Foreign Domestic Helper Expenses in Hong Kong

Hong Kong residents lead busy lives, and many families hire 'domestic helpers' to assist with household tasks. However, hiring a foreign domestic helper in Hong Kong comes with requirements regarding household income, labor benefits, and domestic helper insurance, resulting in significant expenses. This guide outlines the costs associated with hiring a helper to help prospective employers budget better.

Overview of Hiring Costs for Foreign Domestic Helpers

*This case assumes the helper dines at home, so meal allowances are not included.

Family Income Requirement of at least $15,000

The Immigration Department mandates that all applicants hiring domestic helpers must provide proof of household income, demonstrating a monthly income of no less than $15,000. This measure is to prevent families with insufficient or unstable income from hiring helpers they cannot afford.

Statutory Holidays and Meals for Helpers

According to the Labor Department's "Standard Employment Contract" (ID 407) for employing foreign domestic helpers, employers must grant helpers 14 days of statutory holidays per year and at least one day of rest per week. Employers must also provide free meals or a meal allowance of no less than $1,236, as well as free accommodation. For more details, refer to the Labor Department's "Practical Guide For Employment of Foreign Domestic Helpers."

Minimum Wage for Domestic Helpers

As of September 28, 2024, the "Minimum Allowable Wage" for foreign domestic helpers is set at HKD $4,990 per month for contracts signed on or after this date, an increase of 2.5% from the previous rate of HKD $4,870. The meal allowance remains at no less than $1,236 per month.

How to Pay Helpers?

Employers should discuss the monthly salary payment date with the helper and must pay at least once a month. By law, employers must not delay payment beyond 7 days after the salary period ends.

The Labor Department recommends that employers pay salaries via cheque or automatic transfer, but this requires the helper’s consent. If the helper does not agree, the employer must pay in cash. Employers should keep records of salary payments, such as bank statements, and ask the helper to sign a receipt to avoid future disputes.

If the employer fails to pay on time, they must pay interest on the unpaid wages. If prosecuted and convicted, they can face fines of up to HKD $350,000 and imprisonment for 3 years.

Medical Expenses for Sick Helpers

According to the Standard Employment Contract, the employer is responsible for providing free medical expenses for the helper during their employment in Hong Kong, covering consultation fees, hospitalization costs, and dental emergencies. If the helper voluntarily leaves Hong Kong for personal reasons (e.g., holidaying at home), the employer is not responsible for medical expenses during that period.

While the law requires employers to purchase labor insurance for helpers, the insurance only covers medical expenses incurred due to work-related injuries, permanent loss of work capability due to such injuries, and death compensation; Other illnesses, such as fever or cold, are not covered by labor insurance. Therefore, it is advisable to purchase additional comprehensive insurance for the helper to provide broader coverage.

Comprehensive Domestic Helper Insurance

The law requires employers to purchase domestic helper insurance and provide free medical care. Since employers bear all medical costs during the helper's employment, wise employers will purchase insurance that includes medical and outpatient coverage to mitigate risks.

Comprehensive helper insurance goes further, meeting basic legal requirements while providing personal liability coverage, third-party liability coverage, and protection against economic losses caused by the helper's fraud or theft.

If the helper has been with you for a long time, you might consider additional coverage for serious illnesses, such as heart disease, cancer, or stroke.

Lastly, the premium for helper insurance is determined by factors such as the helper's country of origin, insurance duration, nature of work, and any additional purchased coverage. Depending on the coverage, comprehensive domestic helper insurance for a two-year period ranges from $550 to over $1,300. As with purchasing other types of insurance, pay attention to details like payout limits, exclusions, and deductibles when selecting helper insurance.

Comparison of Domestic Helper Insurance Plans

Health Check: Home Country vs. Local

Before arriving in Hong Kong, foreign helpers undergo a health check in their home country. Tests include lung and heart function, hepatitis B, HIV, syphilis, and pregnancy. Employment agencies are responsible for providing employers the health reports, and the health check costs are included in the service fee, so the employer does not need to pay extra.

If the employer wants additional reassurance, they can request a local health check for the helper through the employment agency after arrival, but the cost must be borne by the employer.

Service Fees for Employment Agencies

If you are hiring a helper through an employment agency, be aware that agencies typically charge between $7,500 and $14,000 for their services, including a one-way flight to Hong Kong. Employers should choose reputable agencies and be cautious of hidden fees, asking the agency to clarify charges before making a decision.

Maternity Leave for Helpers

If your helper becomes pregnant and has been employed for at least 40 weeks, under Hong Kong labor law, they are entitled to 14 weeks of paid maternity leave. The daily pay during maternity leave is equivalent to four-fifths of their usual daily wage.

If you hire a male helper whose spouse is pregnant and has been employed for at least 40 weeks, he is entitled to five days of paid paternity leave.

Travel Expenses to and from Home Country

In addition to the basic salary and meal allowance, the employment contract stipulates that the employer must cover the helper's airfare (averaging about $3,000, depending on the home country), including a return ticket after contract completion, and transport costs for two days upon arrival and departure (totaling $200).

Kwiksure compares comprehensive domestic helper insurance across Hong Kong, providing compensation for medical, accident, hospitalization, and surgical expenses for foreign domestic helpers, workers, household assistants, and hourly workers.

Service Fees from Nine Employment Centers

Termination Costs / Long Service Payment Calculation

Comparison of Prices for Indian, Filipino, and Thai Helpers

Thai helpers have become increasingly popular among Hong Kong employers. However, there is a significant price variation among agencies for Thai helpers, with some agencies charging more for Thai helpers than for Filipino and Indonesian helpers. For example, the Overseas Employment Center charges a fee of HKD $8,980 for local Filipino helpers, HKD $12,980 for local Thai helpers, and up to HKD $13,980 for overseas Thai helpers.

Conversely, Technic Employment Service Center offers lower fees for Thai helpers, charging HKD $10,880 for both local and overseas Thai helpers, lower than the fees for Filipino and Indonesian helpers, which range from HKD $12,980 to HKD $15,980. Therefore, it is advisable to compare different agencies when choosing helpers from different countries.

Source of Information

Labor Department

Immigration Department

Frequently Asked Questions

What are the most common expenses when hiring a foreign domestic helper?

The most common expenses include statutory holidays and meals for the helper, minimum wage, employment insurance, agency service fees, maternity leave, and travel expenses to and from the home country.

How much does it cost to hire a foreign domestic helper?

The estimated total cost over two years is approximately HKD $126,560.