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FAQs on levy rebate and levy waiver for business employers

Business employers can find out if you’re eligible for levy rebate and levy waiver, and how you can get them.

Who is eligible for the levy rebate? Do I need to apply for it? When will I receive the pay out?Show

1st round of levy rebate – announced on 6 April 2020

If you are a business employer who has at least paid up to December 2019’s foreign workers’ levy in full (the amount due in January 2020), you will be eligible for a flat rate of $750 for each S Pass or Work Permit holder in your employment as at 29 February 2020.

No application is needed. You can use check and pay levy to check your previous levy payments.

If you have a PayNow Corporate account, you will receive the levy rebate on 21 April 2020.

PayNow Corporate is different from PayNow, which is linked to your NRIC or mobile number.

Employers who have received the payment by PayNow Corporate will be informed by email.

Otherwise, you will receive the payment by cheque from 15 May 2020.

2nd round of levy rebate – announced on 23 April 2020

You will be eligible for a flat rate of $750 for each S Pass or Work Permit holder in your employment as at 1 May 2020 if you do the following:

  • Paid up to December 2019’s foreign workers’ levy in full (amount which was due in January 2020);
    AND
  • Made an online acknowledgement that you will use the levy rebate to provide for the pay and upkeep of your foreign workers during the Circuit Breaker.

The foreign worker levy rebate will be processed and credited as follows:

  • Companies with PayNow Corporate accounts must acknowledge by 8 May 2020 to receive the rebate on 29 May 2020, while those that acknowledge by 22 May 2020 will receive the rebate on 19 June 2020.
  • Companies without PayNow Corporate accounts must acknowledge by 22 May 2020 to receive the payment by cheque from 3 July 2020.

3rd round of levy rebate – announced on 26 May 2020

This is only applicable to business employers that are not in MTI’s permitted list to resume operations on the GoBusiness Portal, and all businesses in the Construction, Marine Shipyard and Process sectors.

You will be eligible for a flat rate of $750 in June 2020 and $375 in July for each S Pass or Work Permit holder in your employment as at 1 June 2020 and 1 July 2020 respectively if you do the following:

  • Paid up to December 2019’s foreign workers’ levy in full (amount which was due in January 2020);
    AND
  • Made an online acknowledgement by 10 June 2020 that you accept the conditions for receiving the levy rebate.

The foreign worker levy rebate will be processed and credited as follows:

  • Companies must acknowledge by 10 June 2020 to receive the rebate in July 2020 and August 2020 respectively. The exact date for the disbursement of the levy rebate will be specified later.

I received the 1st round of rebates for my workers in employment as of 29 February 2020. I employed new workers from March 2020 onwards. Will the levy rebate be given for subsequent rounds for these new workers?Show

Yes, your company’s new workers will be counted in subsequent rounds of rebate, assuming you meet other eligibility criteria.

You have 10 workers in employment as at end of December 2019, and their levies were fully paid.

Subsequently, 2 workers were employed in March 2020, and 4 workers were employed in April 2020. The 10 existing workers and 6 new workers were all in employment as of 1 May 2020, and your company has submitted the online acknowledgement.

You will receive the 2nd round of levy rebate for all 16 workers.

I'm allowed to resume operations in June 2020. Do I qualify for the 3rd round of levy rebate as announced on 26 May 2020?Show

No. You don’t qualify.

I am only allowed to resume operations in July 2020. Will I qualify for the 3rd round of levy rebate as announced on 26 May 2020?Show

You will only qualify for the June 2020 levy rebate (and waiver for May 2020 levy waiver payable in June 2020) as announced on 26 May 2020.

However, you will need to submit an online acknowledgement by 10 June 2020 that you agree to the conditions in order to receive the June 2020 levy rebate (payable in July 2020).

For business reasons, I decided not to resume operations even though my company is in MTI's permitted list to resume operations. Will I qualify for 3rd round of levy rebate as announced on 26 May 2020?Show

No. You will not qualify for the 3rd round of levy rebate (and levy waiver).

Only companies that are not in MTI’s permitted list to resume operations on the GoBusiness Portal and all companies in construction, marine shipyard and process sectors can receive the levy rebate (and levy waiver) that was announced on 26 May 2020.

Why are FDWs employers not eligible for the levy rebate and levy waiver?Show

There is no FDW levy rebate or waiver during this period. However, households are supported on multiple fronts. The Resilience Budget tripled the Care and Support – Cash payout, and parents with at least one Singaporean child will each receive an additional $300 in cash. The recent Solidarity Budget also gives all adult Singaporeans a cash payout of at least $600. Together, the Resilience and Solidarity Budgets will give cash payouts of up to $1,600 per individual in 2020.

Households can read about the Care and Support Package for more details.

How do I register for PayNow Corporate? When must my PayNow Corporate account be ready in order to receive the levy rebate?Show

For eligible business employers, you should sign up for PayNow Corporate as soon as possible, in order to receive the levy rebate expeditiously.

