1 in 5 Singaporean Households employ a foreign domestic worker (FDW), but how much does it cost?
With all standard FDW contracts lasting 2 years, deciding whether to employ a FDW calls for careful planning. In this article, we will go through the various costs that one needs to consider.
One Time Fees:
Even before you can bring a FDW home, there will be costs related to her onboarding, employment and repatriation.
*Airfare are taken from Expedia for flights in Jan 2022 departing from Singapore
Recurring Fees:
Monthly Salary
At an average of $597, the monthly salary is usually the largest recurring cost. But the actual salary you pay, differs from one FDW to another, depending on:
Country of Origin - Certain countries stipulate a minimum monthly salary for their FDW so if you are intending to employ a FDW from the below countries, you will need to pay a minimum salary
To qualify for the concessionary levy, you must be living with either:
A young child below the age of 16 ; or
An elderly person who is at least age 67 ; or
A person with disabilities (PWD)**
**PWD must be certified by a SG-registered doctor, that he/she requires help with at least 1 activity of daily living such as feeding, dressing, showering or toileting.
In addition, married female taxpayers can claim FDW levy relief of 2x Levy paid on 1 FDW.
Compulsory must-haves by MOM guidelines
Living Expenses - Having FDW will add est. $200 to your living expenses/mth.
Total cost of employing a FDW on a 2-year contract (Excld. one time fees):
Alternative to FDW:
At $900/month, the cost of hiring a FDW is as expensive as owning a car. Engaging a part-timer helper can be a more affordable alternative. It costs an average of $240/month^ for a part-time helper to do the general cleaning of your house once a week.
^This does not include any one-time registration/agent fee which can cost $188 or more.
Besides the financial aspect of employing a FDW, there are several non-monetary factors to consider. Because a FDW is essentially a stranger who will immediately be living with you first, before you even get the chance to build a trusting relationship with her.
You might have to lock up your valuables.
You might have to install CCTV at home if you are entrusting them to take care of young children or elderly parents.
Will you be comfortable leaving your FDW alone in your home when you are on holiday with your family?
Ultimately, the decision to hire a FDW depends on affordability, personal comfort, and how much value she can add to you and your family’s quality of life.
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