Is there a better way to pay a helper instead of cash?

[penguinsix]

Like many I gather I just pay our helper every month in cash. But after listening to her tales of what it takes to get the money back to her home, I was wondering if there might be a better way.

She converts it to Philippine Pesos she gets a rather poor rate from the money changers. There is then a fee to send it back to the Philippines, and the bank back their even charges her fees to receive or spend the money.

Has anyone found a better way? I was thinking of doing a conversion with my bank (which has a better rate) and then maybe sending her a wire or something to her account down there, or maybe even paying her cash in PHPeso, but was wondering what other people do? Paypal fees looked too high also. Has anyone found a better way?

 

[fafreak]

I'll admit I've never thought of this. I do know that when I've taken my helpers to the US or when a US visitor leaves them a bit extra in US dollars, they are super happy. Maybe pay USD or currency? Another idea is to pay a few months in advance / pay quarterly so she does fewer transactions a year.

 

[carang]

i would not recommend quarterly payment... (1) she couldn't wait for so long to receive payment (2) you are supposed to pay within 7 days of the pay period according to the labour dept.... so, the contracts are set out as monthly, you don't have much choice, if you want to remain legal and (3) if you did do quarterly, you couldn't do it after the work was completed (illegal), so you would have to pay in advance.... really, not a great idea.

 

[fafreak]

Carang - agreed, not ideal but if you have a helper you trust and you care enough for, I would imagine prepaying a few months wouldn't be that awful. In any case, I spoke with my helper who suggested using "Frankies" or "Czerina" in worldwide house as they have the lowest rates of approximately HK$24 per transaction with no further fees to the recipient and slightly better exchange rates than other options such as western union. She also mentioned some SMS method that might cost even less but she hasn't used it herself.

 

[Newbie_hk]

Penguinsix, that sounds more complicated than it should be. I agree with Fafreak. "frankie" & "czarina" offer a one off transaction fee & that's it. I would imagine money remittance is a very competitive business here since almost every single helper sends money back home so your helper won't be short of finding the cheapest, lowest & most convenient rate.*
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[miran]

my helper uses "frankie" - she gives them hkd and her family can collect hkd instantly. the charges are quite low as well. i have once transferred for her, so know this for a fact.

 

[penguinsix]

My helper actually used 'frankie' but wasn't too pleased with the conversion rate. The fees weren't bad as others mentioned, but the rate wasn't as good as what I was seeing in my bank options. I'll have to double check next month and see which is better.

 

[Roshna]

Hi all,

We pay our helper in cash.

She takes the HKD to "LBC" (3rd fl, Worldwide) or "BTI" (2nd Fl. WWH) who she says has the best conversion rates. Her family receives the PHP (Phil Peso) equivalent in a matter of hours in their province. The other reasonable one is DBP. I've used these all personally, they're safe, the money gets there. Their cable charges are minimal. It is best to avoid Sundays, the queues are long and the exchange rate all over the bldg. are slightly worse because they know the helpers have no choice.

If she opens a bank account in the Phil and the amount gets sent from the bank here (one of the ones within WWH) to the branch in Phil., I think it's even lower in sending charges. In any case, these people in WWH are still the most efficient and cost-effective way to send money to Phil. (except Western Union, in my opinion, expensive.)

You have to know that no matter which currency you convert to, its subject to market fluctuations. HKD to USD is pegged so we dont feel big differences but any currency you convert to PHP, you will sometimes see big difference within a week!

That's my two cents worth!