Understanding and complying with Foreign Worker Levy (FWL) regulations in Singapore is crucial for businesses for several reasons. These regulations are designed to ensure a balanced workforce, promote local employment, and maintain fair labor practices.
Non-compliance can lead to severe consequences, including financial penalties, reputational damage, and operational disruptions. For example, employers may face financial penalties when they fail to make payment for the FWL on time.
In this blog, we share more about the FWL, how it differs according to industry, qualifications and more, exemptions, and potential penalties to avoid incurring them.
What is the Foreign Worker Levy (FWL)?
The FWL is a fee imposed by the Singapore government on employers who hire foreign workers. It is part of Singapore’s strategy to regulate the number of foreign workers in the country and encourage businesses to hire and develop local talent. The levy is managed by the Ministry of Manpower (MOM) and applies to foreign workers holding Work Permits or S Passes.
Workers Subject to the FWL
Only employers of certain types of workers in Singapore must pay the FWL. They include:
| Type of Worker | Who They Are |
|---|---|
| Work Permit (WP) | WP holders include semi-skilled foreign workers from approved source countries or regions working in certain sectors like marine, construction, manufacturing and services. |
| S Pass | An S Pass holder in Singapore is a mid-skilled foreign worker who has the relevant qualifications and experience but does not meet the criteria for higher-tier work passes like the Employment Pass (EP). |
How Much is the Foreign Worker Levy?
Work Permit
The levy rate for work permit holders depends on 2 factors:
- The worker’s qualifications
- The number of work permit or S Pass holders employed
The levy requirements also differ by sector. They include:
Construction Sector Work Permit Levy
| Source Country or Region/Tier | Monthly | Daily |
|---|---|---|
| NTS – Higher-skilled | S$500 | S$16.44 |
| NTS – Basic-skilled | S$900 | S$29.59 |
| Malaysia, NAS, PRC – Higher-skilled | S$300 | S$9.87 |
| Malaysia, NAS, PRC – Basic-skilled | S$700 | S$23.02 |
| Off-site Construction – Higher-skilled | S$250 | S$8.22 |
| Off-site Construction – Basic-skilled | S$370 | S$12.17 |
Manufacturing Sector Work Permit Levy
| Quota | Basic-skilled – Monthly | Basic-skilled – Daily | Higher-skilled – Monthly | Higher-skilled – Daily |
|---|---|---|---|---|
| Basic Tier / Tier 1: Up to 25% of the total workforce | S$370 | S$12.17 | S$250 | S$8.22 |
| Tier 2: Above 25% to 50% of the total workforce | S$470 | S$15.46 | S$350 | S$11.51 |
| Tier 3: Above 50% to 60% of the total workforce | S$650 | S$21.37 | S$550 | S$18.09 |
Marine Shipyard Sector Work Permit Levy
| Category | Monthly Levy Rate | Daily Levy Rate |
|---|---|---|
| Higher-skilled | S$300 | S$9.87 |
| Basic-skilled | S$400 | S$13.16 |
Process Sector Work Permit Levy
| Source country or region/Tier | Monthly | Daily |
|---|---|---|
| NTS – Higher-skilled | S$300 | S$9.87 |
| NTS – Basic-skilled | S$650 | S$21.37 |
| Malaysia, NAS, PRC – Higher-skilled | S$200 | S$6.58 |
| Malaysia, NAS, PRC – Basic-skilled | S$450 | S$14.79 |
Service Sector Work Permit Levy
| Quota | Basic-skilled – monthly | Basic-skilled – daily | Higher-skilled – monthly | Higher-skilled – daily |
|---|---|---|---|---|
| Basic Tier / Tier 1: Up to 10% of the total workforce | S$450 | S$14.80 | S$300 | S$9.87 |
| Tier 2: Above 10% to 25% of the total workforce | S$600 | S$19.73 | S$400 | S$13.16 |
| Tier 3: Above 25% to 35% of the total workforce | S$800 | S$26.31 | S$600 | S$19.73 |
Generally, higher-skilled workers have lower levy rates as compared to lower-skilled workers. This tiered structure strives to encourage hiring more skilled foreign workers and boost workforce productivity.
