The Real Cost of Answering Your Phone
Every business needs to answer its phone. The question is how much you are willing to spend, and what you get for that spend. Here is a breakdown of the actual costs for each phone answering option available to Singapore businesses.
Option 1: Full-Time Receptionist
A full-time receptionist in Singapore costs SGD 2,200 to SGD 3,500 per month in base salary, depending on experience and language skills. Add employer CPF contributions (17 percent), and the cost rises to SGD 2,574 to SGD 4,095 per month.
Then add the hidden costs. Annual leave coverage (you need someone to cover 14+ days per year). Medical leave coverage. Training time. Office space and equipment. Recruitment costs when they leave (and receptionist turnover in Singapore is high).
Realistic total cost: SGD 3,000 to SGD 5,000 per month.
What you get: human warmth, institutional knowledge, ability to handle complex situations. What you do not get: after-hours coverage, weekend coverage, simultaneous call handling, or multilingual capability (unless you hire specifically for it).
Option 2: Traditional Answering Service
Answering services in Singapore typically charge on a per-call or per-minute basis. Rates range from SGD 2 to SGD 5 per call or SGD 0.80 to SGD 2.00 per minute.
For a business receiving 30 calls per day, the monthly cost at SGD 3 per call is approximately SGD 1,980 (30 calls x 22 working days x SGD 3). If you add after-hours coverage, the cost increases because you are paying for more calls.
What you get: a human voice, 24/7 availability (with the right plan), message taking. What you do not get: appointment booking, calendar access, detailed business knowledge, consistent quality, or multilingual support in all cases.
Option 3: IVR System
An IVR (interactive voice response) system costs SGD 50 to SGD 200 per month for a basic cloud-based service. More advanced systems with custom routing cost SGD 200 to SGD 500 per month.
What you get: cheap, 24/7 operation, basic call routing. What you do not get: conversational interaction, caller satisfaction, or actual call handling. IVR systems have the highest call abandonment rates of any option.
Option 4: AI Receptionist
An AI receptionist service costs vary by provider and call volume. The cost typically includes a monthly service fee plus variable infrastructure costs based on usage.
What you get: 24/7 coverage, multilingual capability (English, Mandarin, Bahasa), real-time appointment booking, detailed business knowledge, simultaneous call handling, call transcripts and analytics. What you do not get: human empathy for emotionally complex calls (though the AI transfers these to humans).
The True Comparison
Comparing these options purely on monthly cost is misleading. The right comparison is cost versus revenue impact.
A full-time receptionist at SGD 4,000 per month who cannot answer after-hours calls still leaves you losing SGD 9,000+ per month in missed evening bookings.
An answering service at SGD 2,000 per month that takes messages but does not book appointments still loses you the callers who book with your competitor while waiting for a callback.
An AI receptionist that costs less than either of these options but captures after-hours bookings, handles multiple simultaneous calls, and books appointments in real time delivers a net positive from day one.
Our AI receptionist pricing guide provides detailed cost comparisons, and our ROI calculator helps you put numbers specific to your business.
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