Employers of Migrant Domestic Workers (MDWs) in Singapore are required to pay a monthly foreign worker levy as part of the Ministry of Manpower (MOM) regulations. This levy is a key part of Singapore’s foreign worker policy framework and applies throughout the duration of the Work Permit.
At Grace Management & Consultancy Services Pte Ltd (GMC), we help employers understand their ongoing responsibilities when hiring a domestic helper, including levy payments, Work Permit compliance, and eligibility for levy concessions.
What Is the Foreign Worker Levy?
The foreign worker levy, commonly known as “levy”, is a pricing mechanism to regulate the number of foreigners in Singapore.
As an employer, you don’t have to pay Central Provident Fund (CPF) contributions for your helper. However, you must pay a monthly levy for her.
For first-time helpers, the levy will begin on the 5th day of their arrival (including the arrival date). Otherwise, the levy will begin the next day after the helper arrives.
The levy ends when the Work Permit is cancelled or expires.
FDW Levy Rates in Singapore
There are generally two main levy tiers:
- Standard levy (higher rate for most households)
- Concessionary levy (reduced rate for eligible households)
The exact rates may be adjusted by MOM over time, but typically:
- Standard levy applies to most employers
- Concessionary levy applies to households with caregiving needs such as young children, elderly persons, or persons with disabilities
When Do You Need to Pay the Levy?
The levy becomes payable once the MDW is issued a Work Permit and starts working in Singapore. Employers are required to pay the levy monthly for as long as the Work Permit remains active.
Payment is typically due by the 17th of the following month, and late payment may result in penalties or enforcement action.
How to Pay the MDW Levy
Employers can make levy payments using:
- GIRO (recommended for automatic payments)
- PayNow QR
- Other payment channels approved by MOM
Setting up GIRO helps avoid missed payments and penalties.
Who Qualifies for Levy Concession?
Some employers may qualify for a concessionary levy rate if there is an eligible care recipient in the household.
This may include:
- A Singapore citizen child below 16 years old
- An elderly Singapore citizen aged 67 and above
- A person with disabilities requiring assistance with daily living activities
Only eligible households will receive the reduced levy rate, and approval is subject to MOM’s assessment.
How Much Can You Save With Levy Concession?
The concessionary levy rate can significantly reduce monthly household costs compared to the standard rate. This is especially helpful for families requiring long-term caregiving support.
Employers unsure about eligibility can attend the Employers’ Orientation Programme (EOP) to better understand their responsibilities. Registration is available at:
Levy Waiver and Adjustments
In certain situations, employers may apply for:
- Levy waiver (temporary exemption)
- Levy adjustments (based on eligibility changes)
- Refunds for overpayment
These are typically assessed on a case-by-case basis by MOM.
Common Mistakes Employers Make
Many first-time employers are unaware of levy-related obligations. Common issues include:
- Late levy payments
- Not setting up GIRO early
- Missing concession eligibility updates
- Misunderstanding levy start and end dates
- Assuming levy is part of the helper’s salary
Understanding these obligations early can help avoid penalties.
How GMC Supports Employers
At Grace Management & Consultancy Services (GMC), we support employers in:
- Understanding FDW levy obligations
- Preparing for Work Permit applications
- Completing EOP requirements
- Managing employer compliance responsibilities
- Navigating MOM regulations confidently
Learn more about our services:
You may also explore our related guides:
- Work Permit Application Guide
- MDW Eligibility Requirements
- Maid Insurance Requirements
- Work Permit Renewal Guide
Frequently Asked Questions
Is the FDW levy part of the maid’s salary?
No. The levy is paid by the employer to the Singapore Government and is separate from the domestic worker’s salary.
When do I start paying the levy?
Levy payments usually begin once the Work Permit is issued and the MDW starts working.
Can I get a lower levy rate?
Yes, if your household meets MOM’s eligibility criteria for concessionary levy.
What happens if I don’t pay the levy?
Late or non-payment may result in penalties, Work Permit cancellation, or restrictions on future applications.
About Grace Management & Consultancy Services (GMC)
Grace Management & Consultancy Services Pte Ltd (GMC) is a Singapore-based training and consultancy organisation supporting employers through employment-related education programmes, including the Employers’ Orientation Programme (EOP).
We help employers better understand regulatory requirements when hiring Migrant Domestic Workers in Singapore.
Learn more:
Source
This article is based on publicly available guidance from the Singapore Ministry of Manpower (MOM). Employers should always refer to MOM for the latest updates and official requirements.