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Industry Insights

S Pass quota and levy requirements

Posted on 25/03/2021 by Paula Formantes

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The number of S Pass holders you can hire is limited by a quota. You must also pay a monthly levy for these workers.

What is the foreign worker levy?

The foreign worker levy, commonly known as “levy”, is a pricing mechanism to regulate the number of foreign workers in Singapore.

As an employer, you must pay the levy for all your S Pass holders. The levy liability starts from the day the S Pass is issued and ends when the pass is cancelled or expires.

You have to pay the levy using GIRO.

Note: Levy rates are regularly reviewed and adjusted as required. See the levy rates announced in Budget 2021.

Quota requirement

If you have never applied for a Work Permit or S Pass, you need to declare your business activity for calculating your quota.

Under the existing quota, the number of S Pass holders your company can hire is capped at:

  • 10% of the company’s total workforce in the services sector.
  • 20% in the manufacturing sector.
  • 18% in all other sectors.

For employers that exceed the existing quota, they will:

  • Be allowed to keep their excess workers until their S Passes expire.
  • Not be able to apply for new or renew S Passes in excess of the quota.

Upcoming changes in the S Pass quota

Sector

From 1 Jan 2022

From 1 Jan 2023

Manufacturing

(announced during Budget 2021)

Change from 20% to 18% of the total workforce

Change from 18% to 15% of the total workforce

Services

No change

No change

Construction

Marine shipyard

Process

No change

Change from 18% to 15% of the total workforce

 

Levy rate

For the services sector, the levy rate is as follows:

Tier

Quota %

Monthly levy rate

Daily levy rate

Basic / Tier 1

Up to 10% of the total workforce

$330

$10.85

 

For the manufacturing sector, the levy rate is as follows:

Tier

Quota %

Monthly levy rate

Daily levy rate

Basic / Tier 1

Up to 10% of the total workforce

$330

$10.85

Tier 2

Above 10% to 20% of the total workforce

$650

$21.37

 

For all sectors (excluding services and manufacturing), the levy rate is as follows:

Tier

Quota %

Monthly levy rate

Daily levy rate

Basic / Tier 1

Up to 10% of the total workforce

$330

$10.85

Tier 2

Above 10% to 20% of the total workforce

$650

$21.37

 

Note: 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.

For more information on job vacancies, please contact +65 6334 4328 or email at enquiry@primehr.com.sg

References:

  1. https://www.mom.gov.sg/passes-and-permits/s-pass/quota-and-levy/levy-and-quota-requirements
  2. https://www.mom.gov.sg/passes-and-permits/s-pass/quota-and-levy/paying-the-s-pass-levy
  3. https://www.mom.gov.sg/faq/work-pass-general/how-do-i-calculate-my-companys-total-workforce
  4. https://www.mom.gov.sg/eservices/services/declare-your-business-activity
  5. https://www.mom.gov.sg/-/media/mom/documents/services-forms/passes/guide_on_comp_of_company_quota_balance.pdf
  6. http://mof.gov.sg/docs/librariesprovider3/budget2021/download/pdf/annexc3.pdf