In January 2026, a Singapore family thought they were doing everything right. They had shortlisted a helper, agreed on terms and were ready to pay the agency. Then a staff member sent them a PayNow QR code for processing fees. The money went through but later they realised it did not go to the agency at all. According to a report by Channel NewsAsia, an employee at a maid agency duped multiple clients into paying a total of about S$92,000 into his own PayNow account and was later jailed.
That news hit home for many households because it shows a simple truth: hiring help is not only about cost. It is also about process, trust and risk.
In 2026, families in Singapore still face the same big choice: hire through an agency or hire directly. Both can work. Both can also go wrong. This guide breaks down the numbers using the latest government fees and MOM rules plus what families often miss when they compare prices.
I put this together after hours of research across MOM’s latest pages and several Singapore consumer guides so you can make a decision with your eyes open.
Why This Decision Matters More in 2026
If you talk to working parents or adult children caring for elderly parents, the pattern is clear: time is tight and support at home is not nice to have. It is a need.
The scale also matters. MOM’s foreign workforce numbers show there were 308,700 migrant domestic workers (MDWs) holding Work Permits as of June 2025, and this number has been trending up over recent years.
That demand means more choices but also more confusion, more pricing differences and more hidden costs.
From my analysis of recent cases, most hiring problems in 2026 do not come from bad intentions. They come from unclear expectations and poor cost planning in the first three months.This early period is where most financial mistakes happen.
That is why this decision matters more than ever.
The Non-Negotiable Costs Every Employer Must Pay
One of the biggest mistakes employers make is comparing agency fees without first understanding fixed government costs. These apply no matter how you hire.
Work Permit Application and Issuance Fees
MOM states the fee is S$35 when you submit the application, and S$35 when you get the pass issued.
Security Bond
MOM requires a S$5,000 security bond for each helper you employ, except for Malaysian helpers, and employers cannot ask the helper to pay for it.
In real life, most families do not pay S$5,000 upfront in cash. They usually buy an insurer’s guarantee (often bundled with insurance), but it is still a cost in the overall package.
Monthly Levy
MOM’s levy rates (updated 16 Dec 2025) are: S$300/month for your first helper, S$450/month for subsequent helpers, and a concessionary rate of S$60/month if you qualify.
This levy is not a one-time “hire” fee, but it affects your real yearly cost, so it should be included in any serious comparison.
Employer Orientation Programme (EOP)
If you are a first-time employer, MOM requires you to complete the Employers’ Orientation Programme. It is a 3-hour programme that explains your responsibilities.
Option 1: Hiring through an agency (what you pay for)
When people say agencies are expensive they usually mean the agency fee. But the agency fee is paying for work that you would otherwise do yourself.
Typically, agencies handle:
sourcing and shortlisting
interviews and background checks (to different levels)
paperwork and MOM submissions
travel coordination for new helpers
guidance on insurance, contracts and onboarding
Typical Upfront Cost in 2026
Most Singapore consumer guides still place agency fees in the S$1,000 to S$3,000 range, with extra charges depending on packages, urgency and helper type (new vs transfer).
A practical way to think about it is this: agency hiring is usually higher upfront but it lowers your “process risk”. The paperwork is less likely to be wrong, and if something fails early, you often have a clearer path to replacement.
Where Agency Costs Can Quietly Rise
Even with an agency, families can still overspend if they do not ask the right questions. The most common add-ons are:
higher placement or admin fees for specific profiles
training charges that are not clearly explained
special arrangements for flights or fast-tracked arrivals
replacement clauses with strict fine print
The CNA scam case is also a reminder to verify payment channels. Always check the payee name, confirm official invoices, and pay only via the agency’s official methods.
Option 2: Direct hiring (what “DIY savings” really means)
Direct hiring usually means you are not paying a local agency’s placement fee. You either hire a transfer helper already in Singapore or you coordinate with the helper and overseas parties yourself.
MOM explicitly recognises both paths. In its step-by-step guide, the very first step is choosing between using an employment agency or hiring directly.
