Work Permit (Foreign Worker) - Levy Payments

Foreign Worker Levy

Employers are required to pay a monthly Foreign Worker Levy which is a pricing mechanism to regulate the number of foreign workers in Singapore. The levy liability starts from the day the Work Permit is issued and ceases upon expiry or cancellation of the Work Permit.

Foreign Worker Levy rates

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.

* 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:

• registered with the Construction Registration of Tradesmen (CoreTrade); or
• issued with trade certifications recognised by the Building and Construction Authority, and who possess at least four years of construction experience in Singapore. 

⁽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 of working experience in the same trade.

Payment of Foreign Worker Levy

Employers are required to pay the monthly Foreign Worker Levy by Inter-Bank GIRO.

The levy charge is due at the end of each month. Employers are given up to 14 days to make payment before the payment is deducted three days later. If it falls on a non-working day, the deduction will be on the next working day. If there are insufficient funds in your bank account for the deduction, interest for late payment will be charged.

Companies that wish to view their levy bills online can register for an Internet Foreign Worker Levy Billing System (iFWLB) account. Before registration, the following conditions must be fulfilled:

1. Have active Work Permit and S Pass holders that have incurred liability in the previous month; and
2. Registered address with Central Provident Fund Board is a Singapore address.

Please register online for iFWLB account. Only Singaporean Citizens and Singapore Permanent Residents may register for an account.

Upon successful registration, the user will be informed of the outcome via email address provided during the registration. The user will be able to log onto the iFWLB immediately using SingPass to carry out levy transactions.

• Login to iFWLB
• Online Registration for a iFWLB account (For *super user only)
• User guide for iFWLB system
• Download FAQs on iFWLB

* Super user refers to one who performs the administrative role for the iFWLB account. Please refer to the user guide for more information on the roles of a super user.

Non-payment of Foreign Worker Levy

If payment of the Foreign Worker Levy is not made on time, the following measures may be taken:

• A late payment penalty will be charged
• Existing Work Permits will be cancelled
• Employer will not be allowed to apply for new Work Permits or renew their existing workers' Work Permits
• Legal proceedings will be taken to recover the unpaid levy liability
• If you, your partners or directors are sole proprietors, partners or directors of other companies, these companies will not be allowed to apply for Work Permits

Waiver of Foreign Worker Levy

Employers may apply for waiver of the levy under these circumstances.

Your foreign worker:

• is on home leave 
  -   Not applicable to Malaysian workers
  -   Levy waiver is capped at a maximum of 60 calendar days per year
• is on vacation leave* of at least seven consecutive days.
  Levy waiver is capped at a maximum of 60 calendar days per year.
• fails to return to Singapore after home or vacation leave
• is on hospitalisation leave
• is under police custody or is housed at the Embassy
• has been granted Singapore Permanent Residence
• is in the harbour-craft industry and is on board a vessel leaving Singapore's port for at least three consecutive days
• is a Malaysian and is serving National Service in his home country for three months.

Applications for waiver of Foreign Worker Levy can be made:

• Online; or
• In person at one of the Central Provident Fund Service Centres.
  -   A copy of the foreign worker’s passport and boarding pass are required

You should apply for the waiver within one year of the end of the month in which the levy was paid. For example, to claim for a levy refund for November 2010 (paid in December 2010), employers must apply before end of December 2011.