Reducing Migrant Domestic Workers' Upfront Costs for Families with Young Children or Vulnerable Elderly and Enhancing Employer Protections

Mr Speaker, the median upfront recruitment outlay to hire new migrant domestic workers (MDW) is around $4,700, of which half consists of loan to the MDWs that the employer subsequently recovers.

This upfront cost has remained largely stable since 2022, after accounting for inflation. With more than 2,500 employment agencies (EAs) licenced to place MDWs, EAs have to take into account market competition when they are pricing their services. We provide information on Ministry of Manpower's (MOM's) online EA directory to enable employers to compare EAs' track record such as customer service ratings, years of service, and retention and transfer rate of MDWs when choosing EAs.

When there is a mismatch of MDWs with employers, MOM requires EAs to refund employers at least 50% of the service fees paid if MDW's contract is terminated within the first six months of employment without a suitable replacement.

Families with young children and elderly enjoy significant subsidies today in the form of concessionary levies at about $60 a month instead of $300. This amounts to about $5,760 in savings over two years. MOM also has measures in place to protect MDWs' employers' legitimate interest. MDWs who commit serious offences, such as stealing, are barred from future employment in Singapore. Prospective employers may use the FDW e-service portal to assess information about MDWs' past work performance, length of each employment and reasons why these MDWs left their past employment before hiring.

We will continue to regularly review and enhance our measures to safeguard the interests of employers and build a system that is fair to both employers and MDWs.

Thank you, Speaker, and thank you to the Senior Parliamentary Secretary for the response. I have one supplementary question. Would the Ministry consider establishing benchmark ranges for agency fees based on prevailing market practices to prevent excessive charges and ensure affordability for families?

I thank the Member for the supplementary question. We generally allow agency service fees to be determined by market forces. This competition encourages the EA to differentiate their services and their quality and their price. To note, like what I have mentioned, there are already fee caps on EAs, the amount that they can charge the MDWs, which I mentioned in my reply. And with the data available on the EA directory, such as customer service ratings, years of service, employers can make a more informed decision on pricing. In terms of affordability, there are also other schemes that will provide financial services to families with much heavier caregiving needs. For example, the Caregiving Grant, which provides about $400 of payout, and this will be increased in April 2026 to $600.

I have also mentioned about levy concessions for needy households. Those households who need further assistance can approach social services for additional financial assistance. For families without caregiving needs, they also can consider part time cleaning services under the Household Services Scheme, which may be more affordable.