Employment of Foreign Workers (Levy) Order

Employment of Foreign Workers Act

(CHAPTER 91A, Section 11(1))

O 1

G.N. No. S 476/1990

REVISED EDITION 2002

(30th September 2002)

[1st January 1991]

Citation

1. This Order may be cited as the Employment of Foreign Workers (Levy) Order.

Definitions

2. In this Order, unless the context otherwise requires —

“Board” means the Housing and Development Board established by the Housing and Development Act (Cap. 129);

“commercial property” and “common property” have the same meanings as in the Town Councils Act (Cap. 329A);

“conservancy worker” means any person who is employed by a contractor of a Town Council in, or in connection with, the collection of refuse from, or the cleaning of, the common property of residential and commercial property in the housing estates of the Board within the Town of the Town Council;

“construction worker” means any person who is engaged in any occupation in the construction industry;

“domestic worker” means any person employed in or in connection with the domestic services of any private premises;

“foreign manufacturing worker” means any foreign worker who is engaged in any occupation in the manufacturing industry and includes any foreign manufacturing trainee undergoing training with an approved employer;

“grass-cutter” means any person who is employed in, or in connection with, the cutting of grass, trimming of trees and plants and removing of dead or diseased grass, trees or plants;

“harbour craft” has the same meaning as in the Maritime and Port Authority of Singapore Act (Cap. 170A);

“harbour craft worker” means any person who is engaged in any capacity on board any harbour craft;

“Institute of Technical Education, Singapore” means the Institute of Technical Education, Singapore, established by the Institute of Technical Education Act (Cap. 141A);

“marine worker” means any person who is engaged in any occupation in the marine industry;

“process construction and maintenance worker” means any person who is employed in connection with —

(a)	the construction; or
(b)	the preventive, predictive and breakdown maintenance,

of plant equipment in the petroleum, petrochemicals, specialty chemicals or pharmaceutical industry;

“residential property” has the same meaning as in the Town Councils Act (Cap. 329A);

“skilled construction worker” means a construction worker who has passed a test in a construction-related skill conducted or recognised by the Building and Construction Authority;

“skilled harbour craft worker” means a harbour craft worker who holds a licence issued by the Maritime and Port Authority of Singapore or possesses such other qualifications or work experience as may be recognised by that Authority;

“skilled marine worker” means a marine worker —

(a)

who has passed a test in a marine-related skill conducted or recognised by the Institute of Technical Education, Singapore; or

(b)

who is positioned 3G or above in welding based on internationally recognised standards from one of the following institutions:

(i)	American Bureau of Shipping;
(ii)	Bureau Veritas;
(iii)	Det Norske Veritas Pte Ltd;
(iv)	Germanishercher Lloyd;
(v)	Lloyd’s Register of Shipping;
(vi)	Nippon Kaiji Kyokai;
(vii)	Singapore Test Services Pte Ltd; and
(viii)	Setsco Services Pte Ltd;

“skilled process construction and maintenance worker” means a process construction and maintenance worker —

(a)	who has passed a test in a process construction and maintenance related skill conducted or recognised by the Institute of Technical Education, Singapore; or
(b)	who is positioned 3G or above in welding under the Common Welder Qualification Scheme conducted by the Singapore Welding Society;

“Town” and “Town Council” have the same meanings as in the Town Councils Act (Cap. 329A);

“unskilled construction worker” means a construction worker who is not a skilled construction worker;

“unskilled harbour craft worker” means a harbour craft worker who is not a skilled harbour craft worker;

“unskilled marine worker” means a marine worker who is not a skilled marine worker;

“unskilled process construction and maintenance worker” means a process construction and maintenance worker who is not a skilled process construction and maintenance worker.

Levy on employer of foreign worker

3. There shall be imposed on every employer a levy at the appropriate rate specified in this Order in respect of each of his foreign workers.

Foreign workers other than those specified in this paragraph

4. The levy payable in respect of any foreign worker (other than those specified in the other paragraphs) shall be —

(a)	at the rate of $240 for every calendar month; and
(b)	where the foreign worker is employed for part of a month, at the rate of $8 for every day during which the foreign worker is employed in that month.

Domestic workers

5.—(1) Subject to the provisions of this paragraph, the levy payable in respect of any domestic worker shall be —

(a)

in the case where the conditions set out in sub-paragraph (2)(a), (b), (c) or (d) are satisfied —

(i)	at the rate of $200 for every calendar month; and
(ii)	where the domestic worker is employed for part of a month, at the rate of $7 for every day during which the domestic worker is employed in that month; and

(b)

in any other case —

(i)	at the rate of $295 for every calendar month; and
(ii)	where the domestic worker is employed for part of a month, at the rate of $10 for every day during which the domestic worker is employed in that month.

