Can Employers in Singapore Ask About a Candidate’s Last Drawn Salary? What You Need to Know

As a small business owner in Singapore, understanding the nuances of fair employment practices is essential, especially when discussing compensation during the hiring process. One common question that arises is whether it’s appropriate to inquire about a potential candidate’s last drawn salary. While this may seem straightforward, it’s important to understand both the legal and practical considerations to ensure a compliant and fair hiring process.

What the Law Says: Is It Legal to Ask About an Employee’s Last Drawn Salary?

In Singapore, there are no specific laws that directly prohibit employers from asking about a candidate’s last drawn salary. However, the Tripartite Guidelines on Fair Employment Practices (TGFEP) recommend that salary history not be a primary factor in hiring decisions. Instead, employers should focus on the candidate’s skills, qualifications, and potential.

• No Legal Prohibition: Employers can ask about a candidate’s last drawn salary but should avoid relying on it as the primary factor in decision-making.
• Fair Employment Guidelines: The TGFEP urges employers to assess candidates based on their abilities, qualifications, and fit for the role, rather than their previous pay.
• Salary History Pitfalls: Overemphasising a candidate’s last drawn salary can unintentionally reinforce pay disparities or introduce bias into hiring decisions.

Why Should You Avoid Asking About an Employee’s Last Drawn Salary?

While it might seem useful to ask for a candidate’s last drawn salary, there are several compelling reasons to reconsider this practice:

Reinforcing Pay Inequities

• A candidate’s previous salary may not accurately reflect their value or capabilities. Past pay could be influenced by factors unrelated to the candidate’s qualifications or performance.
• Basing salary offers on last drawn salary might lead to underpaying candidates or failing to offer competitive compensation.

Encouraging Fair Hiring Practices

• Relying on salary history as a key factor in hiring decisions can perpetuate existing pay gaps, particularly if the candidate has faced wage disparities in previous jobs due to gender or race.
• Fairness in hiring is essential for creating an inclusive workplace that values talent and equal opportunity.

Focusing on Skills and Potential

• Rather than focusing on a candidate’s last drawn salary, employers should concentrate on evaluating the candidate’s skills, experience, and ability to contribute to the company.
• This approach ensures that you are hiring based on the candidate’s potential to excel in the role, not based on outdated salary history.

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What Are the Alternatives to Asking About an Employee’s Last Drawn Salary?

If you want to maintain fairness while discussing compensation, here are some better alternatives to asking about a candidate’s last drawn salary:

Discuss Salary Expectations

• Ask candidates directly about their expected salary for the role. This shifts the focus to their current expectations and aligns with the role’s market value, rather than what they earned in the past.

Conduct Salary Research

• Research the current market rate for similar roles to ensure you offer competitive compensation. This helps you avoid relying on outdated last drawn salary information.

Assess Value Over History

• Focus on what the candidate brings to the table in terms of skills, qualifications, and experience. Evaluate how they can add value to your company rather than focusing on their last drawn salary.

Summary

While asking about an employee’s last drawn salary in Singapore is not illegal, it is an increasingly discouraged practice due to its potential to reinforce pay inequities and biases in hiring. Employers are encouraged to prioritise fair and transparent hiring by focusing on candidates’ skills, qualifications, and salary expectations rather than their past compensation. By conducting salary research, assessing candidates based on merit, and fostering inclusive hiring practices, businesses can offer competitive pay while ensuring a diverse and equitable workplace.

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