SINGAPORE: FEES FOR HIRING FOREIGN WORKERS TO INCREASE

The Singapore Ministry of Manpower (MOM) has announced two
changes to regulations regarding the hiring of foreign workers.  The changes
will affect the percentage of foreign workers allowed to be employed by
companies in Singapore
and will also increase the skilled foreign worker levy. These amendments will
be effective starting July 1, 2005.

 

Citing economic recovery as its motive, MOM announced that
the skilled foreign worker levy will be progressively raised over the next year. 
The first increase will take effect on July 1, 2005.  On this date the levy
will increase from its current level of $50, to $80 per skilled foreign
worker.  On July 1, 2006 the levy will increase once more to $100.  This levy
applies to all skilled foreign workers across all sectors of the economy.

 

MOM also announced that it will be raising the Dependency
Ceiling (DC) – the percentage of work permit holders that are allowed to
be employed by a company as part of their total workforce.  The DC will be increased
to 60% for the manufacturing sector and to 40% for the service sector starting
July 1, 2005.  The current DC is set at 50% for manufacturing and 30% for
services.  Although the DC will increase, it will also require companies to pay
$500 per skilled foreign worker that is hired above the current DC limit.