Red packet (Ang Pow, or Ang Pao) – Cost of hiring confinement nanny
It has become a tradition for employers to give two red packets (Ang Pow) to confinement nanny. Some confinement agents have included this practice as part of the standard procedure. One red packet (Ang Pow) is to be given to confinement nanny upon her arrival, another one will be passed to her on her last day with you. If you do not give, some confinement nannies may request for it.
There is no standard rate for amount of money in the red packet (Ang Pow). In 2016, market rate for the red packet will be between $30 to $200. For departure red packet, many employers usually will give based on the performance of the confinement nannies. Most of the employers we know will give much more for departure red packet. For example, in June 2016, one employer we interviewed gave $50 red packet upon arrival of her confinement nanny and $200 for departure. On the average, the amount of money in red packet is around $200.
If you need to change confinement nanny through agency, probably you will need to pay a little more on red packet.
Extra Fee for Festival season – Cost of hiring confinement nanny
Many confinement ladies will charge much more during festival season as many other confinement nannies choose not to work during festival season. If your confinement falls on Chinese New Year, you will probably have to fork out much more for confinement nanny. The extra fee will vary from one confinement lady to another. As a general guideline, the extra fee will be more than $500.
Salary – Cost of hiring confinement nanny
Basic salary forms the biggest part of the cost. Price for confinement nanny in 2016 is between $2300 to $2600. For experienced confinement nanny, the cost can range between $3000 to $4000.
The exact fee will also depend on the duty of the confinement nanny, so it is important for you to decide what confinement nanny will do for you before you negotiate the price. Optional duty for confinement nanny include cooking for other family members, for example.
Furthermore, duration of your confinement is another factor in determining the basic salary. As stipulated by the Ministry of Manpower, the minimum duration will be 2 weeks while maximum will be 16 weeks.
During festival season like Chinese New Year, the basic salary can go up to between $3500 and $4500.
Daily Expense – Cost of hiring confinement nanny
Basically, you will have to provide everything like meals, toiletries, water and electricity when the confinement nanny stays with you during your confinement.
Fee for Work Permit – Cost of hiring confinement nanny
If you hire a confinement lady from neighboring countries like Malaysia, you will need to apply a temporary work permit for her. The application fee for short-term work permit is $30. The fee will be collected by the Ministry of Manpower. If you get the confinement nanny through agency, agency will do the paper work and collect the fee from you. To avoid any dispute, it is important for you to check whether this $30 is included in the package if you engage an agent.
Please note that it is considered illegal for a confinement nanny to work with a social visit pass.
Levy for Confinement Nanny – Cost of hiring confinement nanny
Similar to hiring a maid in Singapore, employer will need to pay levy for confinement lady. The amount of levy for confinement nanny is $60 per month for Singaporean employer. For non-Singaporean employer, the levy will be $265 per month.
Agency Fee – Cost of hiring confinement nanny in Singapore
If you are hiring a confinement nanny through agency, you may need to pay agency fee. Of course, for most agencies here, agency fee is usually included in the package.
If you need to replace the confinement nanny for more than 1 time (most of the confinement agent will allow you to replace one time for free), you may need to pay agent some extra fee.
Medical insurance – Cost of hiring confinement nanny in Singapore
According to the Ministry of Manpower, medical insurance for confinement lady is required. You should buy medical insurance of at least $15,000 to cover your nanny during her employment with you.
Medical checkup – Cost of hiring confinement nanny in Singapore
Again, this is not compulsory. As confinement lady will be in close contact with your newborn and you during confinement, having a medical checkup will ensure your newborn and you will be in a safe hand.
In Singapore, this could cost more than 200 dollars.
Frequently Asked Questions About Cost of Confinement Nanny?
Question 1: Any security bond needed like the one for maid?
Answer: It is not required.
Question 2: Is deposit required?
Answer: If you hire the confinement nanny through agency, they will require initial deposit. Amount of deposit will vary from one agency to another.
For most agencies, the deposit is refundable. But they will charge an administrative fee for the refund.
Question 3: Do I need to pay levy if the nanny is local?
Answer: You do not need to pay levy if the nanny is local.
Levy is applicable when you hire nanny from Malaysia.
Question 4: How do I pay the levy?
Answer: If you have another foreign domestic worker registered under your name, you will get a combined monthly levy fee deductible by GIRO.
If you do not hire maid, you can choose to pay the levy through SingPost or SAM, cheque or by Internet Banking. You just need to wait for letter from the government authority for payment instruction.
Question 5: Do I need pay levy if the confinement nanny is my relative from Malaysia?
As long as you apply work permit for her, you will need to pay the levy.