Singapore’s New Rule Means a Bigger Wallet for Hiring Indonesian Helpers
What the Change Means for Everyday Parents
Starting next month, employers in Singapore will have to foot the full cost of the placement fee that new foreign domestic workers (FDWs) from Indonesia bring with them. That one‑time expense—covering travel, accommodation, medical checks and other logistics—used to be paid by the worker and later clawed back from her salary.
For many, like 52‑year‑old sales manager Lynda Lee, the rule adds a fresh blow that could cost up to $3,000 on its own. “It already costs so much to hire a new maid, and this extra fee is a huge hurdle,” she says. With two kids, an 84‑year‑old mother‑in‑law, and a growing household, Lynda is already thinking of grabbing a helper from another country.
How the Placement Fee Works Now
- Previously, the fee was deducted from the maid’s wages over a span of months—often nine to twelve.
- Under the new “zero placement fee” policy, employers must pay the fee upfront before the FDW arrives.
- Average placement cost: $2,000 (but can climb to $3,000).
- Most Indonesian FDWs in Singapore have a monthly wage of about $550, while Filipino and Myanmar helpers earn $570 and $450, respectively.
“A Two‑Way Knife” in the Eyes of the Industry
President of the Association of Employment Agencies, K. Jayaprema, warned that the new policy could backfire. “If a FDW leaves a month or two after the employer pays the fee, the employer has no recourse,” she said. This could lead to a surge of cheaper helpers from neighboring nations like Myanmar.
Meanwhile, seasoned FDW Rini Supriyati—who began working in Singapore 11 years ago—recalls how the fee was deducted from her wages for nine months. “It was tough when I had to support my husband and our three‑year‑old son. The new rule will help new maids, but it also puts more pressure on families like mine,” she reflects.
Key Takeaways
- Employers must pay the placement fee in full and on time.
- Costs could reach up to $3,000 per FDW.
- Industries are watching for potential shortages and cost shifts.
- Families like Lynda’s may consider alternative nationalities.
This policy shift is set to reshape how domestic helpers enter Singapore, with ripple effects for employers, agencies, and the workers themselves. As the first harvest comes in, watch for how the market adjusts.
FINANCIAL BURDEN
Mr Brian Tan, director of maid agency Nation Human Resources, said the Covid-19 pandemic has already been a financial burden on employers who must pay up to $1,700 for an incoming FDW’s swab tests and quarantine at dedicated facilities.
He added: “We hope that MOM can consider speaking to the Indonesian government to help alleviate some of the burden on Singapore employers.
The MOM spokesman said: “Employment agencies are in discussion with their Indonesian recruiters on how they can meet the requirements.
“Employers who have urgent needs and are facing delays in bringing in FDWs from Indonesia can discuss their options with the employment agencies.
“MOM has in the last few weeks been approving a larger number of FDWs from various countries to enter Singapore.”
In a radio interview, Centre for Domestic Employees chairman Yeo Guat Kwang expressed his concern about the unintended consequences this policy will have on employers.
“If an employer is paying a high price to hire an Indonesian FDW, there could be a perception among employers that the higher costs of hiring equates to a more qualified FDW.
“We are concerned that if the FDW fails to meet the expectations of the employer… due to cultural mismatch, perceived lack of relevant skills or communication issues, then it will lead to a breakdown in the employment relationship,” he said.
“The FDW may end up being sent back to the agent or, worse, repatriated in the early stages of employment.”
This article was first published in The New Paper.
MAIDSministry of manpower
