17 employment agencies, who are major players in the market, will be increasing the monthly salaries of Indonesian domestic helpers from $380 to $450. The increment will take effect by this week and will only apply to new Indonesian maids.
Over the years, the supply of such helpers to Singapore has been dwindling as competition from places such as Hong Kong and Taiwan intensifies.
Nation Employment group director Desmond Chin said: "They are requesting us to match what is being paid to domestic helpers in Hong Kong, which is $650, and what is being in Taiwan, which is $800."
There will also be no change in the foreign placement fee. Still, employment agencies are wary of the possibility of a small group of maids who might try to terminate their contract so that they can be re-employed at a higher salary.
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