Where Direct Hiring Can Save Money
Direct hiring can be cheaper when:
you are hiring a transfer helper and there is no overseas sourcing cost
you already have a trusted candidate (for example, a recommendation from family)
you have done this before and you know the process well
Where Direct Hiring Can Cost More Than Expected
Families often underestimate three things.
First, your own time. The steps are manageable, but they are detailed, and errors can delay the process.
Second, the “small” costs pile up. Insurance, medical checks, flights (for overseas hires), and admin charges can quickly erase what you saved on agency fees.
Third, the lack of a safety net. If the match fails in the first month or two, the cost of restarting can be higher than what you tried to avoid.
A Cost Comparison You Can Actually Use (2026 Numbers)
Instead of pretending there is one “correct” total, here is a realistic cost framework you can apply.
Scenario A: Agency Hire (Transfer Helper)
Typical one-time items:
Agency fee and admin: often S$1,000 to S$3,000
Work Permit: S$35 + S$35
Insurance and security bond arrangement: varies (but required)
Typical monthly items:
Levy: S$300 (or S$60 if concession)
Salary: varies by experience, duties, and market norms (negotiate fairly)
What you are buying is mainly reduced hassle and support if something goes wrong.
Scenario B: Direct Hire (Transfer Helper)
Typical one-time items:
Work Permit: S$35 + S$35
Insurance and security bond arrangement
Medical check and onboarding costs (vary)
Typical monthly items:
Levy: S$300 (or S$60 if concession)
Salary
This route can be cheaper if everything goes smoothly. But if the match fails and you need to re-hire quickly, the “savings” can disappear fast.
The simple takeaway
If you are comparing purely on upfront fees, direct hiring often looks cheaper. If you compare total cost after 3 to 6 months agencies can win because they reduce restart risk.
What Families Usually Forget to Price In
1) The Cost of Delays
MOM notes most Work Permit applications via eService are processed within about a week, but it can take longer if more information is needed.
When families miss a document or upload the wrong item, that delay can mean paying for interim childcare, eldercare, or taking leave from work.
2) The Cost of a Poor Match
A helper who is not suited to your home can lead to stress, conflict, and early termination. If you then need to pay new fees and start over, the cheaper route becomes expensive.
3) The Risk of Scams and Messy Payments
The CNA case shows that even when you choose an agency, you still need basic payment checks.
If you hire directly, you also need to be careful with overseas “agents”, informal middlemen, and unclear money transfers.
Which Option Fits Most Singapore Households in 2026?
Here is the honest answer.
If you are a first-time employer or you have a high-stakes home situation (newborn, young kids, elderly with mobility needs), agencies usually make sense because they reduce the chance of a bad start. You are paying for process control.
If you have hired before, understand MOM steps, and have a strong candidate you trust, direct hiring can be a smart way to cut one major cost category.
A useful rule is this: if you cannot afford a “restart” within 2 months, avoid the path with the highest restart risk.
How to Save Money Without Taking Risky Shortcuts
Most families save the most by making the hiring decision smarter, not by cutting corners.
Start by comparing profiles and agencies in one place then shortlist based on fit. When you choose maids carefully you reduce the most expensive outcome of all: hiring twice.
Next, ask clear questions about fees and support. Whether you hire via agency or direct, get everything in writing, including replacement terms and what happens if the helper’s arrival is delayed.
Finally, do not ignore levy concession eligibility. The difference between S$300/month and S$60/month is S$240/month, which is S$2,880 a year. That is often bigger than the agency fee you are trying to avoid.
Making the Right Choice for Your Family in 2026 and Beyond
In 2026, agency vs direct hiring is not a simple “cheap vs expensive” choice. It is a choice between two cost structures.
Direct hiring can save money when you know what you are doing and the match is stable. Agency hiring can save money when it prevents delays, mistakes, and repeat hiring.
If you want a decision you will not regret, compare total cost over 6 to 12 months, not just the first invoice. That is where the real savings show up.
If you want, I can also rewrite this into a more SEO-heavy version with a cleaner “cost calculator style” section and local keyword mapping for Singapore search intent.
