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Published on 18 Mar 2024 by Diane P.
When employing a foreign domestic worker (FDW) in Singapore, understanding the financial responsibilities, including the helper levy, is crucial. Many employers ask, "How much is the maid levy in Singapore?" and seek information on how to manage these payments efficiently. Knowing how to pay the maid levy and when you might qualify for an FDW levy waiver can significantly impact your budgeting. For those who qualify, the maid levy waiver can offer financial relief, making it important to stay informed about the process. In this guide, we'll cover everything you need to know about the domestic helper levy, including how to pay the helper levy and navigate any waivers that may apply.
What is the Government Levy?
Hiring a domestic helper can be a great help for families in Singapore, but it's essential to understand the costs involved, including the government levy. The government levy is a monthly fee that employers must pay for each FDW they hire in Singapore. The maid levy is designed to regulate the number of foreign workers in the country and encourage employers to hire local workers. It also helps to cover the administrative costs of managing the foreign worker program.
How Much is Maid Levy in Singapore?
The amount of the government levy depends on whether the employer qualifies for the concessionary levy or the normal levy. The domestic worker levy rate is as follows:
Normal Levy
For employers who do not qualify for the concessionary levy, the normal levy rate is $300 per month. The daily maid levy rate only applies to helpers 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.
Concessionary Levy
Employers who meet certain criteria, such as having a young child, elderly person, or person with a disability in the household, may qualify for the concessionary levy. The concessionary levy is $60 per month.
Who can qualify?
As an employer, you can qualify for levy concession if you live with any of the following eligible person who is a Singapore citizen:
- Young child below 16 years old.
- Elderly person who is at least 67 years old.
- Person with disabilities (PWD) – Must be certified by Singapore-registered doctor to require help with at least 1 activity of daily living (ADL), such as showering, feeding, dressing or toileting.
The levy concession for 1 helper is granted based on 1 eligible person in the household. It is capped at 2 helpers per household.
Maid Levy for Elderly?
In Singapore, the government provides a concessionary maid levy to families that employ a foreign domestic worker (FDW) to care for an elderly family member. This initiative aims to alleviate the financial burden on families and ensure that seniors receive the necessary care and support at home. The concessionary rate is significantly lower than the standard maid levy, allowing eligible households to save on costs.
To qualify for this reduced levy, the elderly family member must be a Singaporean citizen, at least 67 years old, and residing in the same household as the FDW. Additionally, the family must comply with all regulatory requirements set by the Ministry of Manpower (MOM), such as purchasing appropriate maid insurance and ensuring that the FDW receives adequate rest days. By providing financial relief through the maid levy for elderly care, Singapore supports families in their efforts to provide quality care for their aging loved ones.
Auto levy concession for yourself, spouse or child
You do not need to apply for levy concession if:
- You or your spouse is at least 67 years old.
- Your child is below 16 years old.
- It will automatically start:
When you or your spouse turn 67 years old.
- On your child’s date of birth if your child is registered as a Singapore citizen at birth.
- On the date your child was granted Singapore citizenship.
Apply for levy concession
You need to apply for levy concession if the eligible person is one of the persons listed below:
- For family member, relative, or other person needing caregiver assistance from helper, apply here.
- For persons with disability, apply here.
When and how to pay levy?
You must check and pay levy using General Interbank Recurring Order (GIRO).
- If you do not have a GIRO account, you can submit an application to the Ministry of Manpower.
- If you are a new employer with no existing GIRO arrangement, you can pay using PayNow QR in Check and pay levy.
You must check and pay levy for each month by the 17th of the following month. If you are using GIRO, the maid levy for each month will be deducted from your bank account on the 17th of the following month (or the next working day if it falls on a weekend or public holiday).
What are the penalties for not paying levy?
If you do not pay the full levy on time, you may face the following penalties:
- You will be charged a late payment penalty of 2% per month or $20, whichever is higher. Your total late payment penalty will be capped at 30% of the outstanding levy.
- Your helper's Work Permit will be revoked.
- You will not be allowed to apply for or issue a new Work Permit, or renew an existing Work Permit.
- You may face legal action to recover the unpaid levy.
What is a maid waiver levy?
In Singapore, employers of domestic workers need to be aware of the domestic worker levy, which is a financial obligation that supports the local workforce. However, there is a maid levy waiver available for eligible households, which can significantly ease the cost burden associated with hiring a domestic helper.
In conclusion, understanding the intricacies of the foreign domestic worker levy in Singapore is essential for all employers. The domestic worker levy is a mandatory payment that contributes to regulating the employment of foreign domestic workers in the country. Whether you're looking to pay the maid levy or apply for a maid levy concession, it’s important to stay informed about your responsibilities and the available options.
For eligible households, the FDW levy concession can provide significant financial relief. Employers should ensure they are up-to-date on how to check the worker levy and pay the levy for FDW through various methods, including MOM Levy GIRO.
Staying compliant with the MOM domestic worker levy regulations, understanding the FDW levy payment process, and keeping track of the levy Singapore rules are key to managing your helper’s employment effectively. Whether you are applying for a maid levy concession or simply managing your helper levy payment, this guide ensures that you have all the necessary information to navigate the system smoothly. By adhering to the MOM levy FDW guidelines and properly handling the foreign maid levy, you can maintain a hassle-free and compliant employment relationship with your domestic helper.
