Potential Cost to Expect after Hiring a Domestic Helper
Now you feel great, finally hire a helper that you like! You might then wonder what cost you will need to bear to have a helper at home.
Please refer below list of required/ potential costs that might be generated.
- Salary: The Minimum Allowable Wage for a migrant domestic worker is HK$4,630 per month, as of September 2019. Please expect to pay a bit more if you’re trying to hire a locally finished contract helper. Currently in the market, the expected salary is around HK$5,000 per month.
- Food Allowance: Employers must also provide food to the worker by either sharing their food or paying the worker a food allowance to purchase their own food. The minimum food allowance is currently HK$1,121 per month.
- Mandatory Domestic Helper’s Insurance: As an employer, you are responsible for all medical expenses for your helper. Most banks and insurance providers provide specific domestic helper insurance, costing approximately HK$350 – HK$1,000 per year. Please see here list of domestic helper insurance shared by MoneyHero. Please contact us at the Help Center if you need help to connect to an Insurance company. Helperfamily.com can secure you some discounts for insurance with Prudential.
- Flights: You are responsible for a domestic worker’s travel for them to get to your home at the beginning of the contract and for them to get to their home at the end. This cost is typically between HK$2,000 – $5,000 per flight depending on their country of origin. Please see here fares from HK to Manila and fares from HK to Indonesia from Cathay Pacific (CX). If you’re hiring via a full service agency, the flight cost for the helper to get to HK is usually included in the package price already.
- Bonus or Gifts: Employers can choose to reward their helpers for good performance with a bonus payment monthly/ annually/ during special occasions e.g. helper’s birthday, helper’s children’s birthday. Some employers also choose to send gifts to helpers for appreciation.
- Food and Travel Allowance: According to Clause 7(b) in the Standard Employment Contract (SEC) , a daily food and travelling allowance of $HK100 per day should be paid to the domestic helper per each day of travel to their place of origin through the most direct route.
- Replacement costs: If you terminate your domestic worker’s contract early you may be responsible for more expenses than you had originally budgeted. For example, you’d have to pay for a flight home earlier than you expected in addition to paying more agency fees to hire a replacement.
- Severance Payment: you might also need to pay for severance payment if the helper is dismissed due to reason of redundancy (note that relocation is considered a type of redundancy), and has at least 24 months of service immediately prior to the termination.
Severance Payment calculation: Monthly wage x 2/3 x reckonable years of service, service of incomplete year should be calculated on pro-rata basis.
- Long Service Payment: Domestic helpers are also eligible to Long Service Payment provided they meet the necessary requirements. A domestic helper is entitled to long service payment if he/she
‧Has worked continuously for at least 5 years
．Is dismissed, or the fixed term contract is not being renewed by reason other than serious misconduct or redundancy.
．Is certified by a registered medical practitioner or registered Chinese medicine practitioner as permanently unfit for the present job and he/she resigns;
．Is aged 65 or above and he/she resigns;
．Dies in service
Long Service Payment Calculation:Monthly wage x 2/3 x reckonable years of service, service of incomplete year should be calculated on pro-rata basis
This list of costs are just examples and might not include all possible costs. This information is provided based on our experience. Helperfamily.com doesn’t bear the responsibility of the accuracy of the information.
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