You can sign up for PayNow Corporate online or by mobile banking. When signing up, please ensure that you link your company’s UEN without suffix to your business bank account.

If your UEN is Use this
202012345X 0A1 202012345X
202012345X 002 202012345X
202012345X 202012345X

Your bank must approve your PayNow Corporate account at least one day before the date of disbursements.

For 1st round of levy rebate disbursement (as announced on 6 Apr 2020) – By 29 Apr 2020 to receive on 30 Apr 2020.

For 2nd round of levy rebate disbursement (as announced on 23 Apr 2020) – By 28 May 2020 to receive on 29 May 2020; By 18 Jun to receive 19 Jun 2020.

The time each bank requires to approve your PayNow Corporate account differs. Hence, you are strongly encouraged to have it set up as early as possible.

If you experience difficulty in signing up, please approach your bank for more information.

Participating banks Website
DBS Bank www.dbs.com.sg/corporate/paynow
Citibank www.citibank.com.sg/gcb/otherservices/payments-transfers.htm
HSBC www.business.hsbc.com.sg/en-sg/hsbcnet/paynow
Maybank www.maybank2u.com.sg/en/business/local-enterprise/payments-remittances/payments/paynow-corporate.page
OCBC www.ocbc.com/business-banking/accounts-and-services/paynowcorporate.html
Standard Chartered Bank www.sc.com/sg/commercial/paynow
United Overseas Bank www.uob.com.sg/corporate/transaction-banking/cash-management-services/paynow-corporate.page
BOC www.bankofchina.com
ICBC http://singapore.icbc.com.cn

I have set up my PayNow Corporate Account but still haven't received the levy rebate in my account even though the date of disbursement has passed. What should I do?Show

You should do the following checks:

  1. Determine if your company is eligible for the levy rebate.

    Your company would have received an email notification if it is eligible. You can also submit an enquiry online for the exact amount of rebate you will be receiving.
  2. Check all your company’s corporate bank accounts.

    The levy rebate will be disbursed to the account registered for PayNow Corporate. This may not be the same account through which you received your payout for the Jobs Support Scheme or which you use to pay the foreign worker levy.

Upon successful disbursement, the bank statement will reflect the transaction as “Govt-Payout” and the transaction date will either be 21 April 2020, 30 April 2020, 29 May 2020 or 19 June 2020.

If you have confirmed your company did not receive the levy rebate via PayNow Corporate, there are 2 possible reasons why this is so.

  • Your company’s PayNow Corporate is linked to the UEN with suffix.
    We will only disburse the levy rebate via PayNow Corporate to your company’s bank account if it is linked with the company’s UEN without suffix.
    UEN without suffix 202012345X
    UEN with suffix 202012345X 001
  • Your company’s PayNow Corporate was not registered in time for the disbursement to be made.

If you wish to know when your company’s PayNow Corporate was registered, you will need to check with your bank.

Eligible employers who did not receive the levy rebate via PayNow Corporate will receive it via cheque. The cheque will be posted to your company’s ACRA registered address from 15 May 2020 (for 1st round of levy rebate as announced on 6 April 2020) and from 3 July 2020 (for 2nd round of levy rebate as announced on 23 April 2020)..

Who is eligible for the levy waiver and do I need to apply for it?Show

For the first 2 rounds of levy waiver, all business employers will receive a waiver of the March 2020 levy (due to be paid in April 2020) and the April 2020 levy (due to be paid in May 2020).

No application for the levy waiver is needed.

For the 3rd round of levy waiver, only employers that are not in MTI’s permitted list to resume operations on GoBusiness Portal and those in the construction, marine shipyard and process sectors will receive:

  • 100% waiver of May 2020 levy (due to be paid in June 2020)
  • 50% waiver of June 2020 levy (due to be paid in July 2020)

No application for the levy waiver is needed.

Business employers are not required to make any payment for the waived levies.

The waiver for the March and April 2020 levy (payable in April and May 2020 respectively have been updated in check and pay levy. For employers that are eligible to receive the waiver for May 2020 levy (payable in June 2020), and June 2020 levy (payable in July 2020), the waiver will be updated in check and pay levy by 14 June 2020 and 14 July 2020 respectively.

Why is MOM requiring business employers to submit an acknowledgement to qualify for the 2nd round of foreign worker levy rebate (as announced on 23 Apr 2020)?Show

The acknowledgement is intended to bring to employers’ attention their obligation to treat their foreign workers just as fairly as their local workers, and to use the significant support provided by the Government to pay for the salary, upkeep and well-being of their more vulnerable foreign workers during this period.

We appreciate the co-operation of most employers who have understood and fulfilled their obligations to both their local and foreign workers.

However, MOM has received feedback that a small number of employers have been irresponsible or unfair towards their workers. If the feedback is found to be substantiated, the errant employers will be denied future employment support (including Jobs Support Scheme and Foreign Worker Levy rebate and waiver) and may have their work pass privileges suspended.

