Levy rates are approximate for 2024. Actual rates depend on dependency ratio ceiling and may include concessionary rates for qualifying employers.
What is the Foreign Worker Levy?
The Foreign Worker Levy (FWL) is a monthly levy that Singapore employers pay to the government for hiring foreign workers on Work Permits and S Passes. It is designed to:
Regulate the number of foreign workers in Singapore
Encourage employers to hire local workers
Fund public services and infrastructure
Vary by sector and worker skill level
Levy Tiers & Dependency Ratio
FWL rates depend on the worker's skill tier and the employer's dependency ratio:
Higher Skilled: Workers with recognized qualifications — lower levy (~$350)
Basic Skilled / Unskilled: Workers without qualifications — higher levy (~$700-$750)
Dependency Ratio: Max percentage of foreign workers varies by sector
Total FWL = Monthly Levy per Worker x Number of Workers
Frequently Asked Questions
Common questions about Foreign Worker Levy
What is the Foreign Worker Levy? −
The Foreign Worker Levy is a monthly levy paid by employers to the Singapore government for each foreign worker they employ on a Work Permit or S Pass. The levy amount varies by sector (manufacturing, construction, services, etc.) and the worker's skill tier. It is separate from the worker's salary and cannot be deducted from their wages.
What is the dependency ratio ceiling? +
The dependency ratio ceiling (DRC) is the maximum percentage of foreign workers an employer can hire relative to their total workforce. It varies by sector: Manufacturing (60% for Work Permits, 20% for S Pass), Services (35% for Work Permits, 15% for S Pass), Construction and Process sectors have separate quotas. Exceeding the DRC means higher levy tiers for additional workers.
What are the different FWL tiers? +
FWL has two main tiers based on worker qualifications. Higher Skilled workers (with recognized qualifications or certifications) attract a lower levy of approximately $350/month across most sectors. Basic Skilled or Unskilled workers attract a higher levy of $700-$750/month. Construction sector basic skilled workers have a slightly higher levy of $750/month.
Are there any levy concessions available? +
Yes. The government periodically offers levy concessions to help businesses during challenging economic periods. For example, during COVID-19, employers received temporary levy rebates and waivers. There are also concessionary levy rates for certain workers in the construction and process sectors. Check the Ministry of Manpower website for current concessions.
