Cost of Hiring a Domestic Helper in Singapore

Managing a household in Singapore's fast-paced environment can be challenging. Domestic helpers provide invaluable support by taking care of daily chores, childcare, eldercare, and other household responsibilities, allowing families to balance work and personal life more effectively. However, hiring a domestic helper involves various costs and obligations that employers must understand thoroughly.

This guide aims to break down each cost component, from base salaries and agency fees to government levies and insurance requirements. Additionally, we will explore strategies to manage and reduce these costs, discuss the differences between hiring part-time and full-time helpers, and outline available government subsidies and grants to support employers financially.

By understanding these aspects, you can make informed decisions that ensure compliance with Singapore's regulations while meeting your household needs efficiently and sustainably.

Types of Domestic Helper Fees

Offering a competitive salary is crucial in attracting and retaining skilled domestic helpers. Below are the types of domestic helper fees employers may need to consider.

Base Salary

The domestic helper’s base salary in Singapore is influenced by several factors. While the country does not set a minimum wage for foreign domestic workers, most sending countries have established their minimum salary requirements. For instance, helpers from the Philippines and Myanmar may have different salary expectations. For helpers with no prior experience, the baseline salary average is more or less SGD 600.     

Factors influencing salary levels include:

1. Nationality: Different countries have established average salary requirements for their citizens working abroad as domestic helpers. Helpers from the Philippines and Indonesia typically earn $600 to $750. These are basic rates set by the respective embassies, and actual wages may be higher depending on experience and skills.​ These guidelines are set by the respective embassies and must be adhered to by employers in Singapore. The salary expectations can vary significantly based on the helper's country of origin.

2. Experience: Helpers with more years of experience typically command higher salaries. Experienced helpers are often more adept at managing household tasks efficiently, require less supervision, and may bring specialised skills such as caregiving or cooking, which add value to your household.

3. Qualification and Skills: Domestic helpers with specific qualifications or training, such as certifications in childcare, eldercare, or culinary arts, may expect higher wages. These specialised skills can be particularly beneficial for households with unique needs, ensuring professional and competent care.

4. Job Scope and Responsibilities: The complexity and volume of tasks assigned to the helper also influence the salary. Helpers responsible for additional duties such as caring for multiple children, managing large households, or attending to elderly family members may warrant higher compensation.

5. Working and Rest Day Arrangement: According to Singapore's Ministry of Manpower (MOM), domestic helpers are entitled at least one rest day per month that cannot be compensated away. 

6. Embassy Wage Mandate: In Singapore, the embassies of certain countries, such as the Philippines and Indonesia, have established minimum salary requirements that employers must adhere to when hiring domestic helpers from those countries. 

Agency Fees

When hiring a domestic helper, many employers choose to engage a maid employment agency to streamline the recruitment and placement process. Agency fees are a one-time expense that covers various services essential for legally and effectively bringing a helper into your household.

​​​​​​Components of Agency Fees

Agency fees can vary widely depending on the services offered and the agency's reputation. Understanding the breakdown of these fees helps you assess their value and make informed decisions. Common components include:

1. Recruitment Services:

• Sourcing and Screening: The agency handles the process of sourcing suitable candidates and conducting initial interviews and background checks to ensure they meet your specific requirements.
• Matching Services: They match the helper’s skills and experience with your household needs for a harmonious employment relationship.

2. Work Permit Application:

• Documentation and Processing: Agencies assist with preparing and submitting all necessary documents to the MOM for the helper's work permit application, ensuring compliance with all legal requirements.
• Follow-up Services: They monitor the application, resolve issues, and ensure timely approval.

3. Pre-Employment Medical Examination:

• Health Screening: Agencies often arrange for the helper's mandatory medical examination to confirm fitness for employment, covering tests for infectious diseases and general health assessments.
• Report Handling: They manage the collection and submission of medical reports for the work permit.

4. Training and Orientation:

• Skills Training: Some agencies provide training programs to equip helpers with essential skills such as housekeeping, cooking, childcare, and eldercare.
• Cultural Orientation: Training may also include orientation to Singapore’s culture and norms.

