Employers to pay S$70 to S$400 more in foreign worker levy
By Saifulbahri Ismail | Posted: 26 February 2013 1734 hrs
File photo: Foreign workers at a construction site in Singapore.
SINGAPORE: Employers will have to pay between S$70 and S$400 more in foreign worker levy within the next two years.
The Ministry of Manpower (MOM) gave details on Tuesday of the increases, announced by Finance Minister Tharman Shanmugaratnam in his Budget Statement on Monday.
MOM said the levy rates will vary and will be based on the skills of the workers and how reliant the company is on foreign workers.
The increases for S Pass and work permit holders will occur twice - on 1 July 2014 and 1 July 2015.
For work permit holders, the increase is steepest for the construction sector at S$400 per worker.
In the process sector, the levy will go up by S$300; and that of manufacturing will be S$200 higher.
For the marine sector, the levy will cost S$170 more, while that of the services sector will increase by S$250.
As for S Pass holders in construction, manufacturing, process, marine and service sectors, the levy will go up by S$260.
To help companies in the services sector progress towards higher productivity, the job flexibility scheme will be expanded.
The scheme allows work permit holders to multi-task to raise productivity and help companies cope with labour constraints.
In October 2012, the scheme was launched in the hotel sector.
From July 2013, it will be extended to the entire services sector.
The government is also giving companies more time to adjust.
Existing S Pass holders whose passes expire before July 2013 will get a one-time renewal.
Between July and December 2013, workers will receive a one-time renewal of up to one year.
Those who change employers after July 2013 will have their applications considered under the new S Pass criteria.
- CNA/xq
