The Cost
of employing a Filipino Maid in 1998. Cultural difference:
Americans v. Singaporeans. Case study written in July 29,
1998
"I like the 40-year old Filipino maid" said the Asian-American
wife who felt the urgent need to get a maid. The new Woodlands
house gets dusty every day despite the closed doors and she
needs mopping daily to remove the dust. Woodland housing near
the American School still has a lot of construction of new lots
and dust is to be expected.
However, she was informed that the maid had to be sent home
first by the British couple (since the pregnant wife had
decided) and then come back again.
The maid's
salary has been S$450/month, every Sunday and public holidays
(around 10) being her off-days. She would have to resign as she
could not cope with the moods of the new mum and was prepared to
take $400.
Later in
the evening she phoned and said that if she had to entertain
guests, the maid would not be around and changed her mind!
Singaporean employers pay around S$320 for a new Filipino maid,
inexperienced permitting 2 Sundays off per month.
Some Caucasian employers have generous pay and off days and
maids do not work after 5 p.m. There are Caucasians who adopt
the local practices too.
The cost of an inexperienced Filipino maid:
salary: S$300 or S$320 (2 Sundays off).
Government levy: S$350 (approximate).
Monthly
cost to employer excluding agency fee, food, accommodation and
air-fare home at the end of 2-year contract is from S$650.
What does
the Agency fee cover?
Services
to meet the maid on arrival at the airport and looking after her
welfare till handing over to the new employer.
Follow-up
services for the new maid.
Work
permit application service.
Insurance
which should cover:
Government's guarantee $5,000 (forfeited if the maid becomes
pregnant or is not repatriated - some maids run away).
Personal accident of $10,000.
Medical expenses of $2,000.
Repatriation expenses of $10,000
Hospital & surgical expenses of $5,000.
Wage compensation of $30/day (max. 30 days).
Termination expenses of $300.
Why are
some agency fees payable by the Employer lower than others?
Much depends on the creative ways to lowering cost to the
employer. Two examples are given as follows:
Example
1.
Agent in Philippines charges $400 and get another 6 months'
salary from the maid when she works in Singapore. Total charges
paid by the maid amount to around S$2,200.
Singapore
agent charges $1,400 (no other hidden cost) to employer.
Example
2.
Employer pays a total of $1,600 to agent and recover $600 from
maid's 2 months' salary. The Employment Agent in Singapore
charges maid $300.
The maid
saves as much as $2,200 less $600, a hefty savings of $1,600 but
the net cost to the employer (if the maid stays at least 2
months) will be $1,000. There are various formulae. Just be
cautious and get a good agent. In 2011, the situation has
changed considerably. Consult a good employment agent.
|