Sea, the Singapore-based technology firm, will begin crediting the salaries of its Singapore-based employees into accounts with MariBank, the digital bank it owns, starting with the October payroll cycle. Employees were informed of the change earlier this month through an internal memo, which described the switch as mandatory.
The memo encouraged staff to update their salary crediting details by September 17, offering a S$100 Shopee voucher as an incentive. Those already using MariBank for salary crediting were also eligible for the voucher. Additionally, employees would gain access to preferential rates and promotions on eligible MariBank personal loans, with the company planning to roll out more financial products and employee benefits over time.
Sea operates three primary business units: Garena, focused on digital entertainment; Shopee, its e-commerce platform; and Monee (formerly SeaMoney), its digital payments and financial services arm. The move to centralize salary payments with MariBank aligns with the company’s broader financial technology ambitions.
However, the “mandatory” nature of the memo sparked questions among employees and legal experts about the legality of mandating a specific bank for salary payments. Some employees interpreted the memo as a requirement to open a MariBank account, with implied consequences for refusal.
Despite the wording, the memo included a provision allowing employees with personal reasons to maintain their current salary crediting arrangements. It advised staff facing such circumstances to discuss the matter with their human resources business partner.
Legal analyst Khelvin Xu, director at Covenant Chambers in Singapore, explained that under local law, an employer cannot compel an employee to receive salary payments into a particular bank account unless this is stipulated in the employment contract. Without such a clause, employees have the right to decline switching banks. Employers may propose changes to the terms of employment, but employees can refuse, in which case incentives or negotiations may be necessary.
Xu emphasized that while employers can request the use of a specific bank, employees are not legally obliged to comply. However, should the employer insist, employees must weigh the potential consequences, including strained workplace relations or adverse treatment.
Sea has not publicly commented beyond the internal communications seen by staff. The situation highlights the balance companies face when integrating financial services into their operations and the legal boundaries surrounding payment methods for wages in Singapore.