Have you ever wondered how maid agencies make money? This article will demystify how they get their income and shed light on the market practices in Singapore. This will also help you as an employer on what to look out for.
Understanding the Revenue Streams
Typically, an employment or maid agency earns from both parties and they are you the employers and the domestic helpers.
1) Service Fees from Employers
Maid agencies primarily earn from employers through service or agency fees. These fees can vary significantly from one agency to another, ranging from as low as $100 to over $1000. It’s essential to understand what these fees cover and not just look at the agency fees at face value. These fees typically include:
- Matching Services: Identifying the right helper based on your specific needs.
- Administrative Work: Handling paperwork and submission of necessary documents.
- Medical Checks: Ensuring the helper undergoes required medical examinations.
- Regulatory Compliance: Making sure all legal and regulatory requirements are met.
- Ongoing Support: Providing assistance and support throughout the two-year contract.
Read on to learn what you need to take note of when comparing agency fees.
2) Fees from Helpers
According to the Ministry of Manpower (MOM) regulations, agencies can charge helpers a maximum of two months’ salary for a two-year contract. For example, if a maid’s salary is $600 per month, the maximum fee an agency can charge is $1200.
However, it’s important to understand that overseas agencies or suppliers often charge additional fees. These can include costs for flights, accommodation during training, passports, and documentation. The Singapore agency collects these fees on behalf of the overseas suppliers, a practice sometimes referred to as placement fees or loans. These additional costs can amount to as much as 6-8 months of the helper’s salary.
Hidden Fees and Market Practices
Beyond the standard fees, some agencies employ other ways to increase their revenue. These can include:
- Documentation Fees: Charges for handling paperwork beyond what’s covered by the service fee.
- Biodata Fees: Costs associated with providing detailed profiles of potential helpers.
- Training Fees: Additional charges for any training programs provided to the helpers.
- Accommodation Fees: Costs for lodging helpers while they await deployment.
- Insurance Fees: Charges for arranging insurance coverage for the helpers.
- Transportation Fees: Costs for transporting helpers to various appointments or workplaces.
- Replacement Fees: Fees for replacing a helper within a specified period if the initial match does not work out.
Example of Income from a Single Transaction
To better understand how a maid agency can make money, let’s consider an example of a single transaction:
- Service Fees from Employer: Suppose an agency charges $800 for their services.
- Fees from Helper: The agency charges the maximum allowed by MOM, which is $1200.
- Additional Fees:
- Documentation Fees: $200 for handling extra paperwork beyond the standard service fee.
- Biodata Fees: $100 for providing detailed profiles of potential helpers.
Total Income from a Single Transaction:
- Service Fees from Employer: $800
- Fees from Helper: $1200
- Additional Fees: $200 + $100 = $300
Total income from one transaction: $800 + $1200 + $300 = $2300
Fair Care’s Ethical Approach
At Fair Care, we believe in transparency and fairness. While we respect how other agencies run their business, we want to challenge some of the common market practices by:
- Fair Pricing: We avoid low agency fees that are compensated by higher charges to the helpers. We believe in a fair distribution of costs.
- Inclusive Services: Our agency fees cover admin, documentation and biodata services, which we consider part of our core responsibility to you and the helper.
- Ethical Overseas Partners: We work with overseas suppliers who do not exploit helpers. Our partners ensure helpers are not burdened with excessive loans. We recognize that it’s unreasonable for helpers to work 6-8 months without pay, as they have families depending on them.
FIND OUT MORE ABOUT FAIR CARE HERE
Risk-Free Matching Process
At Fair Care, we offer a risk-free matching process with a 100% money-back guarantee. This means if the initial match does not work out, we provide a replacement without additional charges or offer a full refund. This ensures you have peace of mind and the right helper for your household.
Building Trust and Credibility
By choosing Fair Care, you’re opting for an agency that prioritizes ethical practices and the well-being of both employers and helpers. Our commitment to transparency and fairness sets us apart in the industry, ensuring that your experience is positive and trustworthy.
Conclusion
Would you like to know more if we tell you your total fees can be less than half of the example mentioned? Get More Info Here!
Understanding how maid agencies make money helps you make better choices. At Fair Care, we strive to create a fair and transparent process, ensuring that both employers and helpers are treated with respect and integrity. Choose Fair Care for a trustworthy and ethical hiring experience.
[…] Singapore Agency: Takes 2 months of the maid’s salary (SGD 1,000), which aligns with the Ministry of Manpower’s (MOM) regulation that agencies in Singapore can charge up to 2 months’ salary as placement fees. You may find out more about how maid agencies work and earn their income HERE. […]