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Changes of Foreign Worker Levy July 2011 - July 2013
Tuesday, 01 March 2011

According to MOM, the foreign worker levy rates and levy tiers for S Pass and Work Permit holders will be increase gradually between July 2010 and July 2012. Companies should take this time to make cost adjustments and invest in measures to boost productivity.

Key changes include the following:

  1. Increase in the S Pass and Work Permit levy rates. This is to better moderate employers’ demand for foreign manpower and to encourage investment in productivity.
  2. Introduction of levy tiers for S Pass Workers and changes to levy tiers for manufacturing and services sector. The changes will be slowly phased in by July 2012 for companies to adjust their dependence on foreign manpower.
  3. Greater differentiation in levy rates between skilled and unskilled foreign workers. This aims to encourage companies that need foreign workers to employ better skilled and thereby more productive ones;

There is no change in Dependency Ratios. This maintains companies’ access to, while at the same time encourages them to reduce reliance on, foreign manpower. There will also be no changes to Foreign Domestic Worker levy rates.

To understand the gradually adjusted rates at 6-monthly intervals (see Annex A for details).

[Source: MOM]

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