Debt Stress Among Foreign Domestic Helpers: What Employers Can Do to Spot the Signs and Prevent Risks

Recently, two foreign domestic helpers in Shatin and Discovery Bay reportedly took their own lives due to financial stress. These cases have shocked many employers and raised concerns. With over 370,000 foreign domestic helpers working in Hong Kong, many families rely on them to take care of household chores, cook meals, and look after children and the elderly. However, these helpers themselves may be facing serious financial pressures that are easy to overlook. As an employer, you don’t need to act as a counsellor, but noticing early warning signs and understanding the reasons behind financial problems can help prevent serious consequences for both your helper and your household.

Why Do Foreign Domestic Helpers Borrow Money?

In many cases, helpers don’t plan to borrow money, but end up doing so due to different pressures. Common reasons include:

1.      Loan companies or friends encouraging them to borrow: Some loan providers target foreign domestic helpers by offering “easy approval” and “no credit checks,” and may even offer referral rewards to their friends who introduce them.

2.      Urgent family needs: Accidents, illness, school fees for children, or natural disasters etc, often force helpers to urgently find money.

3.      Debt avoidance: Some may borrow with the intention to avoid repayment or may fall into a debt cycle and feel trapped without knowing how to ask for help.

While the loan amount may be small at first, high interest rates and a lack of financial knowledge can quickly make the problem worse.

What Can Employers Do? Three Ways to Prevent Financial Trouble

There are always signs before the situation becomes serious. Employers can take these steps to help spot issues early:

1.      Keep household mail secure / Do not give mailbox keys: Loan companies may require employer proof of address for loan applications. Avoid giving your helper access to the mailbox and keep mail secure to reduce this risk.

2.      Watch for unusual behavior: If your helper suddenly asks for salary in advance, ask you for borrows money, emotionally low, or is constantly distracted on the phone, these may be warning signs. Occasionally check that their passport is still with them as some loan providers may hold it as collateral.

3.      Offer basic financial guidance: Many helpers want to save money but lack the know-how. You can encourage them to attend free financial education workshops or learn from reliable sources online. A simple step like helping them open a savings account may help too.

Related articles: Financial Tips for Foreign Domestic Helpers – Part 1 & Part 2

How Can Domestic Helper Insurance Help?

Insurance can’t solve every problem, but it gives employers a layer of protection. According to the Standard Employment Contract in Hong Kong, employers must cover all medical expenses for their foreign domestic helper. If the helper experiences physical or mental health issues due to emotional stress, the costs of treatment, including hospital stays, consultations, and medication can be high.

Some comprehensive domestic helper insurance plans offer protection for hospitalisation, surgery, and clinical/medical expenses. Some even include daily hospital cash, mental health coverage, or legal liability protection that give employers extra support in unexpected situations.

Conclusion

Your helper may be part of your family’s daily life, but like anyone else, they have emotions, financial stress, and sometimes no one to talk to. Employers don’t need to constantly check in on personal matters, but by staying observant and providing the right insurance, you can reduce risks and protect your household. After all, prevention is always better than dealing with problems too late.

Related product:

California Insurance's latest foreign domestic helper insurance offers the highest coverage in Hong Kong with up to HK$88,000 coverage for hospitalization and surgical expenses. It also provides “New Starter Benefit” that offers probationary protection and “Open Cover” policy reservations for up to 365 days. Learn more or apply now.

The information provided in this article is for general reference only and should not be considered as any form of advice. Our company assumes no responsibility for its use