Changes to Foreign Worker Levy

Strong signal to businesses to invest in productivity, changes to take effect from January 2012

Last February, as the economy was just emerging from the recession, MOM announced that foreign worker levy (FWL) rates will be gradually raised starting from July 2010 to July 2012 as part of the Government’s strategy to achieve productivity-led growth. As our economy is now firmly back on track, the FWL rates will be further raised to support our national goals of encouraging productivity improvement, reducing reliance on low-skilled foreign workers, and fostering inclusive growth.

This is a strategic shift and not merely a response to current economic conditions. It will send a strong signal to businesses to invest in productivity improvements, upgrade their operations, and reduce their reliance on low-cost, low-skilled foreign workers.

The changes to the FWL rates and tiers for S Pass and Work Permit holders will be phased-in from January 2012 to July 2013, at 6-monthly intervals. The phase-in period will give businesses sufficient time to make the necessary adjustments.

Please refer to the media release for more details.