Foreign Worker Levy (FWL) is a mandatory scheme implemented by the Singaporean government. It is one of the payments employers are required to make for contract foreign workers.

The Foreign Worker Levy is a pricing mechanism to regulate the number of foreign workers in Singapore.

As an employer, you do not have to pay Central Provision Fund (CPF) contributions for your Foreign Workers. However, monthly levy for Work Permit and S Pass holders with payment done via General Interbank Recurring Order (GIRO) is compulsory

The Levy you pay depends on two factors:

The worker's qualifications

Dependency ceiling (only applicable for manufacturing and services sectors).

Payment

Payment must be made via GIRO. Should you not have a GIRO account, you can apply for one using the GIRO Application Form. Your application status and start date of GIRO deduction can only be checked one month after your GIRO application.

After GIRO is approved,

The levy for each month will be deducted from your bank account on the 17th of the following month (or the next day if it falls on a weekend or public holiday).
Note: e.g. the levy for January will be deducted on 17th February 2017
You should maintain enough funds in your account before the deduction date.

Levy bills can be viewed online on the 6th of every month.

If the full levy is not paid on time, you may face the following penalties:

a late payment penalty will be charged
existing Work Permits will be cancelled
you won't be allowed to apply for or issue Work Permits nor renew existing Work Permits
you may face legal action to recover the unpaid levy
if you, your partner(s) or director(s) head other companies, these companies will not be allowed to apply for Work Permits

Higher Skilled Worker Levy

You pay a lower levy for skilled foreign workers who have the necessary academic and skill-based quaifications, years of experience and salary. The levy rates that apply will depend on your sector.

To apply for higher skilled worker levy:

Complete and sign the Application for Conversion to Higher Skilled Worker Levy.
- For the construction sector, your worker can get higher-skilled status by completing one of the four upgrading pathways.
- For the process sector, your worker can get higher-skilled status through one of the three upgrading pathways.
- For manufacturing, marine shipyard, or services sector, you need to apply to convert your worker to higher-skilled levy, and upload a copy of the worker’s educational or trade test certificates.
Prepare these supporting documents:
Clear copies of the educational or test certificates
For certificates issued in China, a copy of the verification report and certificate of graduation. You can get the verification report from sources such as the China Higher Education Student Information and Career Centre
For diplomas or higher qualifications, a copy of the transcript or letter from the institution stating the course duration
Other supporting documents

3. Submit the relevant application and supporting documents using iSubmit. Under request type, choose option 9: Levy Matters

Levy Waiver

You can apply for a levy waiver if your foreign worker:

is on overseas leave for at least 7 consecutive days
Note: Capped at 60 calendar days per calendar year
is on hospitalization leave issued by Singapore hospitals
Note: Capped at 60 calendar days per calendar year
does not return to Singapore after overseas leave
is under police custody or is housed at the embassy
passed away
has become a Singapore permanent resident
is in the harbour-craft industry and is on board a vessel leaving Singapore's port for at least three consecutive days
is a Malaysian and is serving National Service in his home country (usually for three months)

Requirements

picture credits to the Ministry of Manpower here

You can apply for the levy waiver only after the levy has been charged and it must be within one year of the levy bill.
Note: e.g. if the waiver period requested is from January 2015 (start month) to February 2015 (end month), you must submit the application by 31 January 2016.

How to Calculate Your Quota and Levy Bill

You can refer to this booklet that helps you estimate your levy bill and understand how your quota is calculated.

Should you want to apply, you can go online and choose Application for Waiver of Foreign Worker Levy (Business).

**Note: Please note that Payboy does not determine the FWL amount, but you can refer to the calculation here.

The foreign worker levy rate in Singapore is calculated by the employing company's sector, the foreign worker's qualifications, and skills. Monthly levy rates for various sectors are set by the Ministry of Manpower (MOM).

If you have paid your levy amount in excess and you are no longer hiring any foreign worker, please submit an online refund application within one year from the date of payment.

For more information regarding FWL, click here.

If any of the above points are confusing to you or if you encounter any problems, feel free to contact Payboy Support at support@payboy.biz