- A "maid loan" is her placement fee. You pay it upfront, then recover it from her salary over a few months.
- A Singapore agency may charge her no more than 1 month's salary per year of contract, capped at 2 months.
- Many helpers still repay several months in total, because of costs charged by the agency back home.
- MOM allows you to recover the loan from her salary only if the amount, duration and method are written in her employment contract.
- Every month, she must be paid within 7 days of the end of her salary period.
- Filipino household workers are not supposed to pay a placement fee under Philippine rules, so the cost usually lands on the employer instead.
You've found a helper you like.
Then the agency says, "There's a loan of about five months."
Whose loan? Who pays? And what happens if things don't work out?
Let's make it simple.
What Is a Maid Loan?
It's the placement fee your helper owes for getting this job.
Most helpers can't pay it before they arrive. So you pay it to the agency first, and she pays you back from her salary.
The debt is hers. You're simply fronting the money.
What Does the Placement Fee Pay For?
Usually two parts, often bundled into one number.
How Is a Maid Loan Calculated?
Agencies usually quote it in months of salary. Multiply, and you have the loan.
Swipe left or right to see the full table on mobile.
| Monthly salary | 2 months | 4 months | 6 months |
|---|---|---|---|
| $600 | $1,200 | $2,400 | $3,600 |
| $700 | $1,400 | $2,800 | $4,200 |
| $800 | $1,600 | $3,200 | $4,800 |
Illustration only. Your agency's actual quote depends on her country, experience and overseas costs.
How Much Is a Typical Maid Loan in Singapore?
- Fresh helpers often carry a few months of loan, roughly $2,000 to $4,000.
- Transfer helpers already in Singapore usually carry less, because there are no overseas costs this time.
- A quote of $5,000 or more deserves questions. Ask for the breakdown.
A heavy loan means months of tiny pay for her. That weighs on morale, and you'll feel it at home too.
Can I Deduct the Maid Loan From Her Salary?
Yes, MOM allows it. But only the proper way.
- Write the amount, duration and method of recovery in her employment contract.
- Recover a fixed amount each month, as agreed. No surprise top-ups.
- Pay the rest within 7 days of the end of each salary period.
- Don't deduct for her medical costs, repatriation or compulsory training. Those are on you.
- Don't "safekeep" her salary or bank card, even if she asks.
- Keep a signed record of each payment and each deduction. It saves arguments later.
Do Filipino Helpers Pay a Placement Fee?
Under Philippine rules, household service workers should not be charged a placement fee.
So for Filipino helpers, agencies usually charge the employer more instead of loading a loan on her. Expect a higher upfront agency bill, and little or no salary deduction.
What Happens to the Loan If She Leaves Early?
This is where employers get burned. Plan for it before you sign.
What Should I Ask the Agency About the Loan?
- How much is the total loan, and what exactly does it cover?
- How much is the Singapore part, and how much is overseas?
- How many months, and how much does she keep each month?
- What happens to my money if she transfers or goes home early?
- Can I see it all written in her contract before she starts?
P.S. A maid loan is the only loan in Singapore where the borrower irons your shirts while paying it off. Be kind with the terms.
