New Rules on Domestic Helper Loans (2026)

35% Repayment Cap + Ban on “Reference Contacts”

Loan issues among foreign domestic helpers have long been a concern. Many employers have experienced debt collection calls or even harassment at home, affecting daily family life. Recently, the government announced new regulations starting from August 2026 to better control lending to low-income groups (including most foreign domestic helpers). These measures aim to protect both employers and helpers. The new rules not only limit repayment amounts, but also target the common “reference contact” practice. This is especially good news for employers.

Key Change 1: Repayment Cannot Exceed 35% of Monthly Income

Under the new rule, people earning $6,000 or below per month (including most domestic helpers) can only spend up to 35% of their income on loan repayments.

For example:

If a helper earns $5,100 per month, the maximum repayment is about $1,785 per month.

This helps to:

• Reduce over-borrowing

• Prevent the cycle of “borrowing to repay debt”

• Lower stress caused by financial problems

In the past, many cases showed that heavy debt pressure affected helpers’ work performance and mental health, which also impacted employers indirectly.

Key Change 2: Ban on “Reference Contacts”

Another important change is that lenders can no longer ask borrowers to provide a “reference contact” (such as employer details).

Previously, many helpers were required to give their employer’s phone number or address. If they failed to repay on time, debt collectors would contact the employer directly, causing stress and disturbance.

Under the new rule:

• Employer information cannot be used for debt collection

• Employers are less likely to be dragged into loan issues

• Personal privacy is better protected

This is very important, as many employers previously complained about being treated like guarantors.

Stronger Control on Money Lenders

The government will also strengthen overall regulation of money lenders, starting from August 2026, including:

• Tighter limits on unsecured loans

• Stricter approval and risk assessment

• Higher penalties for rule violations

The goal is to reduce risky lending, especially among low-income groups.

How Can Employers Reduce Risk?

Loan problems do not happen overnight. Employers can take early steps to prevent issues.

You may refer to our previous articles:

• Financial Tips for Foreign Domestic Helpers: Part 1 ; Part 2

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

• Mental Health of Foreign Domestic Helpers | How Employers Can Care and Protect

• Preventing Poor Money Management and Overcharging by Foreign Domestic Helpers: A Practical Guide for Employers

Why Domestic Helper Insurance Is Important

Even with new rules, risks will not disappear completely. For example:

• Stress-related health problems

• Poor work performance

• Sudden resignation or disappearance

A comprehensive domestic helper insurance plan can provide:

• Medical coverage

• Employer liability protection

• Compensation for service interruption

This helps reduce unexpected financial burden for employers.

Conclusion

The new loan rules in 2026 that include the 35% repayment cap and ban on reference contacts, clearly address past problems and are a positive step for employers. However, these measures may not eliminate all risks. Some employers worry that stricter rules could push helpers toward illegal lenders, which may cause even more serious issues.

Therefore, employers should:

• Stay alert

• Pay attention to helpers’ financial and emotional wellbeing

• Put proper insurance protection in place

This is the best way to manage risks effectively and protect your household.

Related Product:

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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