(1A) The Minister may remit, in whole or in part in the circumstances of any particular case, the levy referred to in sub-paragraph (1)(b).

[S 809/2004 wef 01/12/2004]

(2) The conditions referred to in sub-paragraph (1) are —

(a)

in relation to an employer of a domestic worker —

(i)	the employer is aged 65 years or above;
(ii)	the employer is a citizen of Singapore; and
(iii)	the employer resides at his registered residential address;

(b)

in relation to a spouse of an employer of a domestic worker —

(i)	the spouse is aged 65 years or above;
(ii)	the spouse is a citizen of Singapore;
(iii)	the registered residential address of the spouse is the same as the registered residential address of the employer; and
(iv)	both the spouse and the employer reside at that registered residential address;

(c)

in relation to a child of an employer of the domestic worker or a child of a spouse of that employer —

(i)	the child is below the age of 12 years;
(ii)	the child is a citizen of Singapore; and
(iii)	both the child and the employer reside at the registered residential address of the employer; or

(d)

in relation to a parent, parent-in-law, grandparent or grandparent-in-law of an employer of a domestic worker —

(i)	the parent, parent-in-law, grandparent or grandparent-in-law is aged 65 years or above;
(ii)	the parent, parent-in-law, grandparent or grandparent-in-law is a citizen of Singapore;
(iii)	the registered residential address of the parent, parent-in-law, grandparent or grandparent-in-law is the same as the registered residential address of the employer; and
(iv)	both the parent, parent-in-law, grandparent or grandparent-in-law and the employer reside at that registered residential address.

(3) The levy specified in sub-paragraph (1)(a) shall apply to a maximum of 2 domestic workers employed by the employer.

(4) For the purpose of sub-paragraph (3), spouses who have, and reside at, the same registered residential address shall be treated as one employer.

Example

E and F are spouses, and they have 4 children who satisfy the conditions of sub-paragraph (2) (c) in relation to both E and F. E employs 2 domestic workers, and F employs 2 domestic workers. E and F qualify for the levy specified in sub-paragraph (1) (a) only in respect of 2 of the 4 domestic workers employed by them, because the 2 domestic workers employed by E will be treated as being employed by F and vice versa.

(5) Where the conditions referred to in sub-paragraph (2)(a), (b), (c) or (d) are satisfied by any person in relation to an employer of a domestic worker, that employer shall not qualify for the levy specified in paragraph (1)(a) in respect of a second domestic worker employed by him on account of that same person.

Example

X employs 2 domestic workers. X has a child who satisfies the conditions of sub-paragraph (2) (c). X qualifies for the levy specified in paragraph (1) (a) only in respect of one of the domestic workers employed by him on account of his child.

(6) Where the conditions referred to in sub-paragraph (2)(a), (b), (c) or (d) are satisfied by any person in relation to more than one employer of a domestic worker (whether the same or different conditions are satisfied by the person in relation to each of such employers), only one such employer shall qualify for the levy specified in sub-paragraph (1)(a) on account of that person.

Example

(a) Y is the father of A and B. Y, A and B have the same registered residential address. Y satisfies the conditions of sub-paragraph (2) (d) in relation to both A and B. A and B each employ a domestic worker. Either A or B can qualify for the levy specified in sub-paragraph (1) (a) in respect of their respective domestic workers, on account of Y, but not both A and B.

(b) C is the son of Z. C and Z have the same registered residential address. Z employs a domestic worker, and Z satisfies the conditions of sub-paragraph (2) (a). C also employs a domestic worker, and Z satisfies the conditions of sub-paragraph (2) (d) in relation to C. Either Z or C can qualify for the levy specified in sub-paragraph (1) (a) in respect of their respective domestic workers, on account of Z, but not both C and Z.

(7) In this paragraph, “registered residential address” means —

(a)	in relation to any person who is a citizen of Singapore, the residential address provided by him for the purpose of his registration under the National Registration Act (Cap. 201); and
(b)	in relation to an employer of a domestic worker who is not a citizen of Singapore, the residential address provided by him in applying for a work permit for the domestic worker. [S 510/2004 wef 01/08/2004]

Change in household composition resulting in employer being subject to levy under paragraph 5(1)(b)

5A.—(1) This paragraph shall apply where an employer of a domestic worker who originally qualified for the levy specified in paragraph 5(1)(a) in respect of that domestic worker, ceases to so qualify.

(2) Unless the Controller otherwise allows, where an employer of a domestic worker ceases to qualify for the levy specified in paragraph 5(1)(a) as a result of any of the conditions referred to in paragraph 5(2)(a) to (d) no longer being satisfied (including through the death of a person referred to in paragraph 5(2)), the levy specified in paragraph 5(1)(b) shall be payable by the employer of the domestic worker from the first day of the month following the month in which any of the conditions are no longer satisfied.

