By Caring Caregivers (19C9594)
In Singapore, the demand for foreign domestic workers (FDW), often referred to as maids or helpers, continues to rise in 2023 due to the country’s growing need for caregivers, maids and helpers, particularly in these sectors: infant care, child care and elderly care. Employers who wish to hire FWDs can expect a range of costs associated with the process. These expenses cover the agency fees, salaries, maid levy, living expenses, rest day arrangements, and potential medical costs. As the ethical and successful placement of FDW becomes increasingly important, understanding these costs is essential for both employers as well as the caregivers. If you’re currently considering hiring a FDW for yourself or your loved ones, this article might help you to understand more about the cost you will need to pay for when hiring a domestic helper in 2023.
Salary
Salary is the most significant monthly recurring cost that you will need to pay. The salary of an FDW depends on factors such as experience, skill set, job scope, and nationality. As of 2023, the monthly salary for younger FDW with no prior experience in Singapore ranges from $550 to $650 on average. For trained or experienced FDW with prior experience working in Singapore or other countries, the average salary would be around $650 – $1100. Ensuring that the salary offered is competitive and fair helps in attracting and retaining skilled caregivers.
Maid Levy
The maid levy, a monthly fee paid to the government, is a significant cost factor in hiring an FDW. In 2023, the levy amount varies depending on the number FDWs employed and whether the employer is eligible for levy concessions. The current maid levy is $300, while the subsequent levy for an additional maid would be $450. The total levy for the first maid would be reduced to $60 if you are qualified for a concessionary levy.
Concessionary rate may applies to you if you have family members (who are Singaporean Citizens) as stated:
- Child(ren) under the age of 16
- Elderly family member aged 67 and above
- Family member(s) who needs assistance with activities of daily living
For those families with the first two factors as stated above, the concessionary levy will automatically apply upon application for a helper.
You are no longer qualified for levy concession if:
- Your child turns 16 years old
- Person in need of care (young child, aged, disabled family members) has passed away
- Person in need of care no longer stays with you
- Person in need of care is no longer a Singaporean citizen
It is essential for you to factor this levy into the overall cost of hiring an FDW.
Living Expenses
You are responsible for providing suitable accommodation, meals, and basic necessities for your FDW which includes transportation, utilities, groceries and any additional costs if your FDW accompanies you on dine outs and family outings. Some employers also pay for items such as telecommunication bills and other leisure activities in which its FDW may use.
Transport: $40/month (if you need the maid to accompany you via public transport)
Grocery: $120/month
Total: $160/month
Creating a nice living environment not only assures the well-being of your maid but it also contributes to a positive relationship between you and your maid for them to better care for your loved ones.
Rest Day Arrangements
In 2023, the Ministry of Manpower (MOM) implemented a new policy in which the employers are legally obligated to provide at least one mandatory rest day a month. If your maid opts to work on their rest day, you should agree on compensating the FDW with one day’s salary or replacement days taken within the same month. However, with the new policy in place, one off day a month is mandatory, with the rest being able to be compensated via overtime salary under MOM’s salary regulations.
Overtime salary is calculated as such: (FDW Salary / 26 Days)
Assuming you paid your FDW $580 every month for a new helper who has never worked in Singapore before, the two days additional working days would cost around $22.31 * 2 = $44.62$
The breakdown would be as such:
Overtime Salary = ($580/26)
= $22.30769
~ $22.31
Therefore, you should consider the implication of rest day arrangements on the overall costs.
Medical Cost
By MOM regulations under the Employment of Foreign Manpower Act, you must provide medical care for your maid and caregivers, which includes charges for diseases, injuries, as well as medical check ups. MOM has mandated employers to obtain personal accident and medical insurance for their FDW before they arrive in Singapore and during their stay in Singapore. The minimum necessary medical insurance coverage has increased from $15,000 to $60,000 per year on July 1, 2023. This enhancement will better protect employers from high unexpected medical expenditures incurred by their FDW. As an employer, you are also required to send your FDW for a six-monthly examination (6ME). A basic 6ME can range between $60 and $80 per year.
Maid Agency Fees
Maid agencies are essential in matching you with suitable FDWs. You must bear the costs of hiring these agencies, which cover the recruitment, screening, matching processes, as well as expenses such as insurance, flights, work permit application fees and accommodation. Many maid agencies may require you to pay an upfront placement fee or advanced loan of $1,000 – $ 3,000 when employing an FDW. This price is usually equivalent to a variety ranging from 4 – 6 month’s salary for your FDW and is intended to cover the administrative costs of finding them a job, training them and their medical check up. Many FDWs were in debt as a result of being taken advantage of by employment agencies and training institutions that charged them illegally excessive fees. They have no choice but to take out a loan to support their family or to cover unexpected expenses. As a result, many employers are hesitant to hire a debt-ridden FDW.
Charges from some agencies often vary from $5000 to 7000 in total and must be paid in advance. This includes agency fee, salary deductions or advanced loan that cost around $2000 to 3000. If prospective FDWs fail to continue to work for their current employer and depart within six months, the cost associated with salary deduction will be adjusted but not refunded. The employer will have the option of paying a less placement fee for a new FDW by using the remaining salary deductions. However, at Caring Caregivers, we will only charge the employer around $3100 in total; agency fee, third party cost around $1600, and processing fee, training and placement fee around $1500.
The Indonesian government has implemented a “zero placement fee” policy beginning January 1, 2021. This policy enables Indonesian domestic workers to come to Singapore without incurring debt. To ensure an ethical and effective match, it is critical to carefully evaluate agency options and the services they offer. This does not mean that the helper is free of responsibilities and can go home anytime they want. Our agency focuses on selecting the right workers and conducting legal due diligence to filter out helpers.
Hiring a FDW in Singapore in 2023 involves a range that employers must consider. From agencies to salary, maid levies, living expenses, rest day arrangements, and medical costs, each factor contributes to the overall financial commitment. By understanding these costs and responsibilities, you can make informed decisions and ensure a positive and supportive environment for your FDW.
In order to help you in the hiring maid process, we, Caring Caregivers , an employment agency of caregiving and helper services, will assist in matching you with our ethically recruited Indonesian caregiver and helpers. We were among the first few to offer ethical or no placement fee placement systems. Our thorough training program qualifies our caregivers and helpers to care for your loved ones. If you are currently looking for a maid or want to consult and understand more about hiring a maid, please contact us at Caring Caregivers(Employment Agency License: R19C9594) or WhatsApp Michael +65 83287881 (Employment Agency Personnel License No: R1984358).
