Written Answer by Minister for Manpower Dr Tan See Leng to PQ on Current Upfront and Monthly Cost to Households for Hiring of Migrant Domestic Workers

NOTICE PAPER NO. 669 OF 2021 FOR THE SITTING ON 13 SEPTEMBER 2021
QUESTION NO. 1652 FOR WRITTEN ANSWER FOR ORAL ANSWER NOT ANSWERED BY END OF QUESTION TIME

MP: Ms Tin Pei Ling 

To ask the Minister for Manpower (a) whether the Ministry has data on the current minimum, median and maximum total upfront cost and monthly cost of hiring (i) a transfer migrant domestic worker and (ii) a new migrant domestic worker entering Singapore respectively; (b) if so, what are the costs; and (c) whether the current costs are sustainable.

Answer

To hire a new migrant domestic worker (MDW) from overseas, an employer incurs upfront costs for the local Stay-Home Notice (SHN) and related COVID-19 tests, service fees charged by the employment agency (EA), as well as other administrative costs such as medical insurance, security bond, cost of the Settling in Programme (SIP), and work permit application fees. Based on our sampling two months ago, the median cost of hiring an MDW was about $7,000, including the loan that the employer extends to an MDW from overseas. The upfront cost of hiring an MDW has increased and this is mainly due to the cost of SHN and related COVID-19 tests that are mandatory. 

We have observed an increase in the monthly salary of MDWs as well. As at end-2019 (pre-COVID), the average monthly salary of MDWs hired from overseas was $570. The average monthly salary was $590 as at end 2020. For transfer MDWs, the average monthly salary was $610 as at end 2019, and $630 as at end 2020.

To help employers manage the SHN cost, MDWs serve their SHN at economy hotels, which cost $1,500 for 14 days compared to $2,000 for other work pass holders in regular hotels. In addition, MDWs have the option to share a room with another MDW during their SHN at $1,000, subject to room availability. MOM considers appeals from Singaporeans to waive the SHN costs on a case-by-case basis, taking into consideration household income and the financial circumstances of the household. MOM also recently announced that when an MDW is transferred to a second employer, the first and second employers may share the SHN and related COVID-19 test costs paid by the first employer. This will help employers who hired MDWs from overseas better manage the costs of hiring an MDW. 

As the global COVID-19 situation has not stabilised, border controls remain necessary to reduce the risks of importing COVID-19 and protect the community. With the limited number of entry permits allowed by the Multi-Ministry Taskforce, MOM is prioritising households with urgent care-giving needs. Households can consider engaging part-time help from companies providing domestic services such as house cleaning. MOM has recently formalised the Household Services Scheme to help in this aspect. Households with caregiving needs can also consider childcare or eldercare facilities, some of which are subsidised to help households with financial difficulties.