S Pass
The current levy rate for the services sector is:
| Tier | Quota (%) | Current Levy Rate |
|---|---|---|
| Basic/Tier 1 | Up to 10% of the total workforce | S$550 |
From 1 September 2025, the levy rate will be revised to S$650 per month.
The current levy rate for all other sectors is:
| Tier | Quota (%) | Current Levy Rate |
|---|---|---|
| Basic/Tier 1 | Up to 10% of the total workforce | S$550 |
| Tier 2 | Above 10% to 15% of the total workforce | S$650 |
From 1 September 2025, the levy rate for Tier 1 will be revised to S$650 while there will be no changes for the Tier 2 levy.
Exemptions to the FWL
Employers pay reduced levies for higher-skilled migrant workers. They can apply for this lower levy rate if they meet certain requirements in:
- Academic qualifications
- Skills Evaluation Test (SET) conducted by ITE
- Workforce Skills Qualification (WSQ)
- Market-Based Skills Recognition Framework (MBF)
There is also an additional requirement for employees working in the hotel, retail, and F&B industries. Non-Malaysian WP holders must obtain Level 4 of the Workplace Literacy and Numeracy (WPLN) listening and speaking assessments, administered by the British Council.
Employers of S Pass holders may also apply for a levy waiver in certain specific circumstances, such as overseas leave and hospitalisation leave.
| Circumstance | Documents Required for Levy Application |
|---|---|
| Overseas Leave for Minimum of 7 Consecutive Days (Capped at 60 Calendar Days Per Calendar Year) |
|
| Hospitalisation Leave Issued by a Singapore-Registered Doctor From a Local Medical Institution Capped at 60 Calendar Days Per Calendar Year |
|
| Was in Police or Embassy Custody |
|
| Passed Away |
|
| Aboard a Vessel Leaving Singapore’s Port for at Least 3 Consecutive Days (for Harbour-craft Industry) |
|
| Malaysian Serving National Service in His Home Country or Region (Usually 3 Months) |
|
You can apply for the waiver from the 1st of the following month after receiving the levy bill. You must also apply within 1 year of the levy bill. The request will be processed within 12 working days and may take longer if additional information is required.
Foreign Worker Levy Payment
Companies must pay a levy for their work permit holders monthly. It must be paid by the 17th of every following month, or the next working day if the due date falls on a Saturday, Sunday, or public holiday. For example, the levy bill for a business for January 2025 is 17 February 2025.
Penalties for Failing to Pay FWL
Employers that fail to pay the FWL may face these penalties:
- Late payment penalty
- Revoking of existing work permits or S Passes (Employers may submit a new application for S Pass holders after clearing payment arrears and fines. New passes must be obtained before commencing work)
- Unable to apply for, issue work permits or S Passes, or renew existing S Passes
- May face legal action to recover the unpaid levy
- If you, your partners, or directors lead other companies, these companies may not be allowed to apply for work permits or S Passes
Stay Compliant With InCorp
To ensure compliance, companies should stay updated on the latest FWL policies and changes issued by MOM. Maintaining accurate records of foreign workers, such as work permits, FWL payments, and relevant documentation, is essential. Conducting regular audits and reviews of FWL processes can help identify potential discrepancies or compliance issues.
Additionally, engaging professional consultants experienced in hiring foreign workers such as InCorp can provide valuable support. By adhering to best practices and meeting FWL obligations, employers can enhance their reputation for reliability and professionalism within the industry.
Talk to our team to find out more about how to get started!
FAQs about Foreign Worker Levy in 2025
How much is the levy for a work permit?
- The levy depends on several factors, such as the sector and worker’s qualifications
Is there a levy for employment pass?
- No, there is no levy for an EP holder.
How can InCorp help me with the FWL?
- Our experienced immigration team can help you throughout the entire process of hiring your foreign workers, including the FWL, and beyond.
We’re here to help you navigate the FWL requirements!
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