The foreign worker levy in Singapore varies depending on factors such as the industry and the skill level of the worker. The levy can range from SGD 300 to SGD 950 per month.
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The foreign worker levy in Singapore is a financial obligation imposed on employers who hire foreign workers, with the purpose of regulating the inflow of foreign labor and incentivizing businesses to hire local talent. The levy amount varies based on factors such as the industry and the skill level of the worker. It is important for employers to understand and adhere to the levy requirements in order to manage their workforce cost effectively.
Here are some key details and interesting facts regarding the foreign worker levy in Singapore:
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Levy amounts: The levy can range from SGD 300 to SGD 950 per month, depending on the sector and skill level of the foreign worker. Different levy tiers are in place to categorize workers based on their skills and qualifications.
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Tiered structure: Singapore has a tiered structure for the foreign worker levy, which is designed to encourage companies to hire locals and skilled foreign workers. Higher levy rates are applied to lower-skilled workers, while lower rates are applied to higher-skilled workers.
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Dependency ratio: The levy rates are linked to the dependency ratio ceilings (DRC). The DRC determines the maximum ratio of foreign workers that a company can employ, relative to its total workforce. As the DRC decreases, higher levy rates are imposed on companies that exceed the allowed ratio of foreign workers.
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Sector-specific levies: In addition to the tiered structure, certain industries have specific levy frameworks. These industries include construction, marine shipyard, and process sectors. The construction sector levy is further differentiated based on whether the worker is skilled or unskilled.
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Skill development levies: Employers in the manufacturing and service sectors who hire Work Permit holders may be eligible for skill development levies. These levies aim to support workforce training and capability development within the company.
To provide a visual representation of the tiered levy structure, here is a table showcasing a simplified example:
| Skill Level | Monthly Levy (SGD) |
|---|---|
| Skilled | 300 |
| Semi-skilled | 600 |
| Unskilled | 950 |
In the words of former Singapore Prime Minister Lee Kuan Yew, “If Singapore is a nanny state, then I am proud to have fostered one.” This quote highlights the government’s proactive approach in implementing policies, such as the foreign worker levy, to shape the nation’s workforce and maintain a balanced labor market.
Please note that the information provided above is based on current knowledge and may be subject to change. It is always advisable to refer to the official government sources or consult relevant authorities for the most up-to-date and accurate details regarding the foreign worker levy in Singapore.
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The Singaporean government has announced an extension of the foreign worker levy waiver and rebate until next year, offering continued financial support to businesses in the construction, marine, shipyard, and process sectors. This initiative will also benefit all foreign workers, including migrant domestic workers. Over $400 million will be distributed under the jobs support scheme, providing crucial aid to struggling businesses. The decision has been met with gratitude from various sectors, including a local theater company, who emphasize the importance of this support for their survival. Employers in the employment agency industry will also benefit from the extended levy rebate. A review by the Ministry of Manpower will determine the future of the levy rebate in March 2022.
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Levy Rates For S Pass & Work Permit For All Sectors
Sector / Pass Types Tier Levy Rates ($) (R1 / R2) W.E.F. 01-Jul-2021 S Pass Basic Tier Service: $330 $330 Tier 2 Construction: Manufacturing: Marine: Process: $650 $650 $650 $650 Construction Work Permit Holder (WPH) Basic Tier $300/$700
The foreign worker levy in Singapore depends on the percentage of foreign workforce in your business. If foreign employees make up 10% of your workforce, you are required to pay a monthly levy of $330 for each S Pass holder. However, if S Pass holders exceed 10% of your workforce, you have to pay $650 for each S Pass employee. Employers hiring migrant workers are required to pay the SDL in addition to the Foreign Workers Levy (FWL). The levy rate for the first foreign domestic worker (FDW) employed is $300 per month, while for subsequent FDW(s) employed, the levy rate is $450 per month.
Depending on the percentage of foreign workforce in your business, you also have to pay a levy of either $330 or $650. If foreign employees make up 10% of your workforce, you are required to pay a monthly levy of $330 for each S Pass holder. However, if S Pass holders exceed 10% of your workforce, you have to pay $650 for each S Pass employee.
The SDL is set at a minimum of $2 (for an employee earning less than $800 a month) and capped at $11.25 (for an employee earning more than $4,500 a month). Employers hiring migrant workers are required to pay the SDL in addition to the Foreign Workers Levy (FWL).
* The levy rate for the first foreign domestic worker (FDW) employed, not on concession, is $300 per month. For subsequent FDW (s) employed, not on concession, the levy rate is $450 per month.