Singapore receives a huge population of foreign job applicants each year. This creates a problem for citizens and PR holders in Singapore, as competition for jobs increases. One mechanism that the Government of Singapore has initiated in order to keep the number of foreign employees in check, is the Foreign Worker Levy.<\/p>\n\n\n\n
In this article, we\u2019ll discuss what the FWL levy is and explore how employers can check and pay foreign worker levy. We will also understand how a payroll services<\/a> provider can help you pay your foreign worker levy according to the governmental mandate.<\/p>\n\n\n\n Before we discuss the foreign worker levy, we need to touch upon Singapore\u2019s work permit and the Dependency Ratio Ceiling (DRC).<\/p>\n\n\n\n The Singapore work permit<\/a> is awarded to any foreign citizen who applies to work in Singapore. The DRC refers to the maximum number of foreign job applicants that a business is allowed to recruit and hire.<\/p>\n\n\n\n Companies need to follow the DRC required by sector and give equal employment opportunities to overseas and local workers. This is where the FWL levy comes in.<\/p>\n\n\n\n The foreign worker levy is a specialised mechanism initiated by the Singapore Government to keep the number of work permit holders in check. Companies hiring overseas staff must check and pay foreign worker levy for each foreigner they hire. This is an expense that applies exclusively to foreign employees.<\/p>\n\n\n\n Companies need to pay the FWL Levy when they hire:<\/p>\n\n\n\n FWL does not apply to Employment Pass (EP) holders, as EPs are subject to different regulatory controls rather than levy-based mechanisms.<\/p>\n\n\n\n Employers\nare responsible for paying the Foreign Worker Levy to the Ministry of Manpower\n(MOM).<\/p>\n\n\n\n Employers\ntypically pay FWL via GIRO, which is the default and preferred payment method.\nEmployers without an existing GIRO arrangement must submit a GIRO application\nto MOM. Processing usually takes around 3 to 4 weeks, and employers can track\nthe application status online.<\/p>\n\n\n\n Before\nGIRO approval, employers must ensure levy payment is made via alternative\npayment methods by the stipulated deadline.<\/p>\n\n\n\n The\nmonthly FWL is usually deducted around the 17th of the following month, or the\nnext working day if it falls on a weekend or public holiday. For example, the\nlevy for December will be deducted in mid-January.<\/p>\n\n\n\n If\nthere are insufficient funds, a late payment penalty of 2% per month or SGD 20\n(whichever is higher) applies, capped at 30% of the outstanding levy amount.<\/p>\n\n\n\n Employers\ncan also make levy payments using PayNow QR, though GIRO remains the\nrecommended method for ongoing compliance.<\/p>\n\n\n\n The Foreign Worker Levy payable is determined based on:<\/p>\n\n\n\n Levy rates vary by sector and are subject to periodic review by MOM. Employers should always refer to the latest MOM levy tables for accurate figures.<\/p>\n\n\n\n Employers may apply for a Foreign Worker Levy waiver under specific circumstances, including when the foreign employee:<\/p>\n\n\n\n Businesses can only apply for the levy waiver after the levy has been charged and the application must be within 1 year of the levy bill. Companies can apply online through the CPF website<\/strong><\/a>. After logging in, choose Application for Waiver of Foreign Worker Levy (Business)<\/strong>.<\/p>\n\n\n\n By seeking the right foreign worker levy payment advice from payroll process outsourcing experts, you\u2019ll be able to seamlessly apply for your refunds on time. At Links International, our payroll outsourcing specialists have extensive experience with end-to-end payroll management<\/a>. We can help you pay your FWL levy on time and also help you submit your waivers and claim your refunds. Our team is committed to helping you increase your profitability through dedicated payroll and FWL levy management support. Reach out to us to start discussions.<\/p>\n\n\n\n For more information on levy rate and quota visit the government website<\/a>.<\/em><\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Singapore receives a huge population of foreign job applicants each year. This creates a problem for citizens and PR holders in Singapore, as competition for jobs increases. One mechanism that the Government of Singapore has initiated in order to keep the number of foreign employees in check, is the Foreign Worker Levy. In this article, […]<\/p>\nWhat is Singapore Work Permit?<\/strong><\/h4>\n\n\n\n
What is the Foreign Worker Levy?<\/strong><\/h4>\n\n\n\n
Which Employees Does the FWL Apply to?<\/strong><\/h4>\n\n\n\n
Who is Responsible for Processing & Paying FWL Contributions?<\/strong><\/h4>\n\n\n\n
How is Foreign Worker Levy Calculated?<\/strong><\/h4>\n\n\n\n
Is There a Foreign Worker Levy Waiver?<\/strong><\/h4>\n\n\n\n
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