Helpers Debts Before She Starts

I have recently been hearing about helpers that start their contracts with huge debts to agencies both here and back at home. The sums mentioned were so high that I calculated it would take almost a year of minimum helpers wages to pay off. Is this normal? And if so, is it ethical to hire such a person (normally a woman) when they have such a bondage of a contract. Is it instead not better to hire a helper already in HK and looking for work without an agent to pay off forever?


I am looking to hire full time but do not want to indirectly support what doesn't appear to me to be a transparent and fair system at the moment. Is this correct or have I heard untrue information?


Please advise. Thanks.

Unfortunately it is quite common for helpers to have pretty substantial debts prior to starting.


I would say that it is just as ethical to hire a helper with debt as one without. It is their business whether they have debt. My guess is their plan is to pay off the debt during the contract, and hopefully renew or get another employer without extra expense. The level headed ones manage this. Of course there are potential snags such as getting laid off. It's not a perfect system.


The real issues come up when the debts spiral out of control due to incessant demands from home and new loans from loan sharks.


In my opinion some people can handle having debt and some cannot. The former will just say no to demands from home if they cannot support them. The latter will take on more debt than they can handle and not be able to pay back. Whether the debt is from agency fees or whatever does not change this. It's down to a person's character.



"I am looking to hire full time but do not want to indirectly support what doesn't appear to me to be a transparent and fair system at the moment."


That is of course your decision and you have to make it based on your moral compass. But I don't see what is really so unfair about the system. The helpers know they will be taking on debt without any guarantee of employment. It's a gamble they take. Tough on them? Certainly. And their lives are typically very tough compared to those of their employers. But I wouldn't call it unfair or non-transparent since they know what they are getting into. They keep applying in droves despite the risks and the debt. Many helpers can support their entire family with their salaries, which explains the attraction.

Of course this is an ethical problem. I do not think you can honestly compare a university graduates salary, prospects and potential with a helper that earns approx 4000 HKD every month and has very little chance of increased earnings or of a higher position. Of course an agency must charge something as they are a business. I am just concerned about the amount of dept they are closing on these women. As employers we must be aware of these things and not close our eyes to it. I would like to know more about the fees to the helpers from agencies, employers and of course helpers themselves. Thanks.

Whichever way you choose, each will have its risks !


We have tried both, hiring direct from PI and employing DH with employment history in HKG, debts are unavoidable, as the DH is required to support the family, plus extended family, all too common in PI !


DH's with employment history in HKG "normally" handle the debts that they have quite well, they know the system, have made contact with a business that will assist with repayment plans to PI.


However, in saying that, there are also those that handle their debts badly and get into all kinds of trouble with loan sharks - this sometimes, leads to the doorstep of the DH's employer !


New hires from PI are a bit of an unknown, if they are new to HKG, they work hard and shoulder the responsibility, that is, once they have got over the homesickness ! (This can all change depending on the circle of 'friends' they join !!!)


Dependng on the amount of debt inccured and the age / experience of the DH, employers are usually kept away from the DH's financial matters.


We had our fair share of "Sir / Maam I need advance payment" (normally via Maam !), or "I need money for medical for my family", or "my family needs to make payment on our lot lease or we will lose our family land" etc etc and I am sure a lot of people on this forum have had the same experience - at the end of the day, you have to make a decision on how far you go to support your DH's family.


We set up a simple financial repayment plan for each of our DH's who requested help and made sure they stuck with it - all within the confines of their monthly salary !


There is no avoiding it (helper debt), as with our own personal lives, its all about managing finances. Give them the tools and support where necessary / if required and they will get through it.

From what I hear, helpers from Indonesia seems to be burdened at the start with much more debt than their Filipino counterparts. (Mostly from the agents charging them in excess of HK$20,000 for placement fees etc.)


I think you can help minimize their starting debt burden by choosing a fair agency. One that charges both you and her roughly the same amount. (Some unscrupulous ones will charge the employer less or even nothing! And stick the bill to the helper.) If you do hire someone who has already worked here before, forego the agency route if you have time to go the Direct Hire route and take care of the paperwork yourself. (It's a bit tedious but it does save the helper quite a bit of money.)


I think it's not realistic to say "no advances, no loans, no guarantees" and expect the helper to follow that, especially if she gets desperate for money at home. For us, we prefer the lesser evil of lending to her ourselves, so we say "absolutely no loans and no guarantees for your friends/family etc." BUT we will allow salary advances (no more than the current month's) for emergency situations. If she runs into greater trouble, I prefer she comes to us and we work out a payment plan together.