(3) Where the employer of a domestic worker ceases to qualify for the levy specified in paragraph 5(1)(a) because his spouse, his child or the child of his spouse, or his parent, parent-in-law, grandparent or grandparent-in-law, ceases to reside at the registered residential address of the employer (as defined in paragraph 5), the employer shall notify the Controller of that fact within 28 days of the person ceasing to so reside.

[S 510/2004 wef 01/08/2004]

Change in household composition resulting in employer qualifying for levy under paragraph 5(1)(a)

5B.—(1) This paragraph shall apply where an employer of a domestic worker who was originally required to pay the levy specified in paragraph 5(1)(b) in respect of that domestic worker, qualifies for the levy specified in paragraph 5(1)(a).

(2) Where an employer of a domestic worker qualifies for the levy specified in paragraph 5(1)(a) as a result of the conditions referred to in paragraph 5(2)(a) or (b) being satisfied, the levy specified in paragraph 5(1)(a) shall be payable by the employer from the first day of the month following the month in which the conditions are satisfied.

(3) Where an employer of a domestic worker qualifies for the levy specified in paragraph 5(1)(a) as a result of the conditions referred to in paragraph 5(2)(c) being satisfied, the levy specified in paragraph 5(1)(a) shall be payable by the employer from the first day of the month following the month in which —

(a)	the conditions are satisfied; and
(b)	where the conditions are satisfied as a result of the employer or the spouse of the employer giving birth to a child in Singapore, the birth of the child is registered under the Registration of Births and Deaths Act (Cap. 267).

(4) Where an employer of a domestic worker qualifies for the levy specified in paragraph 5(1)(a) as a result of the conditions referred to in paragraph 5(2)(d) being satisfied, the employer of the domestic worker shall —

(a)	notify the Controller of the change in household composition; and
(b)	apply to the Controller for the levy specified in paragraph 5(1)(a) to be payable by him, and that levy shall be payable from the first day of the month following the month in which the application to the Controller is approved. [S 510/2004 wef 01/08/2004]

Skilled construction workers

6. The levy payable in respect of any skilled construction worker shall be —

(a)	at the rate of $50 for every calendar month; and
(b)	where the skilled construction worker is employed for part of a month, at the rate of $2 for every day during which the skilled construction worker is employed in that month subject to a maximum of $50 in the aggregate.

Unskilled construction workers

7. The levy payable in respect of any unskilled construction worker shall be —

(a)	at the rate of $470 for every calendar month; and
(b)	where the unskilled construction worker is employed for part of a month, at the rate of $16 for every day during which the unskilled construction worker is employed in that month subject to a maximum of $470 in the aggregate.

Change in skill level of construction workers

8.—(1) Where an unskilled construction worker becomes a skilled construction worker on passing the relevant test, the Building and Construction Authority or the institution which conducted the test shall notify the Controller of the change in the skill level of the construction worker.

(2) The levy at the rates specified in paragraph 6 shall be payable from the first day of the month following the month in which the worker passed the test.

Skilled marine workers

9. The levy payable in respect of any skilled marine worker shall be —

(a)	at the rate of $50 for every calendar month; and
(b)	where the skilled marine worker is employed for part of a month, at the rate of $2 for every day during which the skilled marine worker is employed in that month subject to a maximum of $50 in the aggregate.

Unskilled marine workers

10. The levy payable in respect of any unskilled marine worker shall be —

(a)	at the rate of $295 for every calendar month; and
(b)	where the unskilled marine worker is employed for part of a month, at the rate of $10 for every day during which the unskilled marine worker is employed in that month subject to a maximum of $295 in the aggregate.

Change in skill level of marine workers

11.—(1) Where an unskilled marine worker becomes a skilled marine worker on passing the relevant test, the Institute of Technical Education, Singapore or the institution which conducted the test shall notify the Controller of the change in the skill level of the marine worker.

(2) The levy at the rates specified in paragraph 9 shall be payable from the first day of the month following the month in which the worker passed the test.

Levy payable by employer where percentage of foreign manufacturing workers does not exceed 40% on or after 1st June 1997

12. Subject to paragraph 13, where the percentage of an employer’s foreign manufacturing workers on or after 1st June 1997 does not exceed 40% of his total number of workers, the levy payable in respect of each foreign manufacturing worker shall be —

(a)	at the rate of $240 for every calendar month; and
(b)	where the foreign manufacturing worker is employed for part of a month, at the rate of $8 for every day during which the foreign manufacturing worker is employed in that month.

