Posted on 25/03/2021 by Paula Formantes
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:
- https://www.mom.gov.sg/passes-and-permits/s-pass/quota-and-levy/levy-and-quota-requirements
- https://www.mom.gov.sg/passes-and-permits/s-pass/quota-and-levy/paying-the-s-pass-levy
- https://www.mom.gov.sg/faq/work-pass-general/how-do-i-calculate-my-companys-total-workforce
- https://www.mom.gov.sg/eservices/services/declare-your-business-activity
- https://www.mom.gov.sg/-/media/mom/documents/services-forms/passes/guide_on_comp_of_company_quota_balance.pdf
- http://mof.gov.sg/docs/librariesprovider3/budget2021/download/pdf/annexc3.pdf