SINGAPORE FOREIGN WORKER > LEVY SCHEME
Singapore is a developed country with a relatively stable economy that benefits from a strong presence of foreign workers.
To regulate the number of foreign workers, the Ministry of Manpower has implemented the Foreign Worker Levy (FWL) pricing mechanism, requiring employers to pay a monthly levy to the government.
Additionally, the Dependency Ratio Ceiling (DRC) system regulates the number of foreign workers any company can employ and sets the maximum permitted ratio of foreign workers to the total workforce based on the sector.
The scheme applies to Work Permit holders and S Pass holders.
Levy for Work Permit holders
The levy rate for foreign workers varies based on the sector and the qualifications of the worker. Skilled workers are entitled to a levy concession.
The Ministry of Manpower (MOM) has stipulated monthly levy rates for different sectors, and for workers who are not employed for a full calendar month, a daily levy rate applies. From 1 January 2011, the daily levy rate is computed based on sector specific formula and requirements.
For Construction Sectors
The Foreign Worker Levy is determined by the worker’s qualifications and skills. In the construction sector, FWL is charged based on whether the worker is higher-skilled or basic skilled, whereas, for most other sectors, the workers are classified as skilled or unskilled.
For Manufacturing & Service Sectors
The worker’s qualifications and the DRC quota for the sector together determine the levy amount. It must be noted that the rates are tiered so that employers who hire close to the maximum quota will incur a higher levy bill.
Click here* for a free table guide on the levies payable across different sectors in different tiers.
Employers are required to contribute to the Skills Development Fund. The Skill Development Levy (SDL) applies to all employees rendering services wholly or partly in Singapore.
The SDL is set at a minimum of S$2 (for an employee earning less than S$800 a month) and capped at S$11.25 (for an employee earning more than S$4,500 a month).
Employers employing foreign workers are required to pay SDL in addition to the Foreign Workers Levy (FWL).
The CPF Board collects the Skills Development Levy on behalf of the Singapore Workforce Development Agency. The levy collected is channeled into the Skills Development Fund (SDF), which provides grants to companies that send their workers for training.
The S-Pass is a Singapore work visa type designed for mid-level skilled foreign workers employed by companies operating in Singapore.
The application is assessed based on a point system with consideration for each of the following factors: salary, educational qualifications, skills, job type, and work experience.
Quantity: The number of S-Pass holders a Singapore company can employ is capped at a sub-quota of 25% of the company’s total workforce.
Validity: It has a validity of 1 or 2 years and is renewable as long as the pass holder remains employed in the company, subject to the prevailing conditions imposed by approving authorities at the time of renewal.
Benefits: S-Pass holders whose fixed monthly salary is at least S$2,800 may apply for Dependant’s Pass and/or Long-Term Visit Pass for their family members.
Permanent Residence Eligibility: S-pass holders are eligible to apply for Singapore Permanent Residency. There is no waiting period but it is advisable to wait for at least three years before applying for Permanent Residence.
- A fixed monthly salary of S$2,000 or above.
- Possession of a degree, diploma, or technical/ specialist qualifications.
- Relevant work experience and skills.
To be considered for an Employment Pass, you must have a fixed monthly salary of at least S$4500 and possess one or more of the following:
- Generally, a recognized Diploma/Degree qualification
- Professional qualifications (professional or educational)
- Specialist skills
Relevant Work-related experience
You can also use the self-assessment tool on the MOM website to evaluate your chances.
Our specialists are well equipped with the experience and expertise hence we are confident that we can provide a personalized consultation based on your situation, a personal assessment of your chances in applying as well as how we can assist you to put forth a stronger case.
You can have peace of mind by entrusting your application to our team of specialists, who will conduct a comprehensive evaluation of all aspects to ensure that it complies with the current review standards.
We have accumulated extensive experience and knowledge of Singapore’s immigration regulations and maintain a strong track record of successful outcomes. Our team stays up-to-date with the latest regulatory updates, ensuring that we provide reliable and effective guidance.
Is the EntrePass for me?
EntrePass Applications are for foreign entrepreneurs who lack the necessary educational qualifications or do not qualify under the Employment Pass scheme but have a proven track record of successful entrepreneurial experience.
The application process for the EntrePass is more complex than for the Employment Pass. Also, it requires a minimum paid-up capital amount of S$50,000.
Company Set-Up Requirements
The key requirement for the application of an EntrePass is a ten-page comprehensive business plan that outlines the goals and objectives of the proposed business plan and includes a strategy to meet the requirements stipulated by the Ministry of Manpower (MOM).
The business venture must demonstrate, within one year, that it will meet the requirements of employing a minimum number of local employees and achieving a specified total business expenditure.
- Minimum: One shareholder plus one resident director plus one company secretary.
- Local registered office address.
- Must be registered as a private limited company with a minimum paid-up capital amount of S$50,000.
- Applicant must own at least 30% of the company shares.
Note: The application for the Singapore EntrePass must be submitted within six months after the incorporation of a company. Upon approval, the applicant can set up a company as a single Director and Shareholder within 1 month from the date of Entrepass approval.
For more information, please refer to the MOM website.
EntrePass Visa Eligibility Requirements
- 10 page business plan detailing business goals and objectives
- Relevant experience and a track record of managing businesses or a unique business proposition
8-Steps Procedure for EntrePass Application
- Submit the EntrePass application.
- Complete payment of upfront fee S$3500 for EntrePass application where S$1000 will be refunded if the application is rejected after the appeal.
- Upon receipt of payment, a detailed business plan will be prepared within 2 to 4 weeks based on the information provided.
- Forms and documents prepared signed by the applicant.
- PACE Professional will subsequently liaise with MOM on behalf of the applicant regarding all handling of documents.
- The processing time is around 4 to 6 weeks from the day of submission to MOM.
- S$3,000 banker’s guarantee is required upon approval of the EntrePass.
- Upon approval of the EntrePass, PACE Professional will undertake the setup of the proposed company.
FILL IN THIS FORM FOR US TO ASSIST YOU
Copies of documents required:
- Passport Size Photo of Applicant (Taken within last 3 months)
- Resume/CV
- Educational certificates (Certified true copy)
- Applicant’s past employment testimonials in English (Optional)
- Singapore EntrePass Application (Form 8).
- MOUs or contracts with potential clients for the new business, if any
- Brochures, press releases, or any other business collateral from previous or existing business ventures, if any
- A well-drafted, 10-page business plan (Entrepass Business Plan Form)
We will also need the following if you have an existing business in your country:
- Business Information
- Business License (Certified true copy)
- Product Catalogue / Photos
- Tax papers
- Invoices from suppliers
Company / Personal bank proof (at least S$30,000) - Rental Agreements
- Business Contracts
- Annual Turnover for the past 3 years
