Yahoo Finance How Much Does It Really Cost To Hire a Domestic Helper in Singapore
There are many reasons to hire a domestic helper in Singapore. You might be a new family with young children and two working parents. You might be looking for help to take care of your aging parents who may need more attention than you can afford to give them due to your work commitments.
Or may you just need someone to maintain the house and cook your meals while you’re busy earning those big bucks at work. Whatever the reasons, hiring a domestic worker is a relatively straightforward business – at least, when it comes to how much it’ll cost you.
Expected Fees
The following are to be paid directly to the domestic helper’s employment agency:
Agency fee – between $100 and $2,000 (depending on agency)
Settling-in Programme – $75 (if the domestic helper is working in Singapore for the first time)
Work Permit application – $30
Work Permit issuance – $30
Foreign Domestic Worker Levy – $265 (or $60 with concessions – we’ll discuss the eligibility for concessions below) per month
Security deposit – $5,000 (in the form of an insurance or banker’s guarantee)
Medical Insurance coverage – minimum coverage of $15,000
Personal Accident Insurance – minimum coverage of $40,000
Thus the total amount you should expect to pay upfront would be anything between $500 to $2,600, depending on the agency and whether you qualify for the levy concessions.
What are the categories for Foreign Domestic Worker Levy concessions?
Thanks to this year’s Budget announcement, it has become slightly cheaper to hire a domestic helper in Singapore. Currently, there are three categories that allow you to pay the monthly levy of $60 instead of the usual $265. They are:
Category A: If there is a child or grandchild who is a Singapore Citizen, 16 years old or younger and living with you.
Category B: If there is an elderly family member who is a Singapore Citizen, 65 years old and above and living with you.
Category C: If there is a person with disabilities who needs help with at least 1 daily living activity, such as showering, eating, dressing or getting around. Alternatively, if the disability is not so severe, you can apply for a monthly grant to subsidise the levy cost of the domestic helper.
What is the average salary of a domestic helper?
There are many determining factors when determining salary. Experience and relevant training are the main deciding factors. However, a domestic helper’s nationality may also play a part. Earlier this year, Indonesia set the minimum salary of all domestic helpers at a minimum of $500. Around the same time the Philippines government is looking to reduce the number of domestic helpers entering Singapore. With the reduced supply, expect the salaries to increase accordingly.
This is the minimum salary you can expect to pay a new domestic helper, based on their nationality.
Country of Origin | Minimum Salary |
Indonesia | $500 |
Philippines | $500 |
Myanmar | $450 |
Sri Lanka | $400 |
Other miscellaneous costs
Other than the domestic helper’s salary and levy, you are also liable for her food and accommodation, medical expenses, travel expenses (including air ticket home) as well as any emergency expenses like hospitalisation fees, should there be a need for it.
There’s more to it than money
Of course, these are just the basic costs involved in hiring a domestic helper in Singapore. There’s a lot of other factors when deciding if you need a domestic helper than just how much it will cost you. Do consider if you really need a full-time domestic helper to help with your household, or if your needs are less demanding and you can actually suffice with a part-time cleaner or rely on childcare services.
Watch out for an upcoming MoneySmart article about part-time helpers and stay tuned with us on Facebook.
Is the cost of hiring a domestic helper in Singapore too high? We want to hear from you.
The post How Much Does It Really Cost To Hire a Domestic Helper in Singapore appeared first on the MoneySmart blog.
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