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Work Permit (Foreign Worker) - Levy Payments

Foreign Worker Levy

The Foreign Worker Levy, commonly known as ‘levy’ is a pricing mechanism to regulate the number of foreign manpower in Singapore.

Who should pay for Foreign Worker Levy?

Employers are required to pay Foreign Worker Levy for their Work Permit holders. The levy liability will start from the day the Temporary Work Permit or Work Permit is issued, whichever is earlier. And it ends when the permit is cancelled or has expired.

What is the levy rate?

The following factors will determine the amount of levy to be paid:

  • Worker's qualification
  • Dependency Ceiling (for selected sectors only)

MOM will first look at the worker’s qualifications to decide if the worker is skilled. Workers who possess relevant academic or skills-based test qualifications and certificates, will be classified as skilled workers.

For construction, process & marine sectors:
Employers pay the Foreign Worker Levy according to the qualification of these workers.

For manufacturing & service 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 230 7.57
Unskilled 330 10.85
Tier 2: Above 25% to 50% of the total workforce Skilled 330 10.85
Unskilled 430 14.14
Tier 3: Above 50% to 60% of the total workforce Skilled 500 16.44
Unskilled
Note to employers in manufacturing sector:
Employers in this sector are entitled to skilled levy rates for their foreign workers, up to 50% of the total workforce.

 
  

Levy rate ($)
Sector Dependency Ceiling Segmentation Worker category Monthly *Daily
Services Basic Tier / Tier 1: Up to 15% of the total workforce Skilled 270 8.88
Unskilled 370 12.17
Tier 2: Above 15% to 25% of the total workforce Skilled
 380 12.50
Unskilled 480 15.79
Tier 3: Above 25% to 45% of the total workforce Skilled 550 18.09
Unskilled
Note to employers in service sector:
Employers in this sector are entitled to skilled levy rates for their foreign workers, up to 25% of the total workforce.

 
  

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

 1 local full-time worker to 7 Foreign Workers Higher Skilled (1) and on MYE 280 9.21
Basic Skilled (2) and on MYE 400 13.16
Higher Skilled, Experienced and exempted from MYE (3) 550 18.09
Basic Skilled, Experienced and exempted from MYE (3) 650 21.37
Process 1 local full-time worker to 7 Foreign Workers Skilled and on MYE 230 7.57
Unskilled and on MYE 330 10.85
Experienced & exempted from MYE (3) 500 16.44

 
  

Levy rate ($)
Sector Dependency Ceiling (DC) Worker category Monthly *Daily
Marine 1 local full-time worker to 5 Foreign Workers Skilled 230 7.57
Unskilled 330 10.85

* 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.


Paying for Foreign Worker Levy

Employers will need to pay Foreign Worker Levy using General Interbank Recurring Order (GIRO) every month. With GIRO, levy will be deducted automatically from the bank account.

The levy is deducted on the 17th of the month or the next working day if it falls on a Saturday, Sunday or a public holiday. The employer must ensure that there are sufficient funds in the bank for the deduction.

If GIRO is not available, employer must make payment of levy by the 14th of the month. So long as there is no full payment, interest for non or late payment will be charged. Read up on other penalties for late payment.

How to join GIRO?

You must complete the Application for Interbank GIRO (Foreign Worker Levy Payment) and send it to Robinson Road P.O. Box 231, Singapore 900431.


Check your levy online

Companies can view their levy bills online using Internet Foreign Worker Levy Billing System (iFWLB) system. Please follow these steps to get an iFWLB account:

Step 1:

First, the following conditions must be fulfilled before opening an account:

  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.

Step 2:

Appoint a Singaporean Citizen or Singapore Permanent Resident to register for the iFWLB account. This person will be appointed a “super user” role.

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

Step 3:

Upon successful registration, we will send a notification to the email address provided during the registration. The user can log on to iFWLB now using SingPass to carry out levy transactions.


Non-payment of Foreign Worker Levy

If full 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

Note:
It takes up to five working days to update your levy payment. Any application made before that time may be rejected. If you need to update your payment records urgently, send us a clear copy of your payment receipt and contact details using iSubmit. Please select option 9: Levy Matters under the Request Type. You may proceed to apply after two working days.

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.
* Vacation leave refers to the period where foreign worker travels to another country other than the country of origin for his/her own leisure. During the trip, he/she shall not engage in any form of employment, whether paid or unpaid. 

How to apply

Applications for waiver of Foreign Worker Levy can be made:

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.

Last updated on 04 January 2013 12:21:28