Hiring a migrant domestic worker (MDW) in Singapore offers invaluable support to households needing assistance with childcare, eldercare, and general household chores. However, for many families, the monthly MDW levy can be a substantial cost. To help reduce this financial burden, the Singapore government provides a levy concession for families with specific caregiving needs. This guide covers everything you need to know about the MDW levy concession, eligibility criteria, benefits, and other caregiving grants to help you manage these costs.
What is the Migrant Domestic Worker (MDW) Levy?
In Singapore, employers who hire helpers must pay a monthly levy, which helps regulate the demand for maids and ensures that they are available for families with genuine caregiving needs. As of 2024, the MDW levy rates are as follows:
| Type of levy | Monthly rate | Daily rate |
| Normal (1st helper) | $300 | $9.87 |
| Normal (Subsequent helpers) | $450 | $14.80 |
| Concessionary | $60 | $1.98 |
The levy applies to most employers unless they qualify for the MDW Levy Concession Scheme, which reduces the monthly levy to $60 per month.
Benefits of the Levy Concession
The MDW Levy Concession is designed to support families who need extra caregiving assistance due to the presence of young children, elderly family members, or persons with disabilities (PWDs) in the household. With the concession, households pay just $60 per month for each MDW that qualifies, reducing the financial load significantly. Over a year, the savings amount to $2,880 per maid, making it more feasible for families to hire and retain helpers.
Eligibility Criteria for the MDW Levy Concession
To qualify for the MDW levy concession, employers must have an eligible person in their household who is a Singapore citizen. The eligible person should fit into one of these categories:
- Young Child: Aged below 16 years.
- Elderly Person: Aged 67 years or older.
- Person with Disabilities (PWD): Someone who requires assistance with at least one Activity of Daily Living (ADL), such as washing, feeding, dressing, moving around, toileting, or transferring. The disability must be certified by a Singapore-registered doctor.
Each eligible person in the household qualifies the family for a levy concession for one helper, up to a maximum of two per household.
Example Scenarios for Eligibility:
- If a household has two young children under 16, they may qualify for a concession on two helpers, each at a levy of $60 per month.
- A family with one elderly parent and one PWD may also qualify for two maids at the concessionary rate, assuming both family members meet the criteria.
How to Apply for the MDW Levy Concession
The application process for the MDW levy concession depends on the relationship and eligibility of the household members:
- Automatic Grant: The concession is automatically granted if the eligible person is the employer, spouse, or child and meets the age or disability requirements.
- Application Required: If you were not automatically granted the levy concession, you need to apply for the concession via the MOM’s online portal.
Additional Support: Home Caregiving Grant (HCG)
The Home Caregiving Grant offers up to $400 per month to families that require long-term caregiving support. This grant is available for households with family members who need assistance with three or more ADLs. The grant can be used to offset costs related to caregiving, including hiring an MDW.
Eligibility for HCG:
- Singapore Citizen or Permanent Resident
- Assessed by the Agency for Integrated Care (AIC) as needing help with three or more ADLs
Frequently Asked Questions (FAQs)
1. Can the MDW levy concession be applied automatically?
Yes, the information about your household members is provided during the In-Principle Approval (IPA) application. If the eligible person is included in the IPA application, the levy concession will be applied automatically. However, if it isn’t applied automatically, you’ll need to submit a separate application.
2. What happens if the eligible person no longer meets the criteria?
If the eligible person no longer qualifies (e.g., a child turns 16), the concession will be adjusted accordingly.
3. Can expatriates qualify for the MDW levy concession?
No, the concession is only available to households with eligible persons who are Singapore citizens.
4. Can households apply for both the levy concession and other caregiving grants?
Yes, families can benefit from the MDW levy concession and additional grants such as the HCG if they meet the criteria.
Maximizing Savings with Levy Concessions and Grants
Employing a maid is often necessary for families in Singapore, but the costs can add up quickly. By leveraging the MDW Levy Concession alongside caregiving grants, eligible households can reduce expenses and manage caregiving needs more sustainably.
For households that qualify, this concession reduces the monthly levy from $300 to $60, resulting in significant savings. Combined with the Home Caregiving Grant, the government offers robust support for families managing caregiving responsibilities.
Final Thoughts
Taking advantage of the MDW Levy Concession and available caregiving grants can substantially reduce the financial burden of hiring a migrant domestic worker, making essential support more accessible for households. By understanding the eligibility requirements and applying for all relevant assistance, families can secure the help they need while managing costs effectively.
For more information, visit the MOM’s website on MDW Levy Concessions or consult with a reputable MDW agency. As one of Singapore’s top agencies, Maid Avenue is committed to transparency and competitive pricing. Reach out to Maid Avenue here to learn how we can support your household needs.
