Paying levy for a foreign domestic worker in Singapore
Levy is a pricing introduced by the government with aims to regulate the hiring of foreign domestic workers (FDWs).
Instead of paying “CPF Contributions” we pay levy – which is a monthly fee imposed on employers. This is not a one-time expense. The Maid Levy rate would depend on factors such as the number of maids you have engaged under your household, nationality and if you are eligible for any concessionary rates.
What is the Levy rate?
- First Maid / Helper $350
- Subsequent Maid / Helper $450
- Concessionary $60
The concessionary rate applies to families with a young child, elderly member or person with disability. When you are no longer eligible for levy concession or your number of maids changes, the levy rate may be adjusted. The new rate take effect immediately. if you are unsure how much or how, here is where you can check and pay levy.
Pro-rated rates
The levy ends when the Work Permit is cancelled or expires and a prorated maid levy will be calculated accordingly.
Prorated Levy = [Daily Levy] x [Total Days Worked]
Daily Levy = [Monthly levy rate x 12] / 365 *rounding up to the nearest cent.
Is there any tax relief for Maid Levy?
There are certain guidelines that you may be eligible for tax relief if you meet any of the following conditions:
- You are a married woman and has elected for separate assessment.
- You are married and your husband is not resident in Singapore.
- You are separated or divorced or widowed and living with your Unmarried child for whom you can claim child relief.
When and How to make a Levy Payment
You can pay maid levy via a General Interbank Recurring Order (GIRO) or PayNow. If you do not have any GIRO accounts set up, you may register here. Kindly ensure that there is enough funda maintained for deduction otherwise your bank may impose a failed transaction fee.
Penalties of Late Payment
- Late Payment Penalty will be charged at 2% per month or $20 whichever is higher. Total late payment penalty will be capped at 30% of the outstanding levy.
- Your helper’s Work Permit will be revoked.
- You won’t be allowed to apply for or issue a new Work Permit, or renew an existing Work Permit.
To avoid a complicated situations, we advise for you to pay your levy via GIRO which is an auto deduction so that you won’t miss a date!
For more information, refer http://www.mom.gov.sg