The essential costs of hiring a maid in Singapore

Life in Singapore seems to move much faster for some, especially working parents. Finding a work-life balance can be a struggle without a helping hand.

Hiring help could be one of the best things you can do for your family if you’re married and with kids. However, for those new to this idea, you can simply ask your friends and neighbours who have gone through the steps of hiring a maid. If you aren’t quite sure yet how it costs, give this blog two more minutes to go through some of the essential expenses when hiring your maid.

Apart from the maid’s salary, there are many aspects of hiring a maid which cost as much as the salary itself. Maid agency fee, administration charges etc. It’s good to know all the cost beforehand so you can calculate it in your budget.

1. Maid Insurance: The Ministry of Manpower (MOM) in Singapore requires employers to buy accident insurance for foreign domestic workers. Therefore it is mandatory for employers to buy personal accident and medical insurance. The medical coverage should be a minimum of $ 15,000 and the personal accident cover could be at least S$60,000 per year. All this is done to cover the expenses in case of any mishap with the maid.
2. S$5000 Security Bond: As an employer, if you hire a maid that is not a native of Singapore, then you have to park S$5000 with the Ministry of Manpower, Singapore. All this has to be done before the maid comes to your home for work. The bond amount has to be paid solely by the employer.
3. S$265 Monthly Levy: This additional cost paid to the Singapore government is used to regulate the number of foreign workers in Singapore. You are not required to pay Central Provident Fund (CPF) contributions for your helper, but a monthly levy is necessary.
4. Sending the Maid Back to Their Country: In case the maid suffers serious injury or sickness which prevents them from working, the maid insurance cover will be used to transport them back to their country. No amount from the maid insurance will be paid out in case of obscene and inappropriate behaviour by the maid. Inappropriate behaviour includes drug abuse, stealing, pregnancy without marriage to a Singaporean citizen etc.
5. Re-hiring and Termination Expenses: When the helper is unable to complete their obligations towards the employer due to sickness or death, the employer has to terminate the helper or hire a replacement helper. All the expenses related to this procedure will be borne by the employer. However, if you want to replace the maid because of their bad behaviour, you are not required to pay any expenses. The replacement helper must possess a valid work permit by the Ministry of Manpower, Singapore.
6. Accident of the Helper: When the helper does not perform their obligations towards the employer due to injury or sickness, the employer is entitled to a wage compensation by the maid agency. In case of minor injuries to the maid, the expenses are paid from the insurance.

Employing a maid comes with financial obligations, but when you find the perfect candidate, long term benefits are priceless. Having someone to entrust your family and home to can be a valuable benefit, as you will likely have more time to spend with your loved ones and for yourself too.