Hiring a domestic helper in Singapore is a decision that can significantly impact family life, providing much-needed support around the home.
However, the decision to hire a domestic helper comes with various financial responsibilities that potential employers must be prepared for.
This detailed guide breaks down the costs involved in hiring a domestic helper, from one-off fees to recurring expenses, and additional considerations to keep in mind.
One-off Costs
Agency Fees
When hiring through an agency, fees can range from SGD 1,000 to SGD 3,000. These fees account for the services provided by the agency, including:
- Screening and Matching: Finding a helper that fits your family's needs.
- Documentation and Paperwork: Handling the administrative aspects of employment.
- Work Permit Application: Assisting with the application and processing of the helper's work permit.
- Free Replacement: Some agencies offer 1-2 replacement. Read their terms and condition for more information.
Work Permit Application and Issuance
The application and issuance of a work permit involve two separate fees, each costing SGD 35.
These mandatory payments to the Ministry of Manpower (MOM) cover:
- Application Fee: Charged at the time of submitting the application.
- Issuance Fee: Charged upon successful approval and issuance of the work permit.
Settling-In Programme
First-time domestic helpers in Singapore are required to complete a Settling-In Programme (SIP), costing SGD 75.
The program aims to:
- Orient Helpers: Introduce them to Singapore's laws and regulations.
- Safety Training: Educate them on safety practices, especially in high-rise living environments.
Security Bond
A security bond of SGD 5,000, required by MOM for non-Malaysian helpers, serves as a guarantee that both employer and helper will abide by the laws and regulations.
The bond can be covered through:
- Insurance Guarantee: Included in your domestic helper insurance package, which is the most common method.
Insurance
Medical and personal accident insurance for the helper costs around SGD 450+ for a standard 26-month coverage.
This insurance ensures that your helper is covered for:
- Medical Care: Hospitalization and surgery expenses.
- Accidental Death or Permanent Disability: Compensation in such cases.
Summary of One Off Cost
Hiring Cost | |
|---|---|
Agency Fee | $800 - $2000 |
WP Fees | $35 x 2 |
Orientation | $75 |
Insurance | From $450 |
6 Months Loan | $2,820 - $3,420 |
Total | $4,275 - $6,075 |
Recurring Costs
Salary
The monthly salary for domestic helpers typically ranges from SGD 450 to SGD 700, influenced by factors such as:
- Nationality and Experience: Different countries have different minimum salary requirements.
- Job Scope: Special skills or responsibilities may command a higher salary.
Levy
The foreign domestic worker levy is a recurring government fee, with a standard rate of SGD 300 or a concessionary rate of SGD 60 for eligible families. The levy:
- Supports Regulatory Costs: Helps cover the administration and management of foreign domestic workers in Singapore.
Living Expenses
Employers should also budget for their helper's daily living expenses, which can include:
- Food and Personal Care: An estimated additional SGD 200 to SGD 300 per month.
- Accommodation: Providing suitable living conditions within your home.
6 Monthly Medication Examination
During your migrant domestic worker's ( MDW ) employment, you must send her for a medical screening every 6 months. This medical examination screens for pregnancy and infectious diseases such as syphilis, HIV and tuberculosis.
Cost varies from $30 onwards depending on clinic charges.
Summary | Monthly Cost |
|---|---|
Salary | $470 - $770 |
Levy | $60 - $300 |
Living Expenses | $200 - $300 |
Total | $730 - $1,370 |
Additional Considerations
- Medical Expenses: While insurance covers major health issues, day-to-day medical expenses might be out-of-pocket.
- Home Leave: Employers are typically responsible for the cost of return airfare for their helper's home leave, as stipulated in the employment contract.
- Replacement Costs: Should your helper leave before her contract ends, there may be costs involved in hiring a replacement, including repeating some of the one-off fees.
Conclusion
Understanding the financial commitment involved in hiring a domestic helper in Singapore is crucial for a successful and harmonious employment relationship.
By budgeting for both the initial and ongoing costs, families can ensure they are well-prepared to welcome a helper into their homes. Remember, the support a domestic helper provides extends beyond mere financial value, contributing significantly to the well-being and harmony of the household.
