Budgeting For A Transfer Maid In Singapore: Cost Explained

Hiring a transfer maid in Singapore can be the fastest option if your household urgently seeks help. It can also be a cost-effective and convenient option for many Singaporean households as the maids are already in the country with approved relevant documentation waiting to be hired by suitable employers. Transfer maids are typically associated with lower overall initial costs as compared to new hires. However, understanding the costs involved and planning your budget is crucial to ensure a smooth and affordable process. In this blog, we will break down the various expenses associated with hiring a transfer maid in Singapore through a maid agency, providing you with a comprehensive guide to budgeting effectively.

What Are The Key Expenses When Hiring A Maid Through A Maid Agency?

When considering hiring a domestic helper through a maid agency, it is important to account for several key expenses. These include the maid’s salary, government fees, insurance, agency fees and other miscellaneous costs. The financial expenses of your household deserve as much attention as the selection process itself. A careful and well-thought-out budget strategy will prevent overspending and reduce your financial burden. Let us delve into each of these components in detail.

Here are the key expenses for hiring a maid through a maid agency:

Maid Salary

The salary of a maid in Singapore varies based on their nationality, experience, qualifications and specific skills such as previous working experience in childcare or elderly care. On average, the monthly salary ranges from SGD 480 to SGD 700. Transfer maids, who have prior experience working in Singapore, often command higher salaries due to their familiarity with local customs and household expectations.

Levy

The government imposes a Foreign Domestic Worker (FDW) levy, which is a monthly fee employers must pay. This is to regulate the number of foreign workers in Singapore. As of 2024, the standard levy is SGD 300 per month. However, households with elderly members, young children, or persons with disabilities may be eligible for a concessionary levy of SGD 60 per month.

Note:

• The daily levy rate only applies to maids who did not complete a full calendar month. The daily levy rate is calculated as follows: (Monthly levy rate x 12) / 365 = rounding up to the nearest cent.
• The concessionary rate applies to families with a young child, elderly member, or person with a disability.
• When you are no longer eligible for levy concession or your number of maids changes, the levy rate may be adjusted.

Insurance and Security Bond

Employers are required to purchase insurance for their maids, covering personal accident insurance and hospitalization. The cost of a standard insurance package ranges from SGD 150 to SGD 300 annually. Additionally, a security bond of SGD 5,000 is required for non-Malaysian FDWs, which is typically covered by the insurance policy.

Living Expenses

Employers must also budget for the maid’s living expenses, including food, toiletries and other necessities. This can amount to approximately SGD 200 to SGD 300 per month.

Agency Fees

This is the fee a maid agency charges for its recruitment and placement services, typically ranging from SGD800.

Training and Medical Expenses

New maids are required to undergo a medical examination upon arrival in Singapore, costing around SGD 80 to SGD 150. Employers are also responsible for the cost of any necessary training, such as the Settling-In Programme (SIP), which is SGD 75.

What Are The Costs Of Hiring A Transfer Maid Through A Maid Agency?

Transfer maids are those who are already working in Singapore and are seeking a new employer. Opting for a transfer maid can save you money and time, as they are already accustomed to living and working in Singapore.

Here are the initial expenses:

Agency Fees

This is the fee that a maid agency charges to facilitate the transfer. These fees typically range from SGD 800 to SGD 2,000, depending on the agency you use. Some agencies offer packages that include paperwork, medical examinations and placement services.

Our agency charges for transfer maids are as follows:

• Agency Fee $888
• Work Permit Application & Issuance Fee $70
• Transport Fee $50
• Processing Fee $188

Insurance and Security Bond

Employers are required to purchase insurance for their maids, covering personal accident insurance and hospitalisation. The cost of a standard insurance package ranges from SGD 150 to SGD 300 annually. Additionally, a security bond of SGD 5,000 is required for non-Malaysian FDWs, which is typically covered by the insurance policy.

Placement Fees

This is also known as maid’s loan. This is the sum of money paid by employers to the agency on behalf of the maids. In return, employers will deduct the maid’s monthly salary until the loan amount is paid in full.

Here are the recurring expenses:

Salary

Employers have to pay their helpers a monthly salary. Transfer maids with previous locat experience generally command more pay. Salary varies from SGD 500 to SGD 700 depending on the maid’s qualifications and skills.

Maid’s Levy

This is imposed by the government to regulate the number of foreign workers in Singapore. As of 2024, the standard levy is SGD 300 per month. However, households with elderly members, young children or persons with disabilities may be eligible for a concessionary levy of SGD 60 per month.

Living Expenses

Employers must also budget for the maid’s living expenses, including food, toiletries and other necessities. This can amount to approximately SGD 200 to SGD 300 per month.

