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The foreign worker levy is a monthly charge MOM puts on employers who hire Work Permit and S Pass holders. It is a price signal, not a tax on wages, and it rises as your workforce depends more on foreign staff. Checked on .
How much is the foreign worker levy?
It depends on the pass. For S Pass holders the answer is simple. MOM harmonised the levy at S$650 a month across all sectors and tiers from .
For Work Permit holders the levy varies by sector, skill and tier. MOM publishes a separate table for construction, manufacturing, marine shipyard, process and services. The services sector table below is the one we read in full.
| Tier (share of workforce) | Basic-skilled, per month | Higher-skilled, per month |
|---|---|---|
| Tier 1, up to 10% | S$450 | S$300 |
| Tier 2, 10% to 25% | S$600 | S$400 |
| Tier 3, 25% to 35% | S$800 | S$600 |
The ceiling for the services sector is 35% of your total workforce. We did not read the other sector tables for this page, so open MOM's sector pages for construction, manufacturing, marine shipyard and process before you budget. MOM has also announced that Tier 1 and Tier 2 will merge in a later year, so check the page for the date.
Employment Pass holders carry no levy. MOM states that no foreign worker levy or quota is required for the pass.
What is the daily levy rate?
The daily rate applies only to a worker who did not work a full calendar month, for example in the month of arrival or cancellation. MOM's formula is the monthly rate times 12, divided by 365, rounded up to the nearest cent.
| Services sector Work Permit | Daily rate |
|---|---|
| Basic-skilled, Tier 1 / 2 / 3 | S$14.80 / S$19.73 / S$26.31 |
| Higher-skilled, Tier 1 / 2 / 3 | S$9.87 / S$13.16 / S$19.73 |
| S Pass, all tiers | S$21.37 |
Who pays and when does liability start?
The employer pays, not the worker. For a Work Permit, MOM says liability starts on the day the Temporary Work Permit or Work Permit is issued. For an S Pass it runs from the day of issue until cancellation or expiry. If a worker leaves, cancel the pass promptly. The levy keeps running until you do.
A Work Permit employer has other costs too. MOM lists the fixed monthly salary, medical insurance, a primary care plan, a security bond for non-Malaysian workers and repatriation costs. See the Work Permit page for the pass itself, and the S Pass page for salary floors and quota.
What are the quota limits?
Quota sits next to the levy. MOM sets a dependency ratio ceiling for each sector: 83.3% for construction and process, 75% for marine shipyard, 60% for manufacturing and 35% for services. S Pass holders are capped at 10% of the workforce in services and 15% in the other sectors.
The S Pass quota is worked out from your company's CPF account, so an employer with no CPF account has no basis for it.
How and when do you pay the levy?
MOM sets one date for everyone. Pay by the 17th of the following month. If that is a Saturday, Sunday or public holiday, pay on the next working day.
- Check your bill online. It appears on the 3rd working day of each month.
- Pay by GIRO, which deducts on the 17th, or by PayNow QR if your GIRO application is pending.
- Check the GIRO status two working days after the deduction date.
What happens if you pay late?
MOM adds late payment penalties. If you miss payment for two consecutive months, the Work Permits and S Passes can be revoked. MOM can also stop you from applying for new Work Permits, take legal action to recover the amount, and restrict work pass applications from related companies. Set up GIRO and keep the balance covered.
Is the foreign worker levy the same as SDL?
No. The Skills Development Levy is 0.25% of wages for every employee. The foreign worker levy is a fixed monthly amount for Work Permit and S Pass holders. An employer with an S Pass worker pays both. See the SDL page for how that one works.
What does a budget look like?
MOM's S Pass rate is a flat number, so budgeting is simple. Two S Pass holders cost S$1,300 a month in levy, which is S$15,600 over 12 months. That is on top of their wages, the Skills Development Levy and any other employer costs. For Work Permit holders the monthly cost depends on your tier. Adding a worker can push your share of the workforce into a higher tier, so check the effect on every worker, not only the new one.
What is the higher-skilled rate?
MOM applies a lower levy to Work Permit holders with relevant experience, qualifications or certifications. In the services table above the higher-skilled column is lower in each tier. MOM has a separate page that explains how a worker qualifies. Read it before you assume a worker is basic-skilled.
What other tools does MOM offer?
MOM's levy hub lists a levy waiver application, a foreign employee quota calculator and a levy penalty calculator. Use the quota calculator before you apply for a pass, so you know you have room under the ceiling. Use the penalty calculator if a payment slipped.
Independent guide
SingaporeCompanySetupGuide.com is an independent guide. We are not MOM and we do not collect levy or apply for passes. If you would like a provider to handle your foreign hire, use the quote form on this site. We pass your request to suitable firms and they quote their own fees.
Sources
- MOM, Foreign worker quota and levy requirements, https://www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-worker/foreign-worker-levy/what-is-the-foreign-worker-levy (who pays, start of liability)
- MOM, Services sector Work Permit requirements, https://www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-worker/sector-specific-rules/services-sector-requirements (tier table, daily rates)
- MOM, S Pass quota and levy requirements, https://www.mom.gov.sg/passes-and-permits/s-pass/quota-and-levy/levy-and-quota-requirements (S$650, quota ceilings)
- MOM, Paying the levy, https://www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-worker/foreign-worker-levy/paying-the-levy (due date, GIRO, penalties)
- MOM, Work Permit conditions, https://www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-worker/sector-specific-rules/work-permit-conditions (employer costs)
- MOM, Employment Pass key facts, https://www.mom.gov.sg/passes-and-permits/employment-pass/key-facts (no levy for Employment Pass)
