If you employ a helper in Singapore, the Foreign Domestic Worker (FDW) levy is one of the costs you will meet every month — and one of the most misunderstood. The good news is that many families pay far less than they expect, because they qualify for the concessionary levy without even realising it. Here is a plain-English guide to what the levy is and how to make sure you are not overpaying.
What is the FDW levy?
The levy is a monthly fee the Government charges employers of Migrant Domestic Workers. It is a pricing mechanism to manage the number of foreign workers in Singapore — it is not a tax on your helper and it is never deducted from her salary. As the employer, you pay it on top of everything else.
The levy starts when your helper’s Work Permit is issued and stops when it is cancelled. You will usually pay it through GIRO, which is the simplest way to avoid missing a payment.
Important: the levy is your responsibility as the employer. You must never recover it from your helper’s wages. Missing levy payments can affect your ability to renew or hire in future, so a GIRO arrangement is strongly recommended.
The concessionary levy — who qualifies
This is where many households save meaningfully. MOM offers a concessionary levy at a significantly lower monthly rate if you have an eligible person in your household. You may qualify if your family includes:
- A young child who is a Singapore citizen (below the qualifying age set by MOM);
- An elderly person aged 67 and above who is a Singapore citizen; or
- A person with disabilities who is a Singapore citizen, certified as needing help with daily activities.
The eligible person generally needs to be living at the same registered address as you and your helper. Only one concession applies per helper, even if your household has more than one qualifying member.
How much can you save?
The difference between the standard levy and the concessionary rate is substantial over a year — for many families it is the single biggest lever on their monthly helper cost. Because these figures are reviewed from time to time, we will not quote a fixed number here: check MOM for the current standard and concessionary rates so you are budgeting from the latest amounts.
How to apply for the concession
- Confirm your qualifying household member meets MOM’s criteria (age, citizenship, or certified disability needs).
- Apply through MOM, usually online, with the supporting details for that family member.
- For a person-with-disability concession, you may need an assessment form completed by a Singapore-registered doctor.
- Once approved, the lower rate is applied — and in some cases backdated to when you became eligible.
A few common questions
Do I lose the concession if my child grows up or my elderly parent moves out? Yes — eligibility is tied to the qualifying person, so the rate reverts to standard once they no longer qualify or no longer live with you. Always update MOM on changes.
Can I get the concession for a newborn? Often yes, once the child is registered as a citizen and the household details are in order. It is worth applying as soon as you are eligible.
How Ming Hwee helps
Levy rules trip up plenty of well-meaning employers, and a missed concession quietly costs you month after month. As an MOM-licensed agency (Licence 12C6072), Ming Hwee checks your eligibility up front, helps you submit the concession application correctly, and makes sure your GIRO and Work Permit timelines line up. Want us to review your situation? Find your helper or reach us on WhatsApp and we will help you pay only what you should.
Related guides
- How Much Should You Pay Your Helper? A 2026 Salary Guide
- The $5,000 Security Bond Explained: A Guide for Employers
- Maid Insurance in Singapore: What’s Mandatory and What’s Not
Ready to hire? Get a free, no-obligation helper shortlist from Ming Hwee — Singapore’s trusted maid agency since 1983.
