For a lot of us, our domestic helpers play a significant role in our lives. Juggling both our hectic work schedules and family is tough enough, not to mention the household chores waiting for us.
This could be why many Singaporeans turn to domestic helpers to lessen their workload at home. From doing household chores to taking care of our children and parents, domestic helpers no doubt play a large role in our lives.
Rising Costs Yet the Demand for Domestic Helpers Is Still Rising
In the new normal that we are currently living in, hefty sums have been added to the costs of hiring a foreign domestic helper. From the increased administration fees charged by maid agencies to the COVID-19 related added costs, it is inevitable that the amount that potential employers must fork out has skyrocketed.
Despite this, many Singaporeans are still willing to pay the high costs. For some, especially those with elderly parents as well as young children, having a domestic helper is almost a necessity. On the other hand, there are the fortunate ones who can afford to do so to lessen their household chore workload.
If you fall into either of the categories mentioned above, read on to find out how much you will need to pay to hire a foreign domestic helper in Singapore in our new normal living alongside COVID-19.
Here’s What You Have to Pay For in the New Normal
You have probably heard the news about the added fees that you will need to foot when hiring a foreign domestic helper in Singapore. To simplify the process for you, we have compiled the list of costs that you will potentially incur.
The Bare Minimum
Even in pre-covid days, there were basic fees that you had to pay for. The fundamental costs required to hire a foreign domestic helper include and are not limited to the following:
- Security Bond
- Placement Fee
- Insurance
- Administration Fees
- Salary
- Maid levy
- Living Expenses
- Settling-In Programme
- Six-Monthly Medical Exam (6ME)
Security Bond
Prior to your domestic helper’s arrival, you are required by the Ministry of Manpower (MOM) to buy a security bond for your foreign domestic helper. Serving as a pledge to the government should either you, the employer, or your helper break the law or Work Permit terms and conditions, it acts as your insurer’s guarantee.
With the exception of Malaysian workers, employers must purchase and cover fully the cost of a S$5,000 bond from any bank or insurance company.
This security bond will only be discharged once all of the following conditions have been met:
- Cancellation of Work Permit
- Your foreign domestic helper has returned home
- There has been no breach of security bond conditions
Placement Fee
Serving to cover the domestic helper’s cost to work in Singapore, the placement fee is a sum of money paid by the employer to maid agencies. However, should the contract end within six months, the maid agencies are required to refund half of the placement fee to the foreign domestic helper.
| Nationality of Foreign Domestic Worker (FDW) | Placement Fee |
|---|---|
| Indonesian | S$2,000 – S$3,000 |
| Filipino | S$2,000 – S$7,000 |
If you would like to know more about how placement fees will affect you, check out our article on the impact of the Indonesian placement fee on employers.
Insurance
Apart from a security bond, to protect both you and helper, before your domestic helper arrives, you should have bought, and covered fully, the cost of her medical and personal accident insurance.
As mandated by the MOM, employers are required to purchase medical insurance with a minimum coverage of S$15,000 per year for inpatient care and day surgery during the course of the helper’s stay in Singapore.
In addition to medical insurance, employers are also required to purchase personal accident insurance. The requirements for the personal accident insurance coverage are as follows:
- Sum Assured: At least S$60,000 per year
- Covers: Sudden, unforeseen, and unexpected incidents that result in permanent disability or death
- Not contain extra exclusion clauses that are not in the Employment of Foreign Manpower Regulations
Recently announced, the Ministry of Manpower (MOM) will be enhancing the coverage offered for the required medical insurance. To better protect employers who may be tight on cash, there will be an introduction of a co-payment feature for employers and insurers for amounts exceeding S$15,000.
Under this feature, employers will be fully insured for medical expenses up to S$15,000. Thereafter, insurers will cover 75 percent of the amount above S$15,000 with an annual claim limit capped at S$60,000. While this feature will cover more than 99 percent of work permit inpatient and day surgery bills, it is imperative that you read the terms and conditions as every case is unique.
Administration Fees
For most potential employers, you will be hiring your domestic helper through an agency. With the COVID-19 requirements, there is inevitably an increase in administrative work that needs to be done. As such, service fees have risen for the majority of agencies with fees for new maids ranging from S$1,000 to S$3,000 now.