Do I have to pass on the levy rebates received to my workers?Show

In view of the support given to employers, employers should provide salary support, including payment for upkeep and well-being of their more vulnerable foreign employees:

  • Foreign employees who continue to work full-time must be paid their prevailing salaries.
  • For foreign employees who could not work, employers must continue to be responsible for their maintenance and upkeep and work out mutually agreed salary and leave arrangements with the unions and employees, especially for the low-wage Work Permit holders who may need more support.

Why do employers need to fill up an acknowledgement form to qualify for the 2nd round of foreign worker levy rebate, but not for the Jobs Support Scheme?Show

Companies that reduce their local employees’ salaries or put them on no-pay leave will receive correspondingly lower payouts in subsequent tranches of the Jobs Support Scheme, but there is no similar mechanism for the Foreign Worker Levy rebate. The financial support to employers is to help them continue paying the salaries of our migrant workers, as part of Singapore’s commitment to look after their livelihoods and welfare during this difficult period. To ensure consistency of understanding and practice, we will require employers to make an acknowledgement.

Why is MOM imposing conditions on employers for the 3rd round of foreign worker levy rebate (as announced on 26 May 2020)?Show

The Government will require the continued support from employers to ensure that migrant workers in the dormitories are provided for and can return to work safely. There is also a need to ensure that manpower planning is optimised to ensure business continuity and prevent disruptions to business operations that are allowed to operate. To ensure consistency of understanding of the support needed, we will require employers to make an online acknowledgement by 10 June 2020 that they accept the conditions of receiving the foreign worker levy rebate.

What conditions must I accept to receive the 3rd round of foreign worker levy rebate?Show

Only companies that are not in MTI’s permitted list to resume operations on the GoBusiness Portal and all companies in construction, marine shipyard and process sectors are eligible to receive the levy rebate. In addition, they must accept the following conditions:

  • Allow MOM to move Work Permit Holders and S Pass holders who are cleared of COVID-19 from their existing dormitory to a cleared dormitory, to facilitate the workers’ returning to work. Employers may be required to terminate the leases with their current dormitory operator to recontract with a new dormitory operator; and
  • Allow MOM to second or transfer their Work Permit Holders and S Pass Holders to work at another company that needs workers, but whose workers are in dormitories that have not been cleared, if directed by MOM.

Employers must make an online acknowledgment to accept the conditions by 10 June 2020.

Why is the Government not extending the support for employers of foreign workers for a longer period?Show

We introduced the foreign worker levy waiver and rebate during Circuit Breaker to help defray the costs for employers of foreign workers who cannot work and help businesses retain their essential workforce so that they can restart or scale up again once it is possible to do so.

However, these support measures cannot be extended indefinitely. As the Singapore economy restarts, we will gradually taper the support provided. Businesses that expect to restart later are encouraged to reassess their foreign manpower needs and adjust their workforce accordingly.

Why do companies in the construction, marine shipyard and process sectors qualify for full support, even if they are able to open?Show

The construction, marine shipyard and process (CMP) sectors will have a slower and more controlled opening than the rest of the economy. These sectors also make up most of the foreign workers in dormitories, which MOM needs to clear as safe before they can resume work. Companies will open on a project-by-project basis and will likely be operating only partially for several more months. Almost all of these companies will not restart in June and July.

My company is unable to resume operations even though we are in the list of businesses that are permitted to resume according to the GoBusiness portal. Am I eligible for the levy waiver and levy rebate?Show

MTI evaluates the timeline that businesses can resume based on the health situation and whether your company has submitted the necessary documents and complied with the requirements for Safe Management Measures. If your company was permitted to resume business but was suspended subsequently because you failed the strict checks or did not comply with the Safe Management requirements, your company will not be eligible for the levy waiver and levy rebate.

My company was initially not allowed to resume operations after Circuit Breaker but was subsequently allowed to do so. Am I eligible for the levy waiver and levy rebate?Show

If your company was not allowed to resume operations at the start of June, but subsequently allowed to resume operations in the same month, you will be eligible for a full waiver of the levies due in June and the $750 levy rebate in June, but will not be eligible for the 50% waiver of levies due in July and $375 levy rebate in July.

If your company is not allowed to resume operations at the start of July, but is subsequently allowed to resume operations in the same month, you will be eligible for:

  • A levy rebate of $750 in June, and $375 in July for each S Pass or Work Permit Holder employed as at 1 June and 1 July respectively; and
  • 100% waiver for levy due in the month of June, and 50% waiver for levy due in the month of July.

I have more questions on the levy waiver and levy rebate. What should I do?Show

If you cannot find the answers you need in our FAQs on levy waiver and levy rebate, you can submit your questions online.

You can also submit a request to find out how much your company received for the first and 2nd round of levy rebates (as announced on 6 and 23 April 2020 respectively).

For the 3rd round of levy rebate (applicable only to employers that are not in MTI’s permitted list to resume operations on the GoBusiness Portal and those in the construction, marine shipyard and process sectors), the amount your company will receive will only be available at a later date.