Foreign Worker Levy: Who Qualifies and What You Get
An explanation of the levy employers must pay to hire non-resident staff in Singapore.
The Foreign Worker Levy is a mandatory fee that employers must pay to the government to obtain the legal permission required to hire non-resident employees.
Who it's for
This scheme applies specifically to employers in Singapore who intend to hire non-resident staff. If you are an employer looking to bring in workers who hold either an S Pass or a Work Permit, you fall under the scope of this levy. It is designed to regulate the employment of foreign workers within the local workforce.
What you get
By paying the levy, an employer receives the necessary legal permission to employ non-resident staff members. This payment is what allows a business to maintain a workforce that includes individuals who are not citizens or permanent residents, ensuring the company stays compliant with local employment regulations regarding non-resident staff.
What it costs you
The cost is a monthly levy payment that must be paid for every qualifying worker employed by the business. The amount paid is tied to the number of workers under the specified work passes. Employers must ensure these monthly payments are handled to maintain their legal right to employ these staff members.
The catch to know
The most important thing to understand is that the levy is not a single, flat rate for everyone. The cost an employer pays can vary significantly based on two main factors: the specific industry sector the business operates in and the specific qualifications of the worker being hired. This means the monthly cost per worker will change depending on these variables.
How to apply
- Identify the specific work pass type for the staff you intend to hire, such as an S Pass or a Work Permit.
- Determine which industry sector your business belongs to, as this affects the rate.
- Calculate the required monthly payments based on the number of qualifying workers and the applicable sector rates.
- Manage your payments through the Ministry of Manpower to ensure continued legal compliance.