Beyond the Monthly Salary: Understanding the Total Cost of MDW Employment
When hiring a migrant domestic worker, there are also several ongoing and periodic costs to account for alongside the monthly salary that you may not know of.
What is the monthly levy?
A monthly levy in Singapore is a pricing mechanism aimed at employers to control the number of foreign workers (Work Permit or S Pass holders) they hire. The cost varies by industry, worker skill level, and quota, ranging from roughly $300 to over $950 per worker per month, generally paid through GIRO by the 17th of the following month.
Monthly Levy
- Normal Rate: SGD 300 per month
- Concessionary Rate: SGD 60 per month for households with eligible children, elderly, or persons with disabilities
Insurance and Security Bond
- Medical and Personal Accident Insurance: Policies must be renewed every 26 months to maintain the required minimum coverage.
- Security Bond: A SGD 5,000 bond for non-Malaysian domestic workers, which must be re-established upon contract renewal.
Costs to Note (After 1 to 2 Years of Employment)
- Work Permit Renewal Fee: A standard administrative fee (currently SGD 35) charged by the Ministry of Manpower every two years.
- Home Leave Airfare: Provision of a return air ticket to the home country, typically provided when the helper completes a two-year contract and agrees to renew.
- Paid Home Leave: It is common practice to provide 14 to 15 days of paid leave upon the completion of a two-year contract.
- Medical Examination (6ME): Mandatory medical check-ups every six months to ensure the helper remains fit for employment.
Daily Support and Care
- Rest Day Pay: Compensation provided if the helper works on a scheduled rest day.
- Daily Essentials: Provision of adequate food and appropriate sleeping quarters within the home.
- General Healthcare: Covering medical costs for common illnesses or injuries that occur during employment.