If you’re considering hiring a Foreign Domestic Worker (FDW) who is already in Singapore, you may come across the term FDW transfer. This refers to a situation where a helper moves from one employer to another without leaving the country. It is a common choice for families who want to avoid long waiting times and prefer a helper with local experience.
However, before proceeding with a transfer, it’s important to understand how it affects your responsibilities — especially when it comes to insurance coverage and the monthly levy. In this article, we’ll explain what a transfer involves, how it impacts you financially, and what to prepare as a new employer.
What Is an FDW Transfer?
An FDW transfer happens when a domestic helper changes employers while staying in Singapore. This usually means the helper is not returning to her home country but is moving directly to a new household.
Transfers are common and can happen for several reasons, such as the current employer relocating, contract completion, or a mismatch in job expectations. Unlike hiring from overseas, the process is faster and may involve less waiting time.
How FDW Transfer Affects Insurance Coverage
New Employer’s Responsibility
As a new employer of a transfer FDW, you are fully responsible for arranging new insurance coverage. Insurance policies from the previous employer do not carry over to the next. This is a common misunderstanding.
According to the Ministry of Manpower (MOM), every employer must purchase:
- Medical insurance with an annual claim limit of at least S$60,000. If the plan has sub-limits (e.g. per disability, inpatient care or day surgery), each sub-limit must also be at least S$60,000. Since 1 July 2023, the plan must include a co-payment feature where the insurer pays 75% and the employer pays 25% for claim amounts above S$15,000. From 1 July 2025, further enhancements will apply, including standardised exclusion clauses, age-differentiated premiums, and direct payment by insurers to hospitals for eligible claims.
- Personal accident insurance with a minimum sum assured of S$60,000 per year. It must cover sudden and unforeseen incidents resulting in permanent disability or death, with no additional exclusions beyond those specified in the Employment of Foreign Manpower Regulations.
- A security bond of S$5,000 for each non-Malaysian Migrant Domestic Worker (MDW), unless exempted under the FDW Employer Scheme.
These are legal requirements and must be in place before the new Work Permit is issued.
When to Arrange Insurance
You must purchase and submit the insurance documents before the FDW’s new Work Permit can be approved. Delays in arranging insurance can slow down the transfer process. It is best to get these done early and work with a reliable agency that can assist you.
Levy Implications for New Employers
Understanding the FDW Levy
The FDW levy is a monthly fee paid to MOM for employing a domestic helper.
- The standard levy is $300 per month.
- Households that qualify may pay a concessionary levy of just $60.
When the Levy Starts
Your levy charges begin on the date the new Work Permit is issued, not when the FDW starts working in your home. Even if there is a short wait before the FDW officially moves in, the levy still applies from the permit date.
MOM explains that levy deductions are made from your GIRO account, and it’s important to ensure your account is active to avoid any fines or late payments.
Eligibility for Levy Concession
You may apply for a levy concession if your household has:
- A child below 16 years old,
- An elderly person aged 67 and above, or
- A family member with a disability.
This must be applied through the MOM Levy Concession Scheme, and approval is not automatic. Always check eligibility beforehand.
Common Misunderstandings About FDW Transfers
There are a few common myths surrounding FDW transfers that employers should be aware of:
- “The previous insurance is still valid.”
✖ False. You must buy a new insurance policy. - “Levy only starts when the helper begins working.”
✖ False. Levy starts from the Work Permit issue date. - “I will automatically get the concessionary levy.”
✖ False. You must apply and be approved for it.
Tips for a Smooth FDW Transfer Process
- Buy Insurance Early – This avoids delays and ensures the transfer process goes smoothly.
- Track Permit Dates – Use MOM’s online tools to monitor the progress of the Work Permit application.
- Check Levy Bills – Keep an eye on your GIRO deductions and contact MOM if something seems wrong.
- Ask for Help – Work with a trusted agency like NannyStreet to guide you through each step.
According to Singlife, many first-time employers find the process confusing, but with proper guidance and early planning, things can be managed smoothly.
NannyStreet’s Advice: Let Us Support Your FDW Transfer Journey
At NannyStreet, we understand that managing an FDW transfer can be confusing, especially for first-time employers. From insurance arrangements to levy concessions, there are many details to take care of — and missing any of them can lead to delays or penalties.
That’s why we’re here to guide you step by step. Whether you’re planning your first hire or switching to a transfer helper, our experienced team will make sure all your paperwork is in order. We help with MOM submissions, insurance setup, and levy support so that you can welcome your new helper with peace of mind.
If you’re ready to start your FDW transfer journey, contact NannyStreet today — we’re here to make the process smooth, fast, and stress-free.