5. Settling-In Programme (SIP):

• Mandatory Course: First-time helpers in Singapore are required to attend the SIP, which educates them on safety measures, employment rights, and responsibilities.
• Arrangement and Fees: Agencies coordinate the helper’s SIP enrollment and payment.

6. Transportation and Accommodation:

• Logistics Management: Agencies handle the helper's transportation from her home country to Singapore and provide temporary accommodation upon arrival until she moves into your household.
• Costs Coverage: These expenses are usually included in the agency fees.

7. Insurance and Security Bond Arrangement:

• Policy Procurement: Agencies assist in arranging the mandatory insurance and security bonds required by MOM.
• Documentation: They manage all paperwork and submissions related to insurance and bonds.

Comparing and Choosing Agencies

Selecting the right agency is crucial for a smooth and hassle-free hiring process. Consider the following factors when comparing agencies:

1. Transparency of Fees:

• Detailed Breakdown: Choose agencies that provide a clear and detailed breakdown of all fees and services included, helping you understand exactly what you are paying for.
• Avoiding Hidden Costs: Ensure there are no undisclosed or unexpected charges by thoroughly reviewing the fee structure and asking for clarification where needed.

2. Agency Reputation and Reviews:

• Track Record: Research the agency’s history, including its successful retention rate, total placement volume, and transfer rate, to gauge its reliability and expertise.
• Customer Feedback: Look for reviews and testimonials from previous clients to understand their experiences and satisfaction levels with the agency's services.

3. Service Quality and Support:

• Comprehensive Services: Choose agencies offering comprehensive services that cover all aspects of the hiring process, including post-placement support.
• Customer Service: Assess the agency's responsiveness, professionalism, and willingness to address your concerns and queries promptly.

4. Replacement Policies:

• Guarantee Period: Check if the agency offers a guarantee period during which you can request a replacement helper at little or no additional cost if the initial placement doesn't work out.
• Replacement Process: Understand the procedures and conditions involved in requesting and processing a replacement to ensure minimal disruption.

5. Accreditation and Compliance:

• MOM Accreditation: Ensure the agency is accredited by MOM and adheres to all regulatory standards and ethical practices.
• Certifications: Look for agencies that hold additional certifications, such as CaseTrust accreditation for fair and transparent practices and AEAS (Association of Employment Agencies Singapore) accreditation, which ensures adherence to professional and ethical standards​.

Employer Responsibilities for Direct Hiring

If an employer opts to hire a domestic helper directly, bypassing an agency, they will need to shoulder several additional costs and responsibilities, including:

1. Processing-Related and Ancillary Fees: 

Employers must handle and pay for all processing-related fees, such as work permit applications, medical check-ups, transportation, and lodging. These are essential to ensure the helper’s legal employment and smooth transition to Singapore.

2. Transportation Costs: 

If your domestic helper is hired from overseas, you will need to cover her airfare to Singapore. Transportation cost can depend based on the time of year and location.

3. Security Bond Requirements: 

Employers are required by MOM to secure a security bond as a financial guarantee that they will fulfil all legal obligations, including paying the helper's salary and covering repatriation costs if necessary. This requirement applies whether or not an agency is involved.

4. Insurance

Employers are required by law to provide medical insurance for domestic helpers, covering essential treatments, and personal accident insurance to protect against serious accidents or injuries.

5. Replacement or Transfer Fees:

If a replacement or transfer is necessary, costs include lodging and transportation while the helper is between employers. Additional fees might apply for medical examinations and agency services if involved. For a direct transfer, employers will need to manage the work permit renewal fees, which consist of a S$35 application fee and a S$35 issuance fee, totaling S$70. Employers are also responsible for ensuring the helper's upkeep until the transfer is complete​.

6. Placement Fees:

Employers may need to pay placement fees, which cover recruitment-related expenses such as background checks and interviews. These costs are typically managed by agencies but become the employer's responsibility in a direct hire.

7. Settling-in Programme (SIP):

Employers must arrange for the helper’s attendance at the mandatory SIP and cover the associated costs, which are required for first-time FDHs in Singapore.

