The Hidden Costs of Working Abroad: Balancing Financial Gains and Emotional Losses(Workers in Singapore)

For 7 years, I worked abroad—spending months, even years, away from my family. Like millions of Filipino workers, I faced the paradox of economic gains and emotional costs. But is the sacrifice worth it? This article dives into the numbers, the real-life impacts, and what it truly means to work far from home.

Introduction: Making Informed Choices

This is just a retrospective article about my 7 Years of working overseas and being away from family for months on end, with almost 2 years away during the pandemic. I have always wondered about the social and emotional cost and have not seen any article or calculation on the Asian context. I have seen some US military and also oil rig workers(fifo workers also), but none that are Asian or similar to mine. My journey of being abroad has long been a pathway for many Working Class and Immigrant Filipinos(10% of 116 Million or 1 in 10), during the Post-Martial-Law Years(Presidential Decree No. 442 - 1974) and past the Middle East Boom, now seeking financial stability and better opportunities for their families has long endured.?

However, while the financial prospects appear very promising, it is critical to also consider the social and emotional costs associated with prolonged separation from your loved one(it's not unique to the Philippines as India, Bangladesh, Pakistan, and Mexico also have similar programs). This analysis, if you want to call it, examines the financial benefits and emotional trade-offs for workers(Filipinos or Asians) in Singapore across different income levels, including domestic helpers, mid-skilled workers, and high-income professionals(Tech, Finance, and also Oil and Gas). Using basic math/statistical models, and real-life data, and some personal examples, this article presents a clear picture of the balance between financial gain versus the social cost.

Breaking Down the Scenarios

My basic analysis focuses on these three typical cases of workers in Singapore(as of 2024 and PH to SGD is at 41 pesos):

1. Domestic Helper (Nanny) Income: SGD 800/month (PHP 32,800) that is with free food, accommodation, and one free trip home annually [3].
2. Median Income: SGD 3,000/month (PHP 123,000) for mid-skilled workers such as retail supervisor, administrative staff or customer service roles [4].
3. High-End Income: SGD 8,000/month (PHP 328,000) for professionals in engineering, Tech/IT and developers, Management, or specialized fields [5].

Financial Benefits

To calculate the total annual financial benefits, we use the following formula:

Annual Benefits Formula: Total Benefits = Income Gains + Living Cost Savings + Remittances + Career Advancement?

TB = IG + LCS + R + CA

Where:

• TB = Total Benefits
• IG = Income Gains
• LCS = Living Cost Savings
• R = Remittances
• CA = Career Advancement

Income Gains: Calculated based on monthly salaries from MSIG Singapore (n.d.) [3] and Singapore OFW (2020) [5].

Living Cost Savings: Free food and accommodation for domestic helpers are valued at SGD 600/month or PHP 295,200 annually [3]. As for the Median and High-end, we assume SGD 700 and 1,500, for rent, Grocery is at SGD 350 and 500, Transportation is at SGD 100 and 250.???

Remittances: Workers typically remit 70% of their income, we made all 3 examples [4].

Career Advancement: Estimated benefits of upskilling and career growth for mid- to high-level earners, this was placed in the Median and also High-end examples as these are mostly internal training brought by Process and Technology updates [2].

Social and Emotional Costs

Social costs are derived from therapy, missed time, tutoring for children, and relationship counseling expenses(inclusive of death of family members, holidays, graduation, fiesta, and family birthday celebrations):

Social Costs Formula:

Total Cost =Therapy Cost +Missed Time Cost +Tutoring Cost +Counseling Cost?

TC1 = TC2 + MTC + TC3 + CC

Where:

• TC1 = Total Cost
• TC2 = Therapy Cost
• MTC = Missed Time Cost
• TC3 = Tutoring Cost
• CC = Counselling Cost

Therapy Costs: Estimated at SGD 50–100/session, averaging SGD 600 annually [1]. And this might not even be practically used and most Asians don't seek mental health support. This can be diverted to grocery and even vices.?

Missed Time Costs: Based on SGD 10/hour for 100 hours/year of family time [2]. It's really hard to put a dollar value to missed child graduation and family events, but based this easily among all 3 examples.?

Tutoring Costs: Supplemental education for children due to absentee parenting [2]. The same with Therapy cost, this might be diverted to other expenses like grocery and even vices. But the child education support might be given to the remaining parent or grandparents.?

Counseling Costs: Relationship counseling for left-behind families [1]. This might be in the form of financial bribery in some cases like giving money to relatives to help out with the family. While most Filipino culturally can cope-up with natural and even political disasters this is amplified more by being away.?

Net Benefits

Net Benefit Formula: Net Benefit=Total Benefits?Total Costs

NB = TB - TC

Net Benefits: I was surprised to see that the Domestic Helper in the end was almost the same with the opposite of the spectrum. Once you get down to the intangibles, everyone is equally impacted. As for the Median income it resulted in a negative. While it's not economically true, it will make you think twice about travelling overseas to work or just stay in your home country.?