Maid Salary
The most fundamental cost that you will incur is your foreign domestic helper’s salary. With an average salary paid at S$597, you can expect to pay your domestic helper a salary of around such a price. Of course, this would vary greatly depending on their level of experience, the maid agency that you hire your helper from as well as their nationality.
While there is no minimum salary imposed by the Singapore government, their countries have imposed one. Below is a list that compiles the minimum monthly salaries from the following countries.
| Country | Minimum Monthly Salary |
|---|---|
| Myanmar | S$450 |
| Sri Lanka | S$497 |
| Indonesia | S$550 |
| Phillippines | S$570 |
Maid Levy
To regulate the number of helpers that employers hire, employers will have to pay a monthly maid levy.
| Type of levy | Monthly rate | Daily rate |
|---|---|---|
| Normal (1st helper) | $300 | $9.87 |
| Normal (Subsequent helpers) | $450 | $14.80 |
| Concessionary | $60 | $1.98 |
For helpers who do not complete a full calendar month, employers may refer to the daily rate and calculate accordingly.
Understanding that some employers may face financial difficulties, there are levy concessions in place for Singaporean employers who live with the following individuals:
- Young child below the age of 16 years old.
- Elderly person who is at least 67 years old.
- Person with disabilities (PWD) – Must be certified by a Singapore-registered doctor to require help with at least 1 activity of daily living (ADL), such as showering, feeding, dressing, or toileting.
Living Expenses
After all, hiring a domestic helper is one added family member. As such, you will also need to cover her living expenses. From food to basic toiletries to transport, you will need to set aside a sum of money for such expenses.
Below is a table that estimates the cost of your domestic helper’s living expenses which will differ from family to family.
| Category | Cost/month |
|---|---|
| Food and Utilities | S$150 |
| Transport | S$100 |
| Telecommunication | S$19.90 |
| ^ Adapted from here | |
Settling-In Programme (SIP)
For first-time helpers, they are required to attend the Settling-In Programme (SIP) to better assimilate to their new work environment. The SIP will better integrate them into society through covering topics such as Adapting to working and living in Singapore as well as Relationship and stress management.
| When they should attend SIP | Within 3 days of MDW’s completion of SHN, excluding Sunday and public holidays. |
|---|---|
| Duration | 1 day |
| Cost | S$75 (including GST) |
| Language | In the Foreign Domestic Worker’s native language |
Six-Monthly Medical Exam (6ME)
During the course of your domestic helper’s employment, employers are required to send them for medical screenings every six months. Such screenings are for pregnancy, infectious diseases such as syphilis, HIV, and tuberculosis. Do note that 6MEs must all be conducted in clinics.
| Tests | Frequency |
|---|---|
| Pregnancy and Venereal Disease Research Laboratory (VDRL) | Every 6 months |
| HIV | Every 2 years |
| Tuberculosis | Once, upon 2 years of stay in Singapore |
| ^ Taken from here | |
The New Costs in a Covid-Era
At this juncture, you are probably well aware that there are additional costs involved when hiring a foreign domestic helper in a Covid-era. Here is a comprehensive breakdown of everything that you need to pay for.
Pre-Departure
COVID Swab Tests
Prior to their arrival in Singapore, foreign domestic helpers must have taken either a Polymerase Chain Reaction (PCR) test or an Antigen Rapid Test (ART) within 48 hours before departure.
Should your foreign domestic worker take a PCR test, the test must have been taken at a Ministry of Health (MOH) recognised medical facility. On the other hand, should your foreign domestic worker take an ART test instead, the test must have been conducted by a trained professional, be it a medical professional or a Government-recognised trained professional.
| Country | Type of Test | Cost |
|---|---|---|
| Indonesia | PCR | Java and Bali: ~S$26.02 |
| Outside of Java and Bali: ~S$28.38 | ||
| Phillippines | PCR | ~S$67.29 |
| ART | ~S$18.12 | |
| Myanmar | PCR | ~S$ 153.07 |
| ART | ~S$38.27 |
Upon Arrival
Bringing your foreign domestic helper to Singapore is just the beginning. When they have arrived in Singapore, they will need to serve their Stay-Home-Notice (SHN) which will be covered by employers. In addition, employers must also purchase COVID-19 insurance for their domestic helper.
Stay-Home-Notice (SHN)
For foreign domestic workers coming from flights and countries not covered under the Vaccinated Travel Lane (VTL), employers must make arrangements for a 7-day Stay-Home-Notice (SHN) period at an approved facility for foreign domestic workers. For more information on the countries that are eligible for VTL, find out more here.
