Domestic Workers in Southeast Asia: Migration and Standards of Living

In Southeast Asia, the question of domestic workers has been a contentious issue, for its wide-ranging implications on immigration policy, wealth gap, and racial as well as social dynamic. Domestic work, defined by the ILO as work within the context of a household, usually ranges from cooking and cleaning to elderly and child care. In 2015, the ILO estimated that Southeast Asia and the Pacific had 9.1 million domestic workers, around 14% of the global employment. With its scope and significance, there needs to be a retelling of the story behind domestic work. 

From the migration standpoint

A 2012 World Bank report has noted the shift in the flow of migrant workers in Southeast Asia. While a popular destination has traditionally been the Middle East, recent economic development in Southeast Asia along with the establishment of the ASEAN Economic Community in 2015 has encouraged more inner-region migration. 

Such growing localized immigration has created new legal avenues for governments. Southeast Asian states seem to seek two paths in resolving such legal questions. The Philippines exemplified the first path with its creation of the Philippine Overseas Employment Administration (POEA). The governmental agency took on the role of a medium between the states and private agencies which carried out the process of recruitment and sending labor overseas. The Administration has been instrumental in ensuring that domestic workers receive benefits in terms of “minimum wages and rest days.” In addition, it is important to recognize that the POEA also took an active role in finding new markets for Philippine workers. 

The second path that countries have undertaken is the bilateral Memorandum of Understandings (MOU). For example, the MOU between Malaysia and Indonesia on the Recruitment and Placement of Indonesian Domestic Workers also addressed a wide range of economic security for workers ranging from minimum wage, recruitment practices, and responsibilities of employer. However, while it seemed that such MOU provided a comprehensive approach, an International Labor Organization report in 2015 questioned the implementation of such document. The report asserted that there is “little evidence that the recruitment process has changed,” due to the continuing presence of labor brokers. The presence of labor brokers, who did the recruitment processes for labor agencies, meant that many legal stipulations aimed at domestic workers agencies were voided. The same ILO report also pointed out the explicit provisions regarding human rights issues are “rarely found in Asian agreements.” 

Protest in favor of worker’s rights (Source: South China Morning Post)

The lack of governmental oversight over the private sector suggests that there is a “regulatory grey zone” when it comes to domestic workers. Juanita Elias from the University of Warwick argues that agencies have considerable room for maneuver to “operate outside of the legal frameworks.” An example of such practices was the way agencies circumvent the ban on sending Indonesian domestic workers to Malaysia from 2009 to 2011. Agencies brought in workers with short-term visas, which then became work permits. 

Regardless of the paths that Southeast Asian countries take, the common nominator seems to be the entrenchment of domestic workers as migrants. Coupling with the reality that private agencies maintain many leeways to organize contracts, domestic workers have little power in controlling their status as well as conditions. It is important to recognize that even when domestic workers receive a respectable monthly wage, their living conditions are still dependent upon the type of living, food, and transportation arrangements that their employers provide, which rarely undergo regulatory oversight. Olivia Killias from the University of Zurich demonstrated in her study of Indonesian domestic workers in Malaysia a telling result: when domestic workers run from their employers, even though the risk of deportation increases, these workers also find higher wages jobs. 

The economic story

The economic story begins with the economic disparity between countries in Southeast Asia. According to Amarjit Kaur, Singapore, Thailand and Malaysia are the main destinations while Indonesia, the Philippines and Malaysia are the “principal source countries.” However, Laos, Cambodia, Vietnam, and Myanmar are becoming increasingly significant as a contributor of domestic workers.  Such a development is not surprising. In 2018, the GNI per capita (PPP) of Singapore was at $94,500, 7.5 times higher than that of Indonesia and almost 9 times higher than that of the Philippines. 

The Ministry of Manpower of Singapore reported that there are 255,000 foreign domestic workers as of June 2019. An estimate mean wage of a live-in foreign domestic workers is S$600 (Singapore dollar, equivalent to $439) with food provided. To put this into perspective, the minimum wages for cleaner job is S$1,200 ($878). However, it is also important to note that foreign domestic workers would not receive benefits such as the progressive wage model regarding pay scale and bonuses for Singaporean citizens. 

The figures in Thailand and Malaysia pose a much greater challenge. In Thailand, the wage of domestic workers falls between 6,000 and 20,000 baht ($198-$661), with the knowledge of English as a huge upside. In comparison, the minimum wage of Thailand is 300 baht ($10) a day or 9000 baht ($298) for a full working month. Yet, it is again critical to note that the labor protection for severance pay, overtime work, and minimum wage does not apply to foreign domestic workers. Even more critically is the reality that the majority of foreign domestic workers do not have a written contract. In Malaysia, an average wage would fall around RM1,600 and RM1,800 ($383-$431), with the country's minimum wage at RM1,100 ($264). However, the similar problems of lack of legal backing remains, along with the blurred areas of working/living standards.  

Across three cases, the conclusion is consistent: foreign domestic workers work close to the line of minimum wage, if there is one in place. However, the main challenges came from the lack of protection under domestic labor laws and many grey legal areas that are not covered in these workers’ contracts, if any such contracts exist in the first place.