If you're single or not supporting anyone, this might be advantageous to you in the end. As the Emotional strain is limited only to yourself and your personal relationship(work maybe). ON the downside I have seen Domestic Helpers not going home for 3-5 years, in several cases a parent or spouse died as it was impractical to go home and spend that money for travel to the? family(especially during the pandemic).???

Real-Life Impacts of Family Separation

1. Marital Strain Leading to Separation - One in four OFW spouses experiences separation due to prolonged physical absence, leading to emotional distance and eventual marital dissolution [2]. This is part of the risk of being away has real life and prolonged impact on family. How do we put a net value on this?

1. Academic Challenges Among Children - Approximately 40% of children with OFW parents drop out of college due to a lack of parental guidance [2]. When a single parent or grandparents guide kids educationally it becomes next to impossible to sustain. If you add in economical reasons this tends to be more real. Children opting not to go to college as not to burden the overseas parent and ask them to just go home. In some cases heard also of Children going for Drug use and on extreme cases also Suicide(try to put a net value on that?).??

Emotional Distress in Left-Behind Families - Increased anxiety and emotional distress are common among families left behind, especially during crises like COVID-19 [1]. The pandemic was global but imagine this scenario playing out for decades to Overseas Filipino workers in the last 50 years. If you say you can't survive the physical aspect of being away from family, let's flip it on the other end of the family that were left behind. In most cases workers ask if it's still worth it and still end up saying “Yes” despite the pain or suffering and endure as the alternative is even worst.

Hourly Social Cost Formula:

Cost Per Hour Formula: Total Cost / 2080 Hours = Annual Working Hours cost

Cost per Hour = TC / 2080 hours

Key Insights

1. For Domestic Helpers (SGD 800/month): Low social costs and free living expenses make this a practical choice for those seeking stability with minimal expenses. Net benefit: PHP 302,580/year (SGD 7,380), Social and Emotional cost/hour: PHP 53.22 (SGD 1.30).
2. For Median Income Workers (SGD 3,000/month): Substantial financial benefits: PHP -41,000/year or (SGD -1,000) with moderate Social and Emotional costs (PHP 102.50/hour or SGD 2.50/hour).
3. For High-End Professionals (SGD 8,000/month): Financial rewards are significant of PHP 352,600/year (SGD 8,600) but come with higher Social and Emotional costs (PHP 232.60/hour or SGD 5.67/hour).

Conclusion: Balancing Numbers with Realities

The decision to work abroad is more than just a financial calculation, it is in some cases a matter of survival.? This half a century old balancing act between economic gains and emotional costs, has not been studied well enough by the Government, Academe, and other social organizations.?

Corporate and government institutions use Overseas workers as a marketing campaign and tag/brand them as National Heroes contributing to the Economy.? This might be true but not the hero type we are thinking of but a Martyr or Tragic Hero might be more suitable. SO the next time you meet a Filipino(or any Foreign Worker) in the office or on the road.? Behind that great smile is a scientific human specimen of chronic emotional resilience.?

?So for this Filipino workers in Singapore must(in a daily occurrence should):

• Maximize Financial Benefits: Leverage the savings, remittances, and provide career growth.
• Mitigate Social Costs: Stay connected(use social media and budget airlines), plan visits as often as possible), and build your local and international support systems(this does mean drinking beer).
• Think Long Term: Use the experience to build savings and skills for a sustainable future, not just accepting it as due to a limited choice, but a moving forward item.

References

1. Agaton, C. B., & Cueto, L. J. (2021). Learning at home: Parents’ lived experiences on distance learning during COVID-19 pandemic in the Philippines. International Journal of Evaluation and Research in Education (IJERE), 10(3), 901–911. https://doi.org/10.11591/ijere.v10i3.21136
2. Fabella, V. K. (2014, October 6). OFW experience: At what cost to the family? The Philippine Star. Retrieved from https://www.philstar.com https://www.philstar.com/opinion/2014/10/06/1376935/ofw-experience-what-cost-family
3. MSIG Singapore. (n.d.). How Much Is A Maid's Salary in Singapore? Retrieved from https://www.msig.com.sg/lifestyle-library/how-much-maids-salary-singapore
4. Philippine Overseas Employment Administration. (2020). OFW statistical reports. Retrieved from https://www.poea.gov.ph https://psa.gov.ph/statistics/survey/labor-and-employment/survey-overseas-filipinos
5. Singapore OFW. (2020, March). What is the Monthly Salary of a Filipino Housemaid in Singapore? Retrieved fromhttps://singaporeofw.com/salary-filipino-housemaid/

A Little Note from Me: While I’m all about sharing and caring, it’s important to note that the views and opinions I’ve expressed here are purely my own. They aren't reflective of any official stance from Boldr or its affiliates. Yep, I’m the Head of CS at Boldr, and I love my job, but this write-up isn’t on their behalf. This is just me, sharing my thoughts and experiences in hopes of sparking some inspiration and conversation. Please keep in mind that this is for informational purposes only — not professional advice. So, as you take in these insights, remember that your choices and actions are your own. Let’s keep the dialogue open and the ideas flowing!