What is theΒ Foreign Worker Levy (FWL) in Singapore
If you employΒ Work Permit or S Pass holders you may be limited by a quota for your industry. You will also have to pay aΒ monthly levy for each Work Permit or S Pass holder.
The foreign worker levy, commonly known as βlevyβ, is a pricing mechanism to regulate the number of foreign workers in Singapore.
The levy liability will start from the day the Temporary Work Permit, Work Permit or S Pass is issued, whichever is earlier. It ends when the permit is cancelled or expires.
As an employer, you donβt have to pay Central Provident Fund (CPF) contributions for foreign workers. However, you mustΒ pay a monthly levy for Work Permit and S Pass holders in Singapore.
Levy rate and quota
TheΒ Foreign Worker LevyΒ you pay generally depends on two factors:
- The workerβs qualifications.
- The number of Work Permit or S Pass holders hired.
The FWL quota and rate vary according to the following respective sectors:
Note:
- Levy rates are regularly reviewed and adjusted as required. See the upcoming levy rates announced in Budget 2020
Workerβs qualifications
Workers who possess relevant academic or skills-based test qualifications and certificates will be considered asΒ higher-skilled workers and qualify forΒ higher skilled worker levy.
Dependency ratio ceiling
A dependency ratio ceiling, or quota, is the maximum ratio of foreign workers to the total workforce that a company in a given sector can employ.
Higher-skilled worker levy
Upgrading your worker to higher-skilled status will reduce your levy bill. The exact levy rate depends on your sector.
You pay aΒ lower levyΒ for workers with higher-skilled status.
Criteria for higher-skilled worker levy by sector
The requirements your worker must meet to be on the higher-skilled levy rate are different for each sector:
Apply for higher-skilled worker levy
For construction sector
Your worker can get higher-skilled status by completingΒ one of the four upgrading options.
For manufacturing, marine shipyard, process or services sector
- Complete and sign theΒ application form for conversion to Higher-Skilled Levy. If your company is in theΒ harbour craft industry, use theΒ application form for conversion to Higher-Skilled Levy (for Harbour Craft industry).
- Prepare clear copies of these supporting documents:
- Workerβs educational or trade test certificates.
- For diploma or higher qualifications, you need to submit additional documents:
If worker has | Need additional documents |
Diploma or higher qualifications fromΒ China |
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Diploma or higher qualifications fromΒ other countries |
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- Submit the completed application form and supporting documents usingΒ iSubmit. UnderΒ Request Type, chooseΒ option 9.
- For non-English documents, you must submit a copy of the original document and an English translation. The translation can be done by a translation service provider.
Welding trade test for process and marine shipyard sectors
To meet the trade test component of the higher-skilled worker levy criteria, your workerβs welding trade test must be endorsed by any of these institutions:
- American Bureau of Shipping
- Bureau Veritas Singapore Pte Ltd
- DNV GL
- Lloydβs Register of Shipping
- Nippon Kaiji Kyokai
- Singapore Test Services
- Setsco Services
- Common Welder Qualification Scheme conducted by the Singapore Welding Society
Levy Rates For S Pass & Work Permit For All Sectors
If you temporarily exceed the 10% S Pass quota for the services sector due to workforce attrition, you will be charged the Tier 2 levy rate for the excess S Passes.
Visit MOM for current updates on levy rates.
Note:
- For all sectors, the S Pass quota will be counted within the Work Permit quota.
- The daily levy rate applies only to S Pass holders who did not work for a full calendar month. The daily levy rate is calculated as follows: (Monthly levy rate x 12) / 365 = rounding up to the nearest cent.
Levy Waiver For Foreign Worker
You can get a waiver for yourΒ foreign workerΒ levy payments only in certainΒ specific situations.Β These include overseas leave and hospitalisation leave.
Learn more about Levy Waiver For Foreign Worker
Please refer to MOM website at www.mom.gov.sg or www.cpf.gov.sg for more detailed information and up-to-date guidelines with regulations.