Making an Informed Decision

When deciding between direct hire and using an agency, it is crucial to weigh the costs and responsibilities involved. Take the time to compare multiple agencies, request detailed quotations, and consult with friends or family members who have prior experience hiring domestic helpers. This careful consideration will help you choose the option that best suits your needs and budget effectively.

Domestic Helper Levy

The domestic helper levy is a monthly fee imposed by the Singapore government on employers of foreign domestic workers (FDWs). This levy is set at SGD 300 per month for most employers, serving as a regulatory measure to control the number of FDWs in the country and manage immigration policies. Understanding the levy structure and available concessions is essential for accurate budgeting and compliance with MOM regulations. 

Levy Concessions

Eligible employers can benefit from a reduced levy rate of SGD 60 per month under specific conditions. The concession aims to support families who require additional assistance due to caregiving responsibilities. 

Eligible Criteria for Levy Concession

You may qualify for the levy concession if you meet any of the following conditions:

1. Young Child Scheme:

• Criteria: You have a child who is a Singapore citizen below 16 years old living with you.
• Documentation Required: Birth certificate of the child and proof of citizenship.

2. Aged Person Scheme:

• Criteria: You or your spouse is a Singapore citizen aged 67 years or older living with you.
• Documentation Required: Identification documents proving age and citizenship.

3. Persons with Disabilities Scheme:

• Criteria: You have a family member who is a Singapore citizen with disabilities living with you and requires permanent assistance.
• Documentation Required: A valid functional assessment report certifying the disability and need for care.

Here's an outline of the levy amounts for different types of employers:

Employer Type	Levy Amount (Normal Rate) (SGD/month)	Levy Amount (Concessionary Rate)  (SGD/month)	Eligibility for Concessionary Rate
Singapore Citizen	300	60	Living with a young child below 16 years, an elderly person (67+ years), or a person with disabilities (PWD).
Permanent Residents	300	60	Same as the above. However, the eligible person (child/spouse/parent) must be a Singaporean citizen.
Employment Pass Holders	300	N/A	Not eligible
S Pass Holder	300	N/A	Not eligible
Dependent Pass Holders	300	N/A	Not eligible
Singaporean Citizen (Single Parents)	300	60	Single parents with at least one child below 16 years old qualify under the same criteria as other Singaporean citizens.

Importance of Levy Payment Timeliness

Failure to pay the levy on time can result in penalties, suspension of your helper’s work permit, and other legal consequences. Utilise GIRO arrangements for automatic payments to ensure timely and hassle-free levy payments.

Monitoring Levy Payment Status

Regularly check your levy payment status through MOM's online services to ensure all payments are up-to-date and to address any discrepancies promptly.

Understanding and effectively managing the domestic helper levy is crucial for maintaining compliance and controlling the costs associated with hiring a domestic helper in Singapore. Taking advantage of available levy concessions can lead to substantial savings, making domestic help more affordable for families in need.

Domestic Helper Insurance

Ensuring the well-being and safety of your domestic helper is not only a legal obligation but also a moral responsibility. In Singapore, employers are required by law to purchase specific insurance policies for their domestic helpers. Comprehensive insurance coverage protects both the helper and the employer against unforeseen circumstances and financial burdens.

Mandatory Insurance Requirements

As of the date of this writing, MOM mandates the following two insurance coverages for all employers hiring foreign domestic workers (FDWs): 

• Medical Insurance (MI):
  • For policies starting before 1 July 2023, a minimum coverage of S$15,000 per year is required for inpatient care and day surgery.
  • In addition to the increase in minimum coverage, a co-payment arrangement of up to 25% for claim amounts above $15,000 is introduced. These enhancements provide better safeguards against large medical bills incurred by the domestic helpers and enable employers to choose plans in the market that best meet their needs.
• Personal Accident Insurance 
  • Employers must also provide personal accident insurance with a minimum coverage of S$60,000.
  • This coverage applies to cases of accidental death or permanent disability, offering financial protection to the helper or her beneficiaries in such unfortunate events. 

