Foreign Worker Levy in Singapore: Changes to the Levy From July 2015

Posted on June 16, 2015 by Pragya Gupta

Singapore Foreign Worker Levy The Ministry of Manpower in Singapore has implemented a quota on the total number of foreign employees that you can hire. If your company exceeds the quota, you will have to reorganize your workforce in order to meet the requirements. You can find out what is your company’s quota on foreign employees here.

In addition to the quota, the foreign worker’s levy applies to any company that employs foreigners with Work Permits. The quota depends on the industry. From July 2016 the rates for the levy will change. Here is the complete schedule of foreign worker levy changes. The levy needs to be paid via GIRO on the 17th of the next month. In case your company is still in the process of applying for GIRO, you may pay by other methods by the 14th of the next month. Here are the details for paying the levy.

This is the schedule for the services sector:

S Pass
Tier	Sector Dependency Ratio (DR)	Current Levy Rates ($)	New Levy Rates ($) From July 1 2016
Basic Tier	<10%	315	330
Tier 2 (Services)	10-15%	550	650
Tier 2 (Other Sectors)	10-20%	550	650

Work Permit
Tier	Sector Dependency Ratio (DR)	Current Levy Rates ($) (R1/R2)	New Levy Rates ($) (R1/R2) From July 1 2016
Basic Tier	<10%	300/420	300/420
Tier 2 (Services)	10-25%	400/550	400/550
Tier 2 (Other Sectors)	25-40%	600/700	600/700

The Skilled Workers’ Levy rates are lower than regular foreign workers’ levy. It applies for workers who have years of experience and meet the academic qualifications specified by the Ministry of Manpower. The forms and requirements for applying for the skilled workers’ levy are posted here.

Do note that there are certain work permit requirements that the MoM has posted. In addition to the regular requirements, foreign workers in the retail and F&B sector need to obtain level 4 of the Workplace Literacy listening and speaking assessments conducted by the Workforce Development Agency (WDA). You can register for the assessments through the CES online booking portal.

Payroll in APAC: Singapore

Posted on June 10, 2015 by Pragya Gupta

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Employer contributions in Singapore are collected by the Central Provident Fund (CPF). The deductions and levies contribute towards savings for Singaporeans and Permanent Residents (PRs) for retirement, insurance and building their homes. There are also certain levies that go towards different ethnic funds. We will go through all these deductions and levies.

CPF

CPF contributions are done by the employee and employer. The contributions ar singapore cpf e restricted to Singaporeans and PRs only. There are 4 major accounts that CPF contributions go into: Ordinary Account (for retirement, housing finance, investment, education), Special Account (for old age and special contingencies), Medisave Account (for hospital bills) and Retirement Account (this account is opened once the employee turns 55). Check out these links to find out contributions rates and deadlines.

Foreign Workers Levy

The levy is imposed on employers who employ foreign workers with Work Permits or S Passes. Levies do not need to be paid for employees with Employment Passes. The levy is calculated based on the ratio of Singaporeans to foreign employees that your business employs. Here is a link on how the foreign levy is calculated. The levy is paid on the first of every month. More details on the FWL here.

Skills Development Levy

The SDL goes to the Skills Development Fund, which provides grants for training programmes and workforce upgrading programmes. The levy must be paid for Singpaorean, PR and foreign workers. The rates are linked here.

Ethnic Fund

There are 4 Self Help Group (SGH) Funds that collect levies based on the ethnicity of your employees. The four funds are:

Chinese Development Assistance Council (CDAC) Fund, administered byCDAC
Eurasian Community Fund (ECF), administered by the Eurasian Association(EA)
Mosque Building and Mendaki Fund (MBMF), administered by Majlis Ugama Islam Singapura (MUIS)
Singapore Indian Development Association (SINDA) Fund, administered by SINDA

The levy is paid out of employees’ salaries. Employees may choose to opt out of the levy by signing the relevant forms. The levy must be paid every month. Here are the rates.

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For more information on CPF contributions, make sure to read this link. If you want to know more about employer contribution in the Philippine, check out Payroll in APAC: the Philippines.. Hope this helps!

Disclaimer: As always, consult your lawyer or accountant for advice! We are here to help, but your specific situation should be reviewed by a professional with complete knowledge of your situation.

The Employer’s Guide to Singapore Work Visas

Posted on May 19, 2015 by

https://www.youtube.com/watch?v=SjkXCsMXY-0&feature=youtu.be&rel=0

This video provides an introduction to hiring foreign workers in Singapore- types of visas available to the employee according to skill level, application criteria and levies due to the employer. More information is available on the Ministry of Manpower website

After you have incorporated your business in Singapore, you will need to hire employees, both local or foreign to work for your company. If you are employing non-resident employees in Singapore, as an employer you have to make sure that they hold a valid work pass (also known as work visa).

Professional Work Visa

Pass type	Who is it for
Employment Pass	For foreign professionals, managers and executives. Candidates need to earn at least S$3,300 a month and have acceptable qualifications.
EntrePass	For eligible foreign entrepreneurs wanting to start and operate a new business in Singapore.
Personalised Employment Pass	For high-earning existing Employment Pass holders or overseas foreign professionals. The PEP offers greater flexibility than an Employment Pass.

 Skilled or Semi- Skilled Workers

Pass type	Who is it for
S Pass	For mid-level skilled staff. Candidates need to earn at least S$2,200 a month and meet the assessment criteria.
Work Permit for foreign worker	For semi-skilled foreign workers in the construction, manufacturing, marine, process or services sector.

The Foreign Worker Levy

singapore work passes It is important to note that Singapore companies are required to pay Foreign Worker Levy (FWL) for the Work Pass and S Pass holders. This levy is imposed by the Singapore Government to regulate foreign workers numbers in the country.

The amount of levy due to the employer is determined by the sector the company belongs to and the educational level and skills of the employees. Employing workers with relevant qualifications and skill-based test certificates will count towards your skilled workers, which will entitle you to a concession in the worker’s levy.

Look at this example on the FWL scheme for manufacturing and service sectors.

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Pass type

Who is it for