regular textmedium textlarge text
Print This Page

Levies & quotas for hiring Foreign Workers

The Foreign Worker Levy, commonly known as 'levy' is a pricing mechanism to regulate 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

Foreign Worker levies applicable to Work Permit holders

Your sector and the following factors will determine the amount of levy to be paid:

  • Worker's qualification*
  • Dependency Ceiling
  • Workers on Man–Year Entitlement (MYE) or MYE-waiver scheme

* MOM will consider the worker as skilled if he or she possesses relevant academic or skills-based test qualifications and certificates.

For manufacturing & services sectors:
Workers will be further assigned to different tiers within the company Dependency Ceiling limits. Read up on how this works.

The following illustrates the levy you pay for each foreign worker.

 
 

Levy rate ($)

Sector Dependency Ceiling Segmentation Worker category Monthly *Daily
Manufacturing Basic Tier / Tier 1: Up to 25% of the total workforce Skilled 250 8.22
Unskilled 370 12.17
Tier 2: Above 25% to 50% of the total workforce Skilled 350 11.51
Unskilled 470 15.46
Tier 3: Above 50% to 60% of the total workforce Skilled 550 18.09
Unskilled 650 21.37

 
 

Levy rate ($)

Sector Dependency Ceiling Segmentation Worker category Monthly *Daily
Services Basic Tier / Tier 1: Up to 10% of the total workforce Skilled 300 9.87
Unskilled 420 13.81
Tier 2: Above 10% to 25% of the total workforce Skilled
400 13.16
Unskilled 550 18.09
Tier 3: Above 25% to 40% of the total workforce Skilled 600 19.73
Unskilled 700 23.02

Note:

Work Permit holders in the services sector can qualify as skilled workers under the PDFMarket-Based Skills Recognition Framework (MBF) if they earn a fixed monthly salary of at least $1,600 AND have worked in Singapore for at least four years. Employers can update their worker's salary via WPOL.

 
 

Levy rate ($)

Sector Dependency Ceiling (DC) Worker category Monthly *Daily
Construction

1 local full-time worker to 7 Foreign Workers Higher Skilled (1) & on MYE 300 9.87
Basic Skilled (2) & on MYE 550 18.09
Higher Skilled & exempted from MYE (3) 700 23.02
Basic Skilled & exempted from MYE (3) 950 31.24
Process 1 local full-time worker to 7 Foreign Workers Skilled & on MYE 300 9.87
Unskilled & on MYE 450 14.80
Skilled & exempted from MYE (3) 600 19.73
Unskilled & exempted from MYE (3) 750 24.66

Note:

From 1 August 2014, Work Permit holders in the construction sector who earn a fixed monthly salary of at least $1,600 AND have worked in the construction sector in Singapore for at least six years will be upgraded to Higher-Skilled status. For more information, please refer to these PDFFAQs.

 
 

Levy rate ($)

Sector Dependency Ceiling (DC) Worker category Monthly *Daily
Marine 1 local full-time worker to 5 Foreign Workers Skilled 300 9.87
Unskilled 400 13.16

* 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) Higher skilled workers in the Construction sector refer to workers who are:

(2) 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).

(3) To be exempted from MYE, the foreign worker must have at least two years of working experience in Singapore. This must be relevant to the sector they are employed under.

Where renewal of Work Permits involves change between Prior Approval to MYE waiver option or vice versa, the change in levy rate will be effective on the 1st of following month from the date of expiry of the permit.

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 rate ($)
Sector Dependency Ceiling Segmentation Monthly *Daily
Services
Basic Tier / Tier 1: Up to
10% of the total workforce (1)
315 10.36
Tier 2: Above 10% to 15% of the total workforce (1) 550 18.09

    Levy rate ($)
Sector Dependency Ceiling Segmentation Monthly *Daily
All (excluding Services)
Basic Tier / Tier 1: Up to
10% of the total workforce (1)
315 10.36
Tier 2: Above 10% to 20% of the total workforce (1) 550 18.09

* 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' sub-Dependency Ceiling (DC) will be counted within the Work Permits' DC.

Levy bill computation

Company that is under the tiered system may refer to the pdfGuidelines on the Calculation of Quota & Levy Bill 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, e.g. Work Permit and S Pass holders.

Last updated on 30 June 2014 07:08:11