The SHN is issued under the Infectious Diseases Act requiring travellers to stay in their designated facility for the specified period, which is currently seven days. Employers have the option of either allowing their domestic helper to serve her SHN at approved facilities or at the employer’s house.
During the course of the SHN, you will be eligible for a maid levy waiver if your helper serves her SHN from January 2022 to December 2022. Having said that, whether you are required to cover the salary of your foreign domestic helper will depend on her employment status.
If your foreign domestic helper is coming to Singapore for the first time, you will need to cover the cost of her SHN and start paying her only when she reaches your place of residence.
On the other hand, if she is returning back to Singapore and was initially working for you, you will need to cover her salary during the seven days that she spends serving her SHN. However, the cost of the SHN can be shared between the domestic helper and yourself according to the mutual agreement that has been made.
The estimated cost of SHN should you decide to allow your helper to serve her SHN at a designated facility is as follows.
| Room Type | Cost |
|---|---|
| Single adult to a room | S$1,015 per person for accommodation and food. |
| Two adults to a room | S$665 per person for accommodation and food. |
| ^ Taken from safetravel.ica.gov.sg/health/shn | |
COVID-19 Swab Tests
When your domestic helper is required to take the COVID-19 swab tests will depend on whether she travels under the VTL.
As of March 2022, the VTL eligibility and requirements include
- Arriving from Active VTL (Air) Countries / Regions (Indonesia, the Phillippines, Hong Kong, Malaysia, and more)
- Fully vaccinated (For the definition of fully vaccinated, click here)
- Hold an accepted proof of vaccination
- Arrive in Singapore on a designated VTL flight
For more information regarding the eligibility requirements of travelling under the VTL, visit the Immigrations & Checkpoints Authority (ICA) website.
For helpers under the VTL, they will need to take an unsupervised self-administered ART test within 24 hours of arriving in Singapore and submit the results at sync.gov.sg. On average, the cost of one ART test kit in Singapore is S$6.
For those who do not fall under the VTL category, towards the end of the seven days serving SHN, they will be required to take a mandatory PCR test. The cost of this test will be covered by employers. On average, the cost of a PCR test in Singapore is around S$125.
In the case where your helper is returning to Singapore, it is not mandatory that employers bear the full cost of the COVID-19 swab tests. Instead, employers and their domestic helpers are encouraged to come to a mutual agreement on the cost delegation.
COVID-19 Maid Insurance
Announced by the Singapore government, from 1 January 2021, employers are required to purchase COVID-19 medical insurance for their foreign domestic helpers before they arrive in Singapore.
The COVID-19 medical insurance must offer minimum coverage of S$10,000 for medical expenses if your helper develops COVID-19 symptoms or test positive during the first 14 days upon arrival in Singapore.
What If Your Domestic Helper develops COVID-19 symptoms?
In the unfortunate event that your domestic helper develops COVID-19 symptoms and eventually tests positive for COVID-19, the insurance that you have paid for will cover the medical costs, up to the stated limit. But, what’s next?
Fret not as we have answered the most important question, what you will be exempted from paying.
What Will You Be Exempted From Paying?
The good news is that should your domestic helper test positive for COVID-19 from the PCR test, you will be eligible for a maid levy waiver. There is no application procedure but instead, the waiver will be automatically processed in the next month following the end of the isolation period.
As such, during this period, you will be able to cut the costs of having a domestic helper.
How You Can Reduce the Costs: Find the Right Insurer
In case the price of hiring a domestic helper scares you a little, we’ve got you covered. A simple way to reduce the cost is to find the right insurer. As medical and COVD-19 insurance form the bulk of the costs, finding the right insurer that covers her needs at a low cost can greatly reduce the cost of hiring your helper.
Don’t Just Look at the Costs
While finding a plan that does not require you to break the bank may sound attractive, it is key that the plan offers reasonable coverage. This is to prevent you from having to pay even more in the event that the coverage offered is insufficient to cover your domestic helper.
To ensure that the insurer that you have chosen offers the best maid insurance in terms of coverage and price, we have compiled a list of the basic coverage that your insurer should offer and included our top recommendations.
What the Market Offers
Typically, insurers offer maid insurance plans for 14 months as well as 26 months. Mandated by MOM, the purpose of the additional two months is to ensure coverage against unforeseen circumstances in a situation where your helper is unable to leave Singapore even after her work permit expires.