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When employing a foreign domestic worker (FDW) in Singapore, understanding the financial responsibilities, including the helper levy, is crucial. Many employers ask, "How much is the maid levy in Singapore?" and seek information on how to manage these payments efficiently. Knowing how to pay the maid levy and when you might qualify for an FDW levy waiver can significantly impact your budgeting. For those who qualify, the maid levy waiver can offer financial relief, making it important to stay informed about the process. In this guide, we'll cover everything you need to know about the domestic helper levy, including how to pay the helper levy and navigate any waivers that may apply.
What is the Government Levy?
Hiring a domestic helper can be a great help for families in Singapore, but it's essential to understand the costs involved, including the government levy. The government levy is a monthly fee that employers must pay for each FDW they hire in Singapore. The maid levy is designed to regulate the number of foreign workers in the country and encourage employers to hire local workers. It also helps to cover the administrative costs of managing the foreign worker program.
How Much is Maid Levy in Singapore?
The amount of the government levy depends on whether the employer qualifies for the concessionary levy or the normal levy. The domestic worker levy rate is as follows:
Normal Levy
For employers who do not qualify for the concessionary levy, the normal levy rate is $300 per month. The daily maid levy rate only applies to helpers 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.
Concessionary Levy
Employers who meet certain criteria, such as having a young child, elderly person, or person with a disability in the household, may qualify for the concessionary levy. The concessionary levy is $60 per month.
Who can qualify?
As an employer, you can qualify for levy concession if you live with any of the following eligible person who is a Singapore citizen:
- Young child below 16 years old.
- Elderly person who is at least 67 years old.
- Person with disabilities (PWD) – Must be certified by Singapore-registered doctor to require help with at least 1 activity of daily living (ADL), such as showering, feeding, dressing or toileting.
The levy concession for 1 helper is granted based on 1 eligible person in the household. It is capped at 2 helpers per household.
Maid Levy for Elderly?
In Singapore, the government provides a concessionary maid levy to families that employ a foreign domestic worker (FDW) to care for an elderly family member. This initiative aims to alleviate the financial burden on families and ensure that seniors receive the necessary care and support at home. The concessionary rate is significantly lower than the standard maid levy, allowing eligible households to save on costs.
To qualify for this reduced levy, the elderly family member must be a Singaporean citizen, at least 67 years old, and residing in the same household as the FDW. Additionally, the family must comply with all regulatory requirements set by the Ministry of Manpower (MOM), such as purchasing appropriate maid insurance and ensuring that the FDW receives adequate rest days. By providing financial relief through the maid levy for elderly care, Singapore supports families in their efforts to provide quality care for their aging loved ones.
Auto levy concession for yourself, spouse or child
You do not need to apply for levy concession if:
- You or your spouse is at least 67 years old.
- Your child is below 16 years old.
- It will automatically start:
When you or your spouse turn 67 years old.
- On your child’s date of birth if your child is registered as a Singapore citizen at birth.
- On the date your child was granted Singapore citizenship.
Apply for levy concession
You need to apply for levy concession if the eligible person is one of the persons listed below:
- For family member, relative, or other person needing caregiver assistance from helper, apply here.
- For persons with disability, apply here.
When and how to pay levy?
You must check and pay levy using General Interbank Recurring Order (GIRO).
- If you do not have a GIRO account, you can submit an application to the Ministry of Manpower.
- If you are a new employer with no existing GIRO arrangement, you can pay using PayNow QR in Check and pay levy.
You must check and pay levy for each month by the 17th of the following month. If you are using GIRO, the maid levy for each month will be deducted from your bank account on the 17th of the following month (or the next working day if it falls on a weekend or public holiday).
What are the penalties for not paying levy?
If you do not pay the full levy on time, you may face the following penalties:
- You will be charged a late payment penalty of 2% per month or $20, whichever is higher. Your total late payment penalty will be capped at 30% of the outstanding levy.
- Your helper's Work Permit will be revoked.
- You will not be allowed to apply for or issue a new Work Permit, or renew an existing Work Permit.
- You may face legal action to recover the unpaid levy.
What is a maid waiver levy?
In Singapore, employers of domestic workers need to be aware of the domestic worker levy, which is a financial obligation that supports the local workforce. However, there is a maid levy waiver available for eligible households, which can significantly ease the cost burden associated with hiring a domestic helper.
In conclusion, understanding the intricacies of the foreign domestic worker levy in Singapore is essential for all employers. The domestic worker levy is a mandatory payment that contributes to regulating the employment of foreign domestic workers in the country. Whether you're looking to pay the maid levy or apply for a maid levy concession, it’s important to stay informed about your responsibilities and the available options.
For eligible households, the FDW levy concession can provide significant financial relief. Employers should ensure they are up-to-date on how to check the worker levy and pay the levy for FDW through various methods, including MOM Levy GIRO.
Staying compliant with the MOM domestic worker levy regulations, understanding the FDW levy payment process, and keeping track of the levy Singapore rules are key to managing your helper’s employment effectively. Whether you are applying for a maid levy concession or simply managing your helper levy payment, this guide ensures that you have all the necessary information to navigate the system smoothly. By adhering to the MOM levy FDW guidelines and properly handling the foreign maid levy, you can maintain a hassle-free and compliant employment relationship with your domestic helper.