Singapore Budget 2015: Concessionary rate for Foreign Domestic Worker Levy cut to $60

SINGAPORE - From May 1, households eligible for the Foreign Domestic Worker Levy Concession will enjoy a further discount on the monthly levy.

Employers of foreign maids now pay $265 a month in levies, or $120 if they qualify for a concessionary rate. Finance Minister Tharman Shanmugaratnam announced during his Budget speech on Monday that the concessionary rate will be cut to $60.

The concessionary levy will be extended to families with children aged below 16 years, up from below 12 years old today.

"These changes will provide greater support for middle-income families who are taking care of their children and elderly parents," he said.

Currently, families with children below 12 years old, elderly parents aged 65 years or above, or family members with disabilities pay the concessionary rate.

The reduction will take effect from May 1 and will benefit 144,500 households. The annual savings from the reduced maid levy for a household amount to $720 a year.