Apart from the government requirements of insurance coverage, we have listed the basic benefits covered in a mid-tier plan for Indonesian helpers that the following insurers provide.
| Income | Etiqa | Insured United | MSIG | FWD | Average | |
|---|---|---|---|---|---|---|
| Premium | S$264.83 | S$282.36 | S$318.33 | S$363.80 | S$422.50 | S$1,361.02 |
| Hospitalisation Expenses | S$15,000 | S$15,000 | S$15,000 | S$30,000 | S$20,000 | S$19,000 |
| Repatriation Fees | S$10,000 | S$10,000 | S$10,000 | S$15,000 | S$10,000 | S$11,000 |
| Wages Compensation | S$20/day | S$30/day | S$20/day (max. 60 days) | S$30/day (max. 45 days) | S$30/day (max. 30 days) | S$26/day |
| Re-hiring Expenses | NA | S$300 | S$300 | S$500 | S$400 | S$375 |
| Alternative Helper Services | S$20/day | $15 per day | NA | S$50/day (max. 45 days) | S$20/day (max. 30 days) | S$26.25/day |
| Liability to Third-Parties | S$25,000 | NA | S$10,000 | S$10,000 | S$4,000 | S$9,800 |
| COVID-19 Add-on Cover | NA | S$15,000 | S$15,000 | NA | S$15,000 | S$15,000 |
| Bond Coverage Add-on | S$5,000 (Excess may apply) |
S$5,000 (Excess may apply) |
S$5,000 (Excess may apply) |
S$5,000 (Excess may apply) |
S$5,000 (Excess may apply) (Automatically included in premium) |
S$5,000 (Excess may apply) |
From the table above, paying more does not mean that you are getting a significantly more amount of coverage.
For instance, comparing Etiqa’s e-Protect Maid Insurance plan and MSIG’s Maid Insurance plan, the additional S$36 will only provide you with additional benefits such as third-party liability. However, for individuals who do not prioritise this benefit, a better choice would be Etiqa’s e-Protect Maid Insurance plan.
Even within the same insurer, choosing the tier of your plan is important too. Take Income’s 26-month maid insurance plan for Indonesian helpers for instance.
| Basic | Standard | |
|---|---|---|
| Premium | S$313.36 | S$324.30 |
| Accidental Death & Permanent Disability | S$60,000 | S$60,000 |
| Outpatient Expenses | S$1,500 | S$2,000 |
| Personal Liability | S$25,000 | S$25,000 |
| Special Grant Due to Death | NA | S$2,000 |
| Expenses if You Stop Employing Your Domestic Worker | NA | S$150 |
| Wages Compensation (Up to 30 Days) | NA | S$20/day |
For about S$11 more per year, you are entitled to significantly more benefits. Evidently, the standard plan will make more sense value-wise. As such, based on your priorities, you should choose the right maid insurance plan for your helper and yourself.
Apart from the default benefits offered, insurers such as Etiqa, Insured United as well as FWD also offer a convenient COVID-19 optional add-on.
Here’s What We Recommend
To help you reduce the amount spent to hire a domestic helper, we have scoured across the insurers and plans currently in the market, and shortlisted a few of our top picks for each category.
Most Value-For-Money: Etiqa e-Protect Maid Insurance
| Premiums & Benefits | Etiqa eProtect Plan A | Basic Tier Avg. |
|---|---|---|
| 26-Month Premium | S$195.72 | S$244.14 |
| 26-Month Premium (No Bond Waiver) | S$231.82 | S$318.32 |
| 14-Month Premium | S$138.42 | S$169.07 |
| 14-Month Premium (No Bond Waiver) | S$130.89 | S$222.23 |
| Hospitalisation/Surgery | S$15,000 | S$15,000 |
| Personal Accident/Death | S$60,000 | S$60,000 |
| Recuperation/day | S$15 | S$15 |
Analyst’s Review:
The cheapest maid insurance for those on a restricted budget is Etiqa’s eProtectMaid Plan A, which costs 195.72 and S$138.42 for 26- and 14-month plans, respectively. Even though these prices are around 40% below the market average, Etiqa’s FDW insurance plans offer a good amount of coverage beyond the basic medical requirements.
This includes a payment benefit for alternative domestic help if your foreign domestic worker gets hospitalised, S$5,000 of liability coverage if your FDW causes accidental harm and up to $250 in termination and re-hiring expenses.
