If you feel overwhelmed by the demands of everyday life and need some help with household chores like cooking, cleaning and minding the children, employing a domestic helper could be the answer.
According to the Ministry of Manpower (MOM), there are currently 286,300 migrant domestic workers in Singapore[1], demonstrating just how many households rely on this type of support.
But before you take the plunge and hire a domestic helper for your own household, it’s essential to understand the financial commitment involved. So, what are the costs of hiring a maid in Singapore? Here’s a breakdown of what you’ll need to pay, including how much their salary will cost you and the agency fees involved.
Domestic Helper Salary
When considering the costs of hiring a domestic helper, one of the biggest long-term expenses you must be prepared for is the maid’s monthly salary.
The average domestic worker salary in Singapore is about $645 a month.[2] However, the actual wages of a domestic helper vary according to nationality and the maid agency being used.
In general, maids’ salaries range from about $400 to over $700 per month.
Here are the approximate starting monthly salaries of domestic helpers from the various countries from which they are commonly recruited:
- Philippines: $600
- Indonesia: $550
- Sri Lanka: $500
- Myanmar: $480
Note that these are just starting salaries. Salaries are typically higher for maids who have prior experience, are fluent in English and/or have specialised skills. An experienced maid can command a salary of over $1,000 a month in Singapore.
Some employers also offer their domestic helpers other financial incentives, such as overtime pay and periodic pay raises. Giving your maid an annual salary increment is a good practice to acknowledge their performance and experience, as well as encourage them to remain in employment with you.
While the increment amount is up to your discretion, do ensure that your helper’s salary complies with the minimum rate set by their home government.
Meals and Accommodation for Maid
Your domestic helper will be living under your roof during their stay in Singapore, and on top of a basic salary, you are also responsible for their accommodation, meals and other living costs.
You should ensure that your maid has a living space conducive for quality rest, as well as a nutritious diet.
Levy for Foreign Domestic Helpers
Aside from salary, employers must pay a monthly foreign worker levy for their maids until their work permit expires or is cancelled. According to the MOM, the levy is imposed in order to regulate the number of foreigners in Singapore.[3]
The monthly levy rate is as follows:
- First Helper: $300
- Subsequent helpers: $450
- Concessionary rate: $60
The concessionary rate is available to select households with a member that falls into one of the following categories:
- Young children: Families with a Singapore citizen in their household who is below the age of 16;
- Elderly: Families with a Singapore citizen in their household who is aged 67 or above;
- Person with disabilities: Families with a person who has a doctor’s certification stating that they would require help with at least one Activity of Daily Living (ADL), such as showering, feeding, dressing or toileting.[4]
Maid Insurance
Your domestic helper’s medical costs, including those incurred for illnesses or injuries on rest days, should be borne by you, rather than drawn from their salary.[1] As such, all employers are required by MOM to ensure that their maids are protected with medical and personal accident insurance.
Based on MOM requirements, coverage for inpatient care and day surgery has to have an annual claim limit of at least $60,000. For personal accident coverage, a sum assured of at least $60,000 per year is required[2].
It is wise to opt for a policy that offers good coverage and goes beyond the minimum requirements stipulated by MOM, for additional protection and benefits. This also helps you to reduce the risks of incurring significant out-of-pocket expenses should your maid fall sick or get injured.
One example of such a policy is HL Assurance’s Maid Protect360 Pro, which fulfils more than what is required by MOM. The policy covers up to $80,000 of hospitalisation and surgical expenses and offers a personal accident benefit of up to $100,000.
In addition, the plan offers perks, such as daily hospital cash benefits and assistance for alternative maid services.
Domestic Helper Work Permit
Your maid will need a Work Permit in order to work and earn a salary in Singapore. The cost of submitting a Work Permit application to the MOM is $35. If approved, the cost of issuance of the Work Permit is another $35.
The Work Permit is valid for a maximum of two years, and expires a month before the expiration of your domestic helper’s passport, or two months before the expiry of the security bond. You must renew the Work Permit before it expires.
Security Bond for a Foreign Domestic Helper
Unless your domestic helper is Malaysian, you are required by the MOM to purchase a maid security bond of $5,000 at a bank or insurance company. This bond cannot be borne by your helper or drawn from their salary.
The most convenient way to discharge this duty is to purchase a maid insurance policy that replaces your liability for the security bond. One example of such a plan is HL Assurance’s Maid Protect360 Pro. The insurer will serve as your guarantor and provide a letter of guarantee to the MOM, freeing you from having to purchase a security bond.
‘
Medical Examinations
Employers are required by the MOM to send their maids for medical examinations every 6 months.
You should budget about $60 to $80 for two medical examinations in a year.
If you opt to use HL Assurance’s Maid Protect360 Pro, you can purchase an add-on that fully covers the cost of six-monthly medical examinations at panel clinics.
Settling-In Programme
If you are hiring a first-time domestic helper, she will need to attend a one-day Settling-in Programme conducted by the MOM within seven days of her arrival in Singapore.
The Settling-in Programme costs $76.40 and must be paid for by the employer.
Employer’s Orientation Programme
If you are a first-time employer of a domestic helper or have changed maids frequently, you will need to attend a 3-hour Employer’s Orientation Programme at least two working days before submitting a Work Permit application.
The course fee is $35.65 if you wish to attend it in English, $40.75 in Mandarin and $60 in Malay or Tamil.
Maid Agency Fees
If you are employing a domestic helper for the first time, you might choose to go through a maid agency. The agency will typically have a pool of recruited maids to choose from.
AlsOne advantage of using an agency is that they will be able to handle most of the paperwork and administrative details pertaining to your helper’s stay in Singapore.
Maid agency fees for new maids typically range from $1,000 to $3,000, and will include work permit application and issuance fees. Be sure to ask what administrative fees are included in the price.
Placement Fee with Maid Agency
If you are using a maid agency, it is likely that you will be asked to pay a placement fee, equivalent to a certain number of months’ worth of your maid’s salary. The typical placement fee is about four to six months’ worth of salary, usually amounting to a price range of $2,000 to $4,000.
This fee is typically paid upfront by the employer, and then repaid by the maid over a period of time through deductions from their salary. The end result is that the placement fee will be borne by the domestic helper.
New VS Transfer Maids in Singapore – Which is Better?
Transfer maids are domestic helpers who have already worked in Singapore. Some employers prefer transfer maids due to their previous work experience, which could make training easier. In addition, as transfer maids are usually already located in Singapore, the potential employer can meet them in person before deciding whether or not to hire them.
However, transfer maids tend to command a higher salary and are also likely to be more aware of their rights, such as their entitlement to rest days. They might also have higher expectations as a result of their working conditions with previous employers.
If you decide to hire a transfer maid, you should budget at least $800 to $1,000 for her salary. She will not need to go through the Settling-in Programme, but other costs such as the levy, Work Permit, maid insurance and security deposit will still need to be paid.
You can source for a transfer maid through a maid agency, in which case the usual agency fees and placement fees will apply.
—
Written by Joanne Poh – 20 December 2024
About the author:
Joanne Poh is a freelance writer specialising in insurance, property and personal finance. She has written content for some of Singapore’s most prominent insurers, banks and fintech startups, as well as channels such as MoneySmart, PropertyGuru and The Straits Times. Her work has been featured on portals such as Yahoo!, MSN, AsiaOne and herworldPLUS. As a writer, her mission is to give readers digestible information that can help them make better decisions.
Source
Malaysia
Hong Kong