Can maid insurance help you save money in the long run?

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According to the Ministry of Manpower, there are 246,300 foreign domestic workers working in Singapore as of January 2022, comprising almost 20.5 per cent of the foreign workforce in the country. Not only that, as the demand for foreign domestic workers grows, their bargaining power also has been growing as well, translating into higher salaries and better protection through comprehensive...

Typically, you can expect to spend another $1,200 per month on various things like salary, insurance and living expenses. Usually, a FDW's salary is pegged to her nationality with certain countries stipulating a minimum monthly salary for hiring FDWs from them.

Also, Singaporeans who live with an elderly person, a child or a person with special needs can apply for a concessional rate of FDW levy at $60 per month in case, which will reduce your cost to $1,000 per month and $12,000 per annum.Maid insurance is mandatory when you hire a foreign domestic worker in Singapore, and to many, this might seem like an addition financial burden that raises the cost of hiring domestic help even higher than it already is.

If you choose your insurance policy well, you will be covered for all sorts of possible unforeseen circumstances that might take place in the future – such as your domestic helper going missing, or even the termination and re-contracting costs that you will incur if you choose to switch helpers for any reason.

Local costs of living have definitely been rising amidst the Covid-19 pandemic and a myriad of other economic factors, but we’ve analysed all of these costs to estimate a recommended income that would allow your household to comfortably hire a foreign domestic worker.

 

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