comprehensive credit database in the local market.

Based on the Republic of the Philippines Act No. 9510, the Credit Information System Act (CISA), CIC's database covers approximately 45% of the adult population and includes the credit history of most Filipinos.

The CIC credit report consolidates the positive and negative credit history of all lenders to provide a complete personal credit profile.

At present, if employers want to obtain a Philippine CIC credit report, they must first check the process and required documents with Novartis Integrity, and make an appointment to prepare for Filipinos to perform identity verification and obtain a credit report in person.

Philippines CIC Credit Report Inquiry and Appointment Tel

Nova Credit Limited, Nova Credit Limited

Tel: (852) 3854-0188

Email: customercare@nova-credit.com

Related webpage: Learn more

Utilizing Filipino CIC Credit Reports to Assist Foreign Domestic Workers with Double Onboarding

As mentioned before, the Filipino CIC credit report can not only help employers of foreign domestic helpers to understand the financial situation of foreign domestic helpers in the Philippines, but also have the opportunity to assist employers to do a two-factor authentication when Filipino foreign domestic helpers are hired.

When requesting a Filipino CIC credit report in Hong Kong, the customer service specialist of Novartis Integrity, a credit reference service agency, will ask the foreign domestic helper to provide identification documents. After on-site verification, the Filipino CIC credit report will be provided.

If the foreign domestic helper has engaged in lending activities in the Philippines, and the relevant activities are recorded in the Philippines CIC credit information database, their residential address and employment history information will be disclosed in the CIC credit report.

These FDHs' identity information and records can prevent FDHs from misreporting or underreporting information, and conduct dual identity verification work for FDHs.

In addition to understanding the credit background of the foreign domestic helper, it can also deepen the understanding of the identity background and improve the awareness of risk prevention.

Philippines CIC Credit Report Inquiry and Appointment Tel

Nova Credit Limited, Nova Credit Limited

Tel: (852) 3854-0188

Email: customercare@nova-credit.com

Website: Learn More

(Information provided by customer)