Levy for Maid: Your Complete Guide to Understand and Comply

Don't Get Fined! Learn the Ins and Outs of 'Levy for Maid' in Singapore.

So, you’ve hired a Migrant Domestic Worker (MDW) in Singapore, and now you’re diving into the world of foreign worker levies. Don’t worry; we’re here to break it down for you. In this friendly guide, we’ll explore the nitty-gritty of the levy for maids, making it as simple as a cup of tea.

What’s the Deal with the Foreign Worker Levy?

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Let’s start with the basics. The foreign worker levy for maid, or just “levy,” is like a monthly subscription you, as the employer, must pay for your helper. Unlike Central Provident Fund (CPF) contributions, which don’t apply to your helper, this levy is your financial responsibility. The catch? The start date for the levy depends on whether your helper is a newbie or an experienced hand.

Let’s Talk Rates

Image from iStock

Now, let’s get down to brass tacks – the rates. If your helper is a first-timer, you’ll be shelling out $300 each month. That’s about $9.87 a day. But if you’re on your second (or more) round of having a helper, the monthly bill increases to $450, working out to roughly $14.80 a day. There’s also a sweet deal for some folks – the concessionary rate. It’s a cool $60 monthly or $1.98 per day and is available for families with young kids, elderly members, or those with special needs.

When and How to Settle the Bill

Paying the levy isn’t rocket science. You’ll be using the General Interbank Recurring Order (GIRO) system. This means the levy will be automatically deducted from your bank account on the 17th of each month, or the next working day if the 17th falls on a weekend or public holiday. Just remember, keep those funds in your account ready for the big day.

Don’t have a GIRO account yet? No problem! You can go for the PayNow QR option. But use it only if you don’t have a GIRO arrangement in place. You can check your levy bills online via the Check and Pay Levy portal, and you’ll need your trusty Singpass for that.

Watch Out for Penalties

Now, let’s talk consequences. If you miss the levy payment deadline, there’s a price to pay. You’ll be slapped with a late payment penalty of 2% per month or a minimum of $20 (whichever’s higher). It’s capped at 30% of the outstanding levy, but let’s avoid that scenario, shall we? Your helper’s Work Permit could also be in jeopardy, and you won’t be able to apply for new ones or renew the existing permits. Legal action might even come into play to recoup the unpaid levy.

In a Nutshell

So, there you have it, a breezy guide to understanding the levy for maids. It’s all about knowing the rates, how to pay, and the consequences of missing a beat. Stay on top of your game, keep your helper happy, and enjoy a smooth journey in the world of MDWs.

MOM

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Written by

Matt Doctor

lifestyle