Do I Have to Raise My Helper’s Salary When the Minimum Wage Goes Up?

Short answer: not during the contract she is on now, but yes when you renew. A wage revision does not reach back into contracts that were already signed — it applies to contracts signed on or after the day it takes effect. That single rule settles almost every version of this question.

During an Existing Contract: No

• A revision announced today does not change a contract signed last year. You are not underpaying, and you are not required to top anything up.
• This is why two helpers living in neighbouring flats can lawfully be on different wages. Both employers are complying; they simply signed on different dates.
• You may always pay more than the minimum. Nothing stops a voluntary increase — but read the section below before you commit to one.

At Renewal: Yes

A renewal is not a continuation — it is a new two-year contract, and it must meet the Minimum Allowable Wage in force on the day you sign it. If the rate rose since you last signed, your renewal carries the higher figure.

• Budget the wage increase before you agree to renew, not after.
• The Employees Retraining Levy falls due again on renewal, so the two costs land together.
• If you do not provide food, the food allowance is revised alongside the wage — check both figures, not just the wage.

The Timing That Catches People Out

Revisions are usually announced in late September and take effect within days of the announcement. If your renewal falls anywhere near that window, a few days either side of the effective date changes which rate your contract carries for the next two years. Check whether the new rate has taken effect before you sign, rather than assuming the figure you budgeted in August still applies.

If Your Helper Asks for a Raise

She may well have compared notes with helpers nearby who signed more recently and are lawfully earning more. The honest explanation is that her wage was set by the date her contract was signed, and it will move at renewal. That is a fact about how the system works, not a refusal.

Whether to raise it anyway is a retention question rather than a legal one, and it is entirely yours to make. Just go in knowing that an increase is permanent for that contract and follows through to the final settlement.

Common Mistakes

• Assuming a revision applies to everyone immediately. It applies to contracts signed on or after the effective date.
• Renewing at the old rate. A renewal is a new contract and must meet the current minimum.
• Comparing against a neighbour’s helper and concluding someone is underpaid. Different signing dates, both lawful.
• Raising the wage without realising it also raises severance and long service payment, which use the last month’s wages.
• Watching the wage but not the food allowance. If you pay the allowance rather than providing food, both figures move.

This article is for general reference and is not legal advice. Confirm the current Minimum Allowable Wage and food allowance with the Labour Department before signing or renewing.