Did you know? Starting 1^st July 2025, standardised allowable exclusion clauses and age-differentiated premiums for workers above and below 50 will be implemented by insurers. Additionally, insurers will directly reimburse their portion of the hospital bill to the hospital directly once the medical claim is approved. These newly introduced features align with MOM’s stage 2 requirements under the enhanced MI for Work Permit and S Pass Holders.

Choosing the Right Domestic Helper Insurance Plan

Liberty Insurance's MaidCare plan offers comprehensive protection, giving both you and your helper peace of mind.

1. Letter of Guarantee: Provides coverage for a $5,000 security bond required by the Ministry of Manpower.

2. Personal Accident: Offers compensation to the helper or their legal beneficiaries in the event of permanent disablement or death caused by an accident.

3. Outpatient Medical Expenses: Covers medical expenses related to injuries resulting from accidents, including treatments provided by Traditional Chinese Medicine (TCM) practitioners or chiropractors.

4. Hospital & Surgical Expenses: Covers up to $60,000 annually for:

• Day surgeries
• 90 days of post-hospitalisation care

5. Daily Benefit: Provides up to $20 per day for a maximum of 60 days to assist with daily expenses during the helper's hospital stay.

6. Repatriation Expenses: Covers transportation costs to return the helper to their home country if they are deemed medically unfit to continue working as a domestic helper.

7. Wages & Levy Reimbursement: Reimburses employers for pro-rated wages and government levies if the helper is hospitalised.

8. Rehiring Expenses: Covers agency fees incurred by the employer when hiring a replacement helper.

9. Outpatient Kidney Dialysis or Cancer Treatment: Provides coverage for actual outpatient costs related to kidney dialysis or cancer treatment for the helper.

10. Special Grant: Offers financial assistance to the helper's legal beneficiaries in the event of their untimely death.

11. Reimbursement of Indemnity Paid to Insurer: Minimises the employer's liability to the Ministry of Manpower if a security bond breach occurs due to reasons outside the employer's control.

12. Policy Extensions

• Extension A - Helper's Personal Belongings: Covers the loss or damage of the helper's personal belongings within the employer's residence.
• Extension B - Employer and Helper Liability: Protects the employer against legal liabilities arising from the helper's negligence. 

Additional Costs to Consider

Beyond the primary expenses of salary, agency fees, levy, and insurance, several other costs are associated with employing a domestic helper in Singapore. These additional costs encompass daily living expenses, medical needs, transportation, and other miscellaneous costs. Properly accounting for these expenses ensures a realistic and comprehensive budgeting plan.

Living Expenses

You must provide food and accommodation for your domestic helpers. These costs can add up, and it is essential to budget for:

• Food: You will need to supply nutritious meals for your domestic helper, which can vary based on personal preferences and dietary needs.
• Accommodation: If you do not have a spare room, you will need to arrange suitable living accommodations for your domestic helper.

Medical Expenses

You are required to purchase medical insurance for your domestic helpers, which covers comprehensive care including medical and personal accidents. Potential medical costs include the pre-employment medical examination, regular health check-ups, and any additional medical treatments needed during the employment period. Ensuring comprehensive insurance coverage helps manage these costs effectively.

Other Potential Expenses

Facilitating your helper's mobility and personal well-being involves covering certain transportation and personal costs.

Transportation Costs

• Work-Related Travel: If the helper is required to travel for work-related purposes such as grocery shopping, accompanying family members to appointments, or running errands, employers should cover these transportation expenses.
• Estimated Monthly Cost: Your domestic helper's monthly transportation expenses will vary based on the frequency and distance of travel required. It's important to consider these costs when planning for their regular commuting needs.
• Public Transport vs. Private Transport: Public transportation is the most cost-effective option, but in cases where private transport is necessary, costs will be correspondingly higher.  

Other Miscellaneous Expenses

Additional costs can include:

• Training and Development: Employers may choose to invest in training programmes to enhance their domestic helper’s skills and competencies.
• Repatriation Costs: In the event of contract termination, you are responsible for the airfare required to return the domestic helper to their home country.
• Special Occasions: Gifts or bonuses for holidays, birthdays, or other special occasions can be an additional expense

When considering whether to hire a full-time or part-time domestic helper, it is crucial to weigh the financial implications against the benefits.