Lastly, there is also coverage for your children, elderly and disabled relatives in the unfortunate event of abuse.
It is worth mentioning that you can purchase Etiqa’s Plan A at an even cheaper price if you don’t want to add the waiver of indemnity option (if you have a Malaysian domestic worker, for instance), making it cost S$231.82. If you purchase the plan on a Friday, you will be able to save an additional 5% off your policy.
Best Value Maid Insurance for Medical Coverage: MSIG MaidPlus Classic
| Premiums & Benefits | MaidPlus Classic | Industry Avg. |
|---|---|---|
| 26-Month Premium | S$333.84 | S$336.24 |
| Value ($Insured/Premium) | 1.27 | 1.00 |
| Hospitalisation/Surgery | S$30,000 | S$19,913 |
| Personal Accident | S$60,000 | S$60,500 |
| 3rd Party Liability | S$5,000 | S$13,135 |
| Wage Reimbursement (annual) | S$1,350 | S$1,090 |
| Temporary Help (annual) | S$2,250 | S$853 |
Analyst’s Review:
MSIG’s MaidPlus Classic is a great option for people looking for above average medical coverage.
It’s also a high value plan—for a premium that hovers around the industry average, your hospitalisation benefit will be 55% above average and you’ll have worldwide emergency medical and surgical expenses, S$2,000 of medical expense coverage and Dengue fever, accidental dental injury and TCM coverage (up to S$100 each).
MSIG also provides a pro-rated payout for A wards and private hospitals, which can be helpful if you want your domestic worker to use your doctor.
MSIG also offers a wide variety of peace of mind coverage, including termination expenses, domestic worker belongings damage, re-hiring expenses and repatriation. With the exception of your worker’s belongings coverage and the 3rd party liability benefit, MaidPlus Classic benefits are well above the industry average. However, please note that this plan only provides 26-month plan options.
Comprehensive Coverage: FWD Maid Insurance
PROMO: Qualifying customers get up to 25% discount with the promo code BESTMAID
Coverage and Benefits:
| Premiums & Benefits | FWD Exclusive | Top-Tier Avg. |
|---|---|---|
| 26-Month Premium | S$315.30 | S$388.52 |
| Value ($Insured/Premium) | 0.85 | 1.06 |
| Hospitalisation/Surgical | S$25,000 | S$27,308 |
| Outpatient Accident | S$3,000 | S$4,500 |
| Ambulance Sub-limit | S$300 | S$100 |
| 3rd Party Liability | S$5,000 | S$17,750 |
| FDW’s Personal Belongings | S$500 | S$1,133 |
Analyst’s Review:
For those who want coverage for almost any event possible, FWD’s Exclusive Maid Insurance policy is an optimal choice.
FWD balances exceptional coverage for your foreign domestic helper and your home with temporary help coverage, recuperation benefits for your maid’s stay in the hospital, outpatient expenses, wage reimbursement, and a variety of liability coverages.
Furthermore, their ambulance coverage is higher than the market average, dengue fever treatment is fully covered, and you can add up to S$30,000 in additional medical coverage.
Additionally, FWD offers add-ons for protection against fire, burglary and theft by your FDW for S$28, daily maid allowance if she is hospitalised, and outpatient medical expenses to see a doctor. These add-ons will mainly be a better option for those with a flexible budget, as they can quickly increase your total price by as much as $118.
Lastly, FWD also offers up to S$25,000 of hospitalisation coverage in the event your domestic helper gets diagnosed with COVID-19, a great peace of mind benefit during the current climate.
For more information on the best maid insurance, check out our comprehensive analysis on domestic helper insurance in Singapore!
Moving Forward
Image source: iStock
It is inevitable that the cost of hiring a domestic helper will rise, and may rise again, in the future. However, focusing on what we can do to mitigate the damage that it will cost us, we can cut such costs by simply finding the best insurer. Finding the right plan that will be able to offer the coverage that you are looking for alongside a reasonable price tag will be key in curbing this issue.
Despite the rise in prices, demand for domestic helpers is still relatively high, reflecting how indispensable they are in our lives. Thus, it is only right that we protect them with the best helper insurance! Find the best plan out there for yourself here.
This article was first published on ValueChampion and republished on theAsianparent with permission.
This article was first published on Value Champion and was republished on theAsianparent with permission.