Medical Examinations

All domestic helpers in Singapore need to undergo medical examinations on a half-yearly basis. Depending on the clinic, a medical examination costs around SGD 30 to SGD 75 per visit. If you wish to extend the stay of your helper, she will need to undergo HIV and Tuberculosis medical examinations. These costs are around SGD 30 and SGD 40 respectively.

By considering the above specific expenses, you can better understand the total cost of hiring a transfer maid and budget accordingly.

What Are Some Additional Costs To Consider?

Example of additional costs to consider are:

1. Home Leave Expenses: Employers should also factor in the costs for the maid’s annual leave back to her home country.
2. Bonuses Or Incentives: Performance-related bonuses and year-end incentives are also common.

What Are The Benefits Of Using A Maid Agency When Hiring A Transfer Maid?

Understanding the process of hiring a transfer maid and the benefits of using a reliable maid agency, such as Hire A Maid, to facilitate the transfer is crucial to ensure a smooth transition and avoid unexpected delays or costs.

Here’s a step-by-step overview of the maid transfer process in Singapore:

1. Selection And Agreement: First, select a suitable maid with the help of a reliable maid agency. Once you’ve found a candidate, agree on the terms of employment, including salary and job scope.
2. Work Permit Application: Maid agencies will submit the work permit application online through the Ministry of Manpower (MOM) website.
3. Medical Examination: Maids need to undergo a medical examination to meet the health requirements set by MOM. Maid agencies will submit the medical report along with the work permit application to MOM for approval.
4. Insurance And Security Bond: Maid agencies will submit proof of insurance to MOM as part of the application process.
5. Issuance Of Work Permit: Once MOM approves the application, the maid can then start working with the new employer.
6. Settling-In Programme: If required, the maid agency will help to ensure the maid attends the (SIP) within the stipulated time frame.
7. Finalize Employment Contract: Employer and maid to sign the employment contract outlining the terms and conditions of employment, including salary, rest days and job responsibilities in the presence of an agent.

Are There Any Financial Assistance Or Subsidies?

The Singapore government provides several forms of financial assistance to help reduce the burden on households who need to hire domestic helpers. Each subsidy targets specific needs and comes with particular eligibility criteria.

1. Foreign Domestic Worker Grant (FDWG)

• This grant provides a monthly cash payment of $120 to families hiring foreign domestic workers to care for family members with at least three Activities Of Daily Living (ADLs) dependencies, such as bathing, dressing, feeding, toileting, mobility, and transferring (e.g., from bed to chair).
• To be eligible, the employer must be a Singapore Citizen or Permanent Resident, the household income must not exceed $10,000 per month, or the per capita income must not exceed $2,800 per month.

2. Home Caregiving Grant (HCG)

• The Home Caregiving Grant is a monthly payout of $200 designed to support families who hire maids to care for an elderly person or a person with disabilities. The grant seeks to alleviate the financial burden of long-term care.
• Eligibility for this grant requires the recipient of care to be a Singapore Citizen or Permanent Resident, the need for assistance with at least three ADLs, and an assessment by an MOH-accredited severe disability assessor.

3. Maid Levy Concession

• For households that qualify, the concessionary rate for the foreign domestic worker levy is $60 per month, a significant reduction from the standard rate.
• Eligible households typically include those with a child below the age of 16, a senior citizen aged 67 years and above, or a person with disabilities. The concessionary rate is also extended to households with individuals who need help with at least one ADL.

These subsidies reflect the government’s recognition of the crucial role that domestic helpers play in supporting Singaporean households, especially those with caregiving needs. By availing these grants and concessions, employers can mitigate some of the financial costs associated with hiring and maintaining a transfer maid, enabling a more sustainable approach to domestic help.

Conclusion

Hiring a transfer maid in Singapore involves various financial considerations, from the maid’s salary, government fees to insurance fees and maid agency costs. It can be a tedious process. By engaging the help of a reliable maid agency such as Hire A Maid, employers can save time and be assured that the transfer maid is properly trained, carefully matched and necessary documents are submitted in an orderly manner on your behalf.

Lastly, understanding these costs and with the help and advice of a professional agent, you can work out your budget effectively and ensure a smooth hiring experience. Whether you are hiring a transfer maid or bringing in a new maid from overseas, thorough planning and budgeting will help you manage the costs more efficiently.

At Hire A Maid, we are committed to providing continuous support and advice to help you make the best decisions for your family’s needs. Our maid agency’s goal is to facilitate a harmonious living and working environment for both employers and their helpers in Singapore.

If you are looking for a skilled Myanmar maid or Indonesian maid, do not hesitate to give our dedicated team a call today!