Full-time domestic helpers offer consistent and comprehensive support, making them ideal for busy households that require daily assistance. However, they come with higher costs and a long-term commitment. On the other hand, part-time domestic helpers provide a cost-effective solution for households with fewer needs. They offer flexibility and lower financial obligations but may not provide the same level of consistent support as full-time helpers.

Ultimately, the choice depends on your household’s specific needs, budget, and willingness to commit to a long-term arrangement.

Cost-saving Tips

Employing a domestic helper involves a significant financial commitment, but there are practical strategies you can implement to manage and reduce these costs without compromising on quality and compliance. Here are some effective cost-saving tips to consider:

• Compare Agency Fees: Shop around to find an agency with reasonable fees and good service. Singapore has many maid agencies, so use online reviews and recommendations to find one that offers good value.
• Levy concessions: Check if you qualify for levy concession, which can lower your monthly payment from SGD 300 to SGD 60. 
• Plan Meals and Essentials: Reduce costs by planning meals and buying non-perishable items in bulk. Utilise local grocery promotions and bulk-buying options to keep food costs down while providing nutritious meals.
• Save on Utilities: Implement energy-saving practices such as using efficient appliances and encouraging conservation habits to reduce electricity and water bills. Adopting these practices can help lower your utility expenses

These strategies can help you effectively manage the costs of hiring and maintaining a domestic helper while ensuring compliance with local regulations.

Are There Any Government Subsidies Available?

When hiring a domestic helper in Singapore, employers can benefit from various government subsidies and financial assistance programs that help alleviate the financial burden. These subsidies are closely related to the domestic helper levy, which has already been discussed in the previous section.

Available Grants and Subsidies for Hiring a Domestic Helper

1. Migrant Domestic Worker (MDW) Levy Concession: This concession reduces the monthly levy to S$60 for eligible households employing an MDW to care for a child, elderly person, or individual with disabilities. To qualify, the care recipients must either be below 16 or above 67 years old or require assistance with at least one Activity of Daily Living (ADL). The care recipient and MDW must live at the same address.
2. Caregivers Training Grant (CTG): This grant provides a subsidy of up to S$200 per care recipient per financial year for caregivers, including domestic helpers, to attend approved training courses. The care recipient must be a Singapore Citizen or PR, aged 65 or older, or have a certified disability. A $10 co-payment is required for each training course.

Grant	Amount of Subsidy	Eligibility Criteria
Migrant Domestic Worker (MDW) Levy Concession	Reduced Levy: S$60/ month	Care recipient must be either: Below 16 years old,   67 years old and above, or Require assistance with at least one ADL. Care recipient and MDW must live at the same address. Care recipient must be a Singapore Citizen or PR
Caregivers Training Grant (CTG)	Up to S$200/ year subsidy	Care recipient must be:  a Singaporean Citizen or PR 65 years or older or Certified with a disability.  Caregiver (including MDW) must enroll in an approved caregiving course with a $10 co-payment per course

By taking advantage of these grants and subsidies, you can significantly reduce the financial burden of hiring a domestic helper. Be sure to understand the eligibility requirements for each program and apply as necessary to benefit from the available financial assistance.

Conclusion

Navigating the costs of hiring a domestic helper in Singapore requires careful consideration and planning. Understanding the full range of expenses—from base salaries and agency fees to government levies and additional costs—can help you manage your budget effectively. By accounting for factors such as nationality, experience, and employment type, you can make an informed decision that aligns with both your financial constraints and household needs.

Additionally, being aware of mandatory insurance requirements and potential cost-saving strategies can further streamline the hiring process. Government grants and subsidies may also provide valuable financial relief, making the overall expense more manageable.

With this comprehensive guide, you are well-equipped to handle the financial aspects of hiring a domestic helper, ensuring that you can provide a supportive and legally compliant environment for your new hire while maintaining control over your budget.

 

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