Can Singapore Employers Legally Ask to See a Candidate's Salary History?

As of the latest update in August 2023, Singapore does not have specific laws prohibiting employers from requesting a candidate's salary history during the hiring process. However, this practice has been increasingly criticized for perpetuating wage disparities and promoting unfair employment practices. In 2021, the Ministry of Manpower (MOM) indicated considerations to address this issue, but no formal laws have been enacted to ban it as of mid-2023.

Why the Debate Over Salary History?

The core argument against asking about salary history in Singapore, as in other regions, is that it can lead to wage stagnation and unfairness. Companies may offer lower salaries to new hires based on their previous earnings, perpetuating a cycle of lower pay for historically underpaid groups such as women and minorities. This can lead to a vicious cycle that contributes to wage disparities.

On the other hand, some advocate for freedom of information. Recruiters and hiring managers argue that understanding a candidate's past compensation is relevant in assessing their value and potential future performance. However, many believe that more context is needed, such as the candidate's role, responsibilities, and economic conditions at their previous workplace.

Current Recommendations and Best Practices

While there are no specific legal prohibitions, the momentum towards more fair and transparent hiring practices suggests that employers should consider discarding the practice of requesting salary history. Instead, they should focus on the candidate's skills, experience, and potential value to the organization.

Employers are encouraged to base job offers on the market rate for the position rather than past compensation. This helps ensure that candidates are not undervalued simply because their previous salary was lower.

Negotiating Your Compensation

It is crucial for job seekers to understand that their current salary has no bearing on what the next job's compensation should be. Similarly, there is no direct comparison across various factors, even if the roles seem similar. This is due to differences in industry, company culture, location, and economic conditions.

When negotiating compensation, it is essential to consider the current job market and the value you bring to the role. Here are some tips to navigate the negotiation process:

Clarify the role and the employer: Recruiters and hiring managers should provide you with a detailed description of the role and the company's culture. Be wary if the hirer does not disclose this information. This information is crucial for you to determine your expected compensation. Don't disclose your salary history: You are not legally obliged to provide this information. If asked, you can tactfully refuse or provide a made-up figure. Remember, market rate research is available, and this information is often sufficient for negotiations. Understand the recruiter's role: Recruiters are often paid a commission based on the end placement, and may have incentives to keep the offer as low as possible. Approach the negotiation process with this in mind. Be confident: While recruiters may lowball you to have room to negotiate, it is essential to confidently set your expectations and advocate for a fair offer. Know your worth: Research the market rate for the position and be prepared to justify your expectations based on your experience and qualifications.

Conclusion

Singapore's employment landscape is evolving, with a growing emphasis on fair and transparent practices. Although there are no current laws preventing employers from requesting salary history, it's essential to approach the process with awareness and confidence. Candidates can empower themselves by understanding the value they bring to the job and negotiating for fair compensation based on market rates.

Ultimately, the onus is on employers to focus on merit rather than past compensation, ensuring a more equitable and just hiring process for all candidates.