Maid Levy Concession 2026: What the IRAS Relief Lapse Actually Changes

If you previously claimed Foreign Domestic Worker Levy Relief on your income tax return, there is an important change to know.

The relief lapsed from Year of Assessment 2025 and can no longer be claimed. As announced in Budget 2023, the Ministry of Finance confirmed support continues instead through the concessionary Migrant Domestic Worker (MDW) levy, which is targeted at households with caregiving needs, including young children, elderly family members and persons with disabilities.

The good news is that the maid levy concession itself is still available in 2026. Unlike the former tax relief, it reduces the levy you pay for an eligible helper directly, rather than reducing your taxable income later.

What Changed With the IRAS Foreign Domestic Worker Levy Relief?

The former Foreign Domestic Worker Levy Relief was an income tax relief available to eligible working women.

As announced in Budget 2023, the relief lapsed from YA2025. This means it is no longer available when filing income tax for YA2025 onwards.

This does not mean that all government support for households employing domestic helpers has ended. The separate MDW levy concession remains in place for households with qualifying caregiving needs.

What Is the Maid Levy Concession?

The maid levy concession reduces the monthly levy payable for an eligible Migrant Domestic Worker.

Current MOM rates are:

Type of Levy	Monthly Rate
First helper, standard rate	$300
Subsequent helper, standard rate	$450
Concessionary rate	$60

For a household paying the standard first-helper rate of $300, qualifying for the $60 concession reduces the levy by $240 per month, or $2,880 over a full year.

For households employing more than one helper, the concession can apply to up to two helpers. However, MOM requires one eligible person for each helper receiving the concession. So to receive the concession for two helpers, the household must have two eligible persons.

Who Qualifies for the Maid Levy Concession?

You may qualify if an eligible person lives in your household. The main qualifying categories are:

• A Singapore Citizen child below 16 years old

• An elderly person aged 67 or above who meets the citizenship or residency conditions

• A person with disabilities who requires help with at least one Activity of Daily Living, such as washing, feeding, dressing, moving or walking

MOM also allows the concession in certain situations involving Singapore Permanent Residents, depending on their relationship to a Singapore Citizen in the household.

How Much Can the Maid Levy Concession Save You?

For a first helper, the difference between the standard and concessionary levy is:

$300 − $60 = $240 per month

That works out to $240 × 12 = $2,880 per year.

For eligible households, that is a substantial ongoing reduction because the concession applies directly to the monthly levy rather than being claimed later through income tax. The exact savings for households with two helpers depend on whether both helpers qualify for the concession.

Do You Need to Apply for the Levy Concession?

Not always. For some households, MOM grants the concession automatically once the eligibility conditions are reflected in its records.

For example, if the employer is the parent of an eligible Singapore Citizen child, the concession can begin automatically from the child's date of birth. For elderly household members, the relevant person must be living in the same household as the FDWand have the same registered address. For a person with disabilities, the household must meet additional requirements, including obtaining a recommendation through the Agency for Integrated Care.

Once the required conditions and steps are completed, MOM says the concession should be reflected within the next two levy bills, including any applicable backdated adjustment from the date the required steps were completed.

One More Option for Eligible Households: Advance Placement Scheme

If your household qualifies for the MDW concessionary levy, you may also qualify for the Advance Placement Scheme.

APS allows participating employment agencies to bring a limited number of helpers into Singapore before they have been matched with an employer. Because these helpers are already in Singapore, employers can conduct face-to-face interviews and potentially deploy a suitable helper more quickly. MOM states that eligibility for APS is tied directly to eligibility for the MDW Concessionary Levy scheme, so it's worth asking about both at the same time.

Does the Concession Continue If You Change Helpers?

The concession is based on your household's eligibility rather than on keeping one particular helper permanently.

So if you hire a different helper, including a transfer maid, your household may continue receiving the concession as long as the qualifying conditions are still met and the new Work Permit is properly issued. MOM notes that levy rates are adjusted when your eligibility or number of helpers changes.

What If You Care for an Elderly Family Member With Higher Needs?

Households caring for someone who needs more significant day-to-day assistance may also want to look into the Agency for Integrated Care's Home Caregiving Grant, a separate scheme from the levy concession. It's means-tested (household income of $4,800 or less per person, or a home with an Annual Value under $21,000) and generally requires the care recipient to need help with at least three of six daily living activities, assessed through a Functional Assessment Report. It's worth checking if your household meets both the care-needs and income criteria, rather than assuming care needs alone are enough.

Not Sure If Your Household Qualifies?

The old IRAS levy relief and the current maid levy concession are two separate schemes, so it is understandable that employers may confuse them.

The simplest distinction is:

• IRAS Foreign Domestic Worker Levy Relief: income tax relief that has lapsed from YA2025.

• MOM Maid Levy Concession: ongoing reduction of the monthly MDW levy for qualifying caregiving households.

  
  

If you're planning to hire a helper and are unsure whether your household qualifies for the concession, a trusted helper agency in Singapore like Helpers Inc. can help you understand the hiring process, levy requirements, and the options available to your household.