Singapore SME worker sent to China for 3 months gets paid only S$16/day as a per diem allowance

SINGAPORE: A Singaporean worker took to social media on Wednesday (Sept 4) to share that he was assigned to work in Shanghai, China, for a three-month stint but was dismayed to discover that his per diem allowance was a scant S$16 per day.

In his post, he explained that the company provided a shared apartment and issued a single-entry work visa, which meant that he was required to stay in Shanghai for the entire duration of his assignment without the option to leave and return.

The worker then voiced his concerns about the allowance, stating that the amount feels extremely low given the cost of living and expenses he will incur while abroad.

He also said that when he approached his employers about the issue, he was merely told that the allowance adhered to company policy.

“I understand there’s no legal requirement for how much a company should pay for a per diem, but is this allowance within a normal range? Is there anything I can do to address this? My company is SME.”

“What company is this? Sounds very dodgy.”

Many people weighed in with their opinions and advice in the comments section. Some suggested that S$16 per day might be unrealistic for Shanghai, a city where the cost of living can rival that of Singapore.

One netizen remarked, “Have they even seen the cost of living in Shanghai? It’s basically similar to SG. $16 is less than what their uni students live on.”

Another commented, “16 is very low and the cost of living in Shanghai is relatively higher than less developed Chinese cities. What company is this? Sounds very dodgy actually to provide a “shared apartment”.

I think legit companies usually provide you your own space/rent a serviced apartment in addition to providing a reasonable stipend.”

Meanwhile, others disagreed and speculated that the worker was not providing the “full picture” of his situation.

One netizen said that the per diem allowance would be alright if his company also allowed him to reimburse everything, including personal meals, laundry, and transportation.

Another netizen weighed in with a pragmatic perspective, acknowledging that while S$16 might seem tight in Shanghai, it’s not entirely unrealistic.

He noted, “In other parts of China, it would buy you quite some nice 3 meals, but Shanghai is more expensive. But it’s not THAT expensive.

Of course, those 3 meals would be local meals, no fancy Ang Moh Western 5* buffet.. but for locals, Shanghai is still quite affordable.. 16 SGD in Singapore buy you 3x Hawker, in Shanghai a bit more than that.

Besides, he wouldn’t get any allowance in Singapore, so if he can get by with 16 SGD/day, it’s literally free lunch.”

A few others recommended that the worker explore alternative options, such as negotiating with his employer for a higher allowance.

They suggested bringing up the 2024 Acceptable Rates published by the Inland Revenue Authority of Singapore (IRAS), which lists China’s recommended per diem allowance as S$90 per day.

One netizen added, “Company policy probably is that amount for all trips, I guess. Just need to argue your case, for example, what’s your daily expenditure there. Need to buy other stuff, too.”

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