Levies & quotas for hiring Foreign Workers
The Foreign Worker Levy is a pricing mechanism to control the number of Foreign Workers (including Foreign Domestic Workers) in Singapore. While they are not required to pay Central Provident Fund (CPF) contributions for Foreign Workers, employers are liable to pay monthly levies to hire employees who hold Work Permits or S Passes.
If a Foreign Worker on the Foreign Worker Levy Scheme is subsequently granted Singapore Permanent Resident status, he will be placed on the CPF scheme. This will take effect from the day he is granted Permanent Resident status.
For your information
- Read here to estimate the quota for Foreign Workers that apply to your industry and your company.
- From 1 July 2011, changes to a company’s workforce profile will automatically be taken into account in the computation of a company’s monthly levy bill. Employers are no longer required to convert their foreign workers between levy tiers.
Foreign Worker levies applicable to Work Permit holders
Employers who hire skilled Work Permit holders can enjoy lower levy rates, subject to the Dependency Ratio of their industry. In order for lower levy rates to apply, i.e. in order for a Work Permit holder to be considered skilled, the Work Permit holder must possess relevant academic or skills-based test qualifications and certificates.
|
|
|
Levy Rate ($)
|
| Sector |
Dependency Ratio |
Worker Category |
Monthly |
*Daily |
| Manufacturing |
Basic Tier / Tier 1: Up to 30% of the total workforce |
Skilled |
190 |
6.25 |
| Unskilled |
290 |
9.54 |
| Tier 2: Above 30% to 50% of the total workforce |
Skilled |
270 |
8.88 |
| Unskilled |
370 |
12.17 |
| Tier 3: Above 50% to 65% of the total workforce |
Skilled (1) |
450 |
14.80
|
| Unskilled (1) |
Construction
|
1 local full-time worker to 7 Foreign Workers |
Higher Skilled (2)and on MYE (4) |
200 |
6.58 |
| Basic Skilled (3)and on MYE (4) |
300 |
9.87 |
| Experienced and exempted from MYE (5) |
450 |
14.80 |
| Marine |
1 local full-time worker to 5 Foreign Workers |
Skilled |
190 |
6.25 |
| Unskilled |
300 |
9.87 |
| Process |
1 local full-time worker to 7 Foreign Workers |
Skilled and on MYE (4) |
180 |
5.92 |
| Experienced & exempted from MYE (5) |
380 |
12.50 |
| Unskilled |
300 |
9.87 |
| Services |
Basic Tier / Tier 1: Up to 20% of the total workforce |
Skilled |
210 |
6.91 |
| Unskilled |
310 |
10.20 |
| Tier 2: Above 20% to 30% of the total workforce |
Skilled
|
330 |
10.85 |
| Unskilled |
430 |
14.14 |
| Tier 3: Above 30% to 50% of the total workforce |
Skilled (1) |
470 |
15.46 |
| Unskilled (1) |
* Daily levy rate only applies to Work Permit holders who did not work for a full calendar month. From 1 January 2011, the daily levy rate is computed based on the following: (Monthly levy rate x 12) / 365 = rounding up to the nearest cent.
(1) Skilled workers belonging to the categories of above 50% to 65% of the total
workforce in the Manufacturing Sector and above 30% to 50% of the total workforce in the Service Sector are not eligible for the skilled levy rates.
(2) Higher skilled workers in the Construction Sector refer to workers who are:
(3) Basic skilled workers refer to workers who possess SPM and/or Building and Construction Authority’s Skills Evaluation Certificate (SEC) or Skills Evaluation Certificate (Knowledge) i.e. SEC(K).
(4) The MYE allocation quota for Construction and Process Sectors will be reduced by 10% from 1 July 2011.
(5) To be exempted from MYE, the Foreign Worker must have at least two years' working experience in the Construction Sector.
Foreign Worker levies applicable to Foreign Domestic Workers
Details about levies applicable to Foreign Domestic Workers can be found here.
Foreign Worker levies applicable to S Pass holders
| |
|
|
Levy rates ($) |
| Sector |
Dependency Ratio |
Worker Category |
Monthly |
*Daily |
All sectors
|
Basic Tier / Tier 1: Up to
15% of the total workforce (1) |
Skilled |
160 |
5.27 |
| Tier 2: Above 15% to 25% of the total workforce (1) |
Skilled |
250 |
8.22 |
* Daily levy rate only applies to S Pass holders who did not work for a full calendar month. From 1 January 2011, the daily levy rate is computed based on the following:
(Monthly levy rate x 12) / 365 = rounding up to the nearest cent.
(1) For all sectors, S Passes' Dependency Ceiling (DC) of 25% will be counted within the Work Permits' DC.
Levy bill computation
Company that is under the tiered system may refer to the 
Guidelines on Levy Bill Computation for an estimate breakdown of the levy bill.
Skills Development Levy
Under the Skills Development Levy Act, every employer is required to pay a monthly Skills Development Levy (SDL) for his foreign employees, i.e. Work Permit and S Pass holders.
