How Much Does It Cost to Hire a Domestic Helper in Singapore?

This was originally posted on Planner Bee.

For many people in Singapore, it can be overwhelming to juggle the demands of daily life. This is especially for working adults who have to consider childcare and household chores too.

To alleviate these pressures, many households employ foreign domestic helpers. They provide invaluable support, particularly for young parents and those with elderly family members, by handling routine tasks and caregiving responsibilities.

However, hiring a foreign domestic helper involves various costs that potential employers should be aware of. Understanding these expenses can help you budget effectively and ensure that you comply with legal requirements.

Here is a detailed breakdown of the costs associated with hiring a domestic helper in Singapore.

Initial costs

Agency fees

When hiring a new domestic helper, many employers choose to go through an agency. The agency fee covers the costs of recruiting, screening, and matching a helper to your specific needs. This fee may also cover other costs such as airfare, lodging, transport, documentation, training, processing of employment and medical expenses.

Agency fees can vary significantly depending on the services provided, but they typically range from S$1,000 to S$3,000. If you prefer to save on agency fees, you might want to opt for direct hires or maid transfers. However, you will have to manage the initial miscellaneous costs yourself, and this includes medical expenses, airfare and other relevant expenses.

Settling-In Programme (SIP)

The Settling-In Programme is mandatory for first-time domestic helpers in Singapore. This one-day course aims to educate new arrivals on safety measures, their rights and responsibilities, and adjusting to life in Singapore.

The cost of the SIP is S$75, and it must be completed within three days of the helper’s arrival.

Work permit

Applying for a work permit for your domestic helper is a crucial step in the hiring process. The application fee is S$35, and there is an additional S$35 fee for the issuance of the permit, bringing the total to S$70.

Insurance

Employers must purchase insurance for their domestic helpers. This typically includes personal accident insurance with a minimum coverage of S$60,000 per year and medical insurance with a minimum coverage of S$15,000 per year. Insurance packages can vary, but you can expect to pay around S$300 to S$500 annually.

Security deposit

The Ministry of Manpower (MOM) requires employers to place a security deposit of S$5,000, either in the form of a banker’s guarantee or an insurance bond. This deposit is a safeguard to ensure compliance with the terms of the work permit.

Employer’s Orientation Programme (EOP)

First-time employers of domestic helpers are required to attend the Employer’s Orientation Programme. This course provides essential information about hiring and managing a domestic helper, including legal responsibilities and best practices. The EOP can be taken online or in-person, and the cost is around S$35 to S$60.

Read more: Maid Insurance: What Is It and Why Should You Look Into This

Recurring costs

Salary

The monthly salary of a domestic helper in Singapore varies based on their experience, nationality, and the specific requirements of the employer.

Some employers may choose to pay higher wages for more experienced helpers or those with specialised skills. You may also consider including overtime pay for work beyond the standard hours, bonuses for good performance and/or annual salary increment for prolonged employment.

Levy

Employers must pay a monthly levy to the MOM. The standard levy is S$300 per month, but a concessionary rate of S$60 per month is available for families with young children, elderly members, or persons with disabilities, provided they meet certain criteria.

Living expenses

Employers are responsible for providing their domestic helper with adequate living arrangements, meals, and basic necessities. While the cost of living expenses can vary, it is estimated to be around S$200 to S$300 per month. This includes food, toiletries, and other daily needs.

Additional fees

Training fees

Some employers may choose to invest in additional training for their domestic helper to enhance their skills. This could include courses on cooking, childcare, or eldercare. Training fees vary depending on the programme, but they generally range from S$100 to S$500.

Placement fees

Placement fees are charges incurred by the domestic helper for her placement, and they are usually deducted from her salary over the first few months of employment.

Although the exact amount can vary, placement fees generally range from S$1,000 to S$1,800. It’s important for employers to be transparent about these deductions and to ensure they do not exceed the limits set by the Ministry of Manpower.

Repatriation costs

At the end of the employment contract or if the helper’s services are terminated, the employer is responsible for covering the cost of repatriation to the helper’s home country. This includes the cost of an air ticket, which can range from S$300 to S$500, depending on the destination.

Medical and dental expenses

Employers must bear the cost of their domestic helper’s medical and dental care. This includes regular check-ups, treatments, and any necessary medications.

For instance, domestic helpers are required by law to undergo medical examinations twice a year to screen for pregnancy and infectious diseases such as syphilis (VDRL), HIV and tuberculosis (TB). A basic six-monthly medical examination costs around S$35 (VDRL and pregnancy).

The total annual medical expenses can vary widely but are estimated to be around S$200 to S$500.

Renewal fees

Work permits for domestic helpers need to be renewed periodically, typically every two years. The renewal process incurs a fee of S$35, with an additional S$30 for the issuance of the renewed permit.

Emergency situations

In case of emergencies, such as accidents or sudden illnesses, employers might incur additional expenses for medical treatment or hospitalisation. While insurance covers a significant portion of these costs, out-of-pocket expenses can still arise, depending on the situation.

Home leave

Domestic helpers are entitled to home leave during their employment. Employers are responsible for covering the airfare and other related expenses for the helper to visit their home country. The cost of a round-trip ticket can vary but typically ranges from S$300 to S$500. Additionally, some employers may provide their helpers with a bonus or allowance during home leave, which adds to the overall cost.

Here’s a sample breakdown of typical costs incurred in the first year of hiring a new domestic helper through an agency:

Hiring a domestic helper in Singapore is a significant financial commitment, but one that can bring invaluable support and relief to many households

Remember, your domestic helper is not just an employee, but also a vital part of your household. Taking care of them will, in turn, help take care of you and your family.

Read more: Private Nurses or Live-In Caregivers: Cost of Caregiving Services in Singapore