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Published on 5 Sep 2025 by Una Z
For many families in Singapore, hiring a domestic helper provides vital support in managing daily life, caring for children, and looking after elderly family members. But behind every successful placement is a process that can sometimes place an unfair burden on helpers themselves: placement fees.
What is a placement fee?
A placement fee is the cost charged by some agencies or intermediaries to match domestic helpers with employers. Traditionally, this fee is deducted directly from the helper’s salary for several months, leaving them with little to no income at the start of their contract.
For example:
- If a placement fee equals 2–6 months of a helper’s salary, the helper may spend months working without pay just to “repay” the agency.
- This creates financial strain and makes it difficult for helpers to support their families back home during the very period they should be earning and saving.
Why do helpers end up paying these fees?
In many countries, agencies charge helpers instead of employers for recruitment costs, training, or processing fees. This is often presented as the “normal” way to get a job abroad.
Unfortunately, this practice puts helpers at a disadvantage:
- They may feel pressured to accept debt just to secure employment.
- They often have little transparency about where the money goes.
- They risk being trapped in a cycle of financial dependency, where saving money or achieving long-term goals becomes nearly impossible.
Placement fees have long been part of the domestic helper hiring process, often justified as covering recruitment and training costs. However, they also raise important concerns about fairness, transparency, and the financial well-being of helpers who may begin their contracts already in debt.
Ultimately, whether or not placement fees should exist depends on how they are structured and who bears the cost. What remains clear is that a fair system must protect helpers from financial exploitation while ensuring employers have confidence in the hiring process.
You might be interested in:
Staying Safe Online: Tips for Domestic Helpers to Protect Your Privacy
Avoiding Scams and Bad Loans: Financial Safety for Helpers
How to Create a Monthly Budget as a Domestic Helper
How to Apply as a Helper Online
What to Do If You're Struggling to Understand Instructions as a Helper in Singapore
For many families in Singapore, hiring a domestic helper provides vital support in managing daily life, caring for children, and looking after elderly family members. But behind every successful placement is a process that can sometimes place an unfair burden on helpers themselves: placement fees.
What is a placement fee?
A placement fee is the cost charged by some agencies or intermediaries to match domestic helpers with employers. Traditionally, this fee is deducted directly from the helper’s salary for several months, leaving them with little to no income at the start of their contract.
For example:
- If a placement fee equals 2–6 months of a helper’s salary, the helper may spend months working without pay just to “repay” the agency.
- This creates financial strain and makes it difficult for helpers to support their families back home during the very period they should be earning and saving.
Why do helpers end up paying these fees?
In many countries, agencies charge helpers instead of employers for recruitment costs, training, or processing fees. This is often presented as the “normal” way to get a job abroad.
Unfortunately, this practice puts helpers at a disadvantage:
- They may feel pressured to accept debt just to secure employment.
- They often have little transparency about where the money goes.
- They risk being trapped in a cycle of financial dependency, where saving money or achieving long-term goals becomes nearly impossible.
Placement fees have long been part of the domestic helper hiring process, often justified as covering recruitment and training costs. However, they also raise important concerns about fairness, transparency, and the financial well-being of helpers who may begin their contracts already in debt.
Ultimately, whether or not placement fees should exist depends on how they are structured and who bears the cost. What remains clear is that a fair system must protect helpers from financial exploitation while ensuring employers have confidence in the hiring process.
You might be interested in:
Staying Safe Online: Tips for Domestic Helpers to Protect Your Privacy
Avoiding Scams and Bad Loans: Financial Safety for Helpers
How to Create a Monthly Budget as a Domestic Helper
How to Apply as a Helper Online
What to Do If You're Struggling to Understand Instructions as a Helper in Singapore