Hiring a foreign domestic worker (FDW), often referred to as a maid, comes with responsibilities. One of the key obligations for employers in Singapore is paying the maid levy. This levy is a monthly fee imposed by the Ministry of Manpower (MOM) to regulate the number of FDWs working in Singapore.
If you are employing a helper for the first time, you may be wondering how the maid levy works and how to pay it. In this article, we’ll guide you through the process, step by step.
What is the Maid Levy?
The Foreign Domestic Worker (FDW) levy is a fee that all employers of maids in Singapore must pay. It is not a salary deduction, but rather a government-imposed cost to employ a helper.
The levy ensures that only families who genuinely need assistance hire domestic workers. Employers are responsible for this payment, and failure to do so can lead to penalties or even cancellation of the helper’s work permit.
How Much is the Maid Levy?
The amount you pay depends on whether you qualify for the concessionary levy scheme:
- Standard levy: $300 per month (for each FDW).
- Concessionary levy: $60 per month (available for families with young children, elderly members, or persons with disabilities).
Employers can check their eligibility for the concessionary rate through the MOM website.
Payment Methods for Maid Levy
MOM provides several convenient ways to pay your maid levy:
1. GIRO (Preferred Method)
The levy is automatically deducted from your bank account every month.
Ensures you never miss a payment.
2. AXS Stations / AXS m-Station / AXS e-Station
Pay using NETS, credit cards, or e-wallets at physical AXS kiosks or online.
3. Internet Banking & Mobile Banking
Most major banks in Singapore allow levy payments directly through their online or mobile platforms.
4. SingPost Branches
You can pay over the counter at SingPost branches using cash, NETS, or cheque.
💡 Tip: Setting up GIRO is the safest option to avoid late payment penalties.
When to Pay the Maid Levy
The levy is due every month, typically by the 17th of the following month. For example, the levy for July must be paid by 17 August.
If payment is late:
- A penalty of 2% per month applies.
- MOM may suspend or revoke the maid’s work permit.
- You may not be able to apply for or renew work permits in the future.
Claiming Maid Levy Relief (For Tax)
Working mothers in Singapore can enjoy Foreign Domestic Worker Levy Relief to reduce their taxable income.
You can claim twice the total amount of levy paid in the year, provided you meet the eligibility criteria. This relief is usually claimed automatically when you file your annual tax return.
Resources for Employers
Managing an FDW in Singapore involves more than just paying the levy. From understanding MOM requirements to ensuring proper HR practices, employers benefit from having reliable resources.
Human Dynamics offers professional support and guidance for families employing domestic workers, helping to simplify processes like levy management, employment practices, and compliance with MOM regulations.
Conclusion
Paying the maid levy is a responsibility that every FDW employer must take seriously. By knowing the rates, payment methods, and due dates, you can avoid penalties and ensure smooth employment of your helper.
For additional support and resources, platforms like Human Dynamics provide helpful information to make managing your domestic worker stress-free and compliant.