Where percentage of foreign manufacturing workers is reduced to 40% or below on or after 1st June 1997

13. Where, on or after 1st June 1997, the percentage of an employer’s foreign manufacturing workers exceeds 40% of his total number of workers, but is subsequently reduced to 40% or below of his total number of workers, the employer is not eligible to pay the levy at the rate specified in paragraph 12 in respect of any foreign manufacturing worker —

(a)	until the time the employer renews the work permit of the foreign manufacturing worker; or
(b)	unless before that time the Controller approves an application by the employer (to be made in the form required by the Controller) to pay the levy at the rate specified in paragraph 12 in respect of the foreign manufacturing worker,

and in either case, the levy at the rate specified in paragraph 12 shall not apply until the first day of the month following the month in which the work permit is renewed, or the application to the Controller is approved, as the case may be.

Levy payable by employer where percentage of foreign manufacturing workers exceeds 40% on or after 1st June 1997

14. Subject to paragraphs 15 and 16, where the percentage of an employer’s foreign manufacturing workers on or after 1st June 1997 exceeds 40% of his total number of workers —

(a)

the levy payable in respect of each foreign manufacturing worker not exceeding 40% of the employer’s total number of workers shall be at the rate specified in paragraph 12; and

(b)

the levy payable in respect of each foreign manufacturing worker in excess of 40% of the employer’s total number of workers shall be —

(i)	at the rate of $310 for every calendar month; and
(ii)	where the foreign manufacturing worker is employed for part of a month, at the rate of $11 for every day during which the foreign manufacturing worker is employed in that month.

Where percentage of foreign manufacturing workers exceeds 40% due to reduction in number of local workers on or after 1st June 1997

15. Where the percentage of an employer’s foreign manufacturing workers on or after 1st June 1997 exceeds 40% of his total number of workers because of a subsequent reduction in the number of his local workers, the levy payable in respect of each foreign manufacturing worker in excess of 40% in respect of whom a levy at the rate of $240 for every calendar month had been payable immediately before the reduction shall, until the expiry or cancellation of the work permit of the foreign manufacturing worker —

(a)	be at the rate of $240 for every calendar month; and
(b)	where the foreign manufacturing worker is employed for part of a month, be at the rate of $8 for every day during which the foreign manufacturing worker is employed in that month.

Levy payable by employer for foreign manufacturing trainee who is undergoing training with approved employer on or after 1st June 1997

16. Where , on or after 1st June 1997, an employer’s percentage of foreign manufacturing workers exceeds 40% of his total number of workers, the levy payable in respect of each foreign manufacturing trainee who is issued with a work permit for the purpose of undergoing training with an employer who is approved by the Controller shall be —

(a)	at the rate of $240 for every calendar month; and
(b)	where the foreign manufacturing trainee is employed for part of a month, at the rate of $8 for every day during which the foreign manufacturing trainee is employed in that month.

Effective date of levy for foreign manufacturing workers

17. Except as provided in paragraph 13(b), the rates of levy payable by an employer in respect of his foreign manufacturing worker on or after 1st June 1997 shall apply from the first day of the month following the month in which the employer renews the foreign worker’s work permit.

Skilled harbour craft workers

18. The levy payable in respect of any skilled harbour craft worker shall be —

(a)	at the rate of $50 for every calendar month; and
(b)	where the skilled harbour craft worker is employed for part of a month, at the rate of $2 for every day during which the skilled harbour craft worker is employed in that month subject to a maximum of $50 in the aggregate.

Unskilled harbour craft workers

19. The levy payable in respect of any unskilled harbour craft worker shall be —

(a)	at the rate of $240 for every calendar month; and
(b)	where the unskilled harbour craft worker is employed for part of a month, at the rate of $8 for every day during which the unskilled harbour craft worker is employed in that month subject to a maximum of $240 in the aggregate.

Change in skill level of harbour craft workers

20.—(1) When an unskilled harbour craft worker for whom the higher levy of $240 is payable becomes a skilled harbour craft worker, his employer may apply, in the form required by the Controller, to pay the lower levy of $50 in respect of the worker.

(2) The higher levy shall continue to be payable pending the approval of the Controller for the conversion from the higher levy to the lower levy up to the last day of the month in which the application for conversion is approved by the Controller.

(3) The lower levy of $50 shall be payable from the first day of the month following the month in which the application for conversion is approved by the Controller.

Controller to determine percentage of foreign manufacturing workers

21. For the purposes of paragraphs 12 to 17, where any question arises as to whether an employer’s percentage of foreign manufacturing workers exceeds the amount referred to in those sub-paragraphs, the question shall be determined by the Controller.

Conservancy workers

22. The levy payable in respect of any conservancy worker shall be —

(a)	at the rate of $350 for every calendar month; and
(b)	where the conservancy worker is employed for part of a month, at the rate of $12 for every day during which the conservancy worker is employed in that month subject to a maximum of $350 in the aggregate.

Skilled process construction and maintenanceworkers

23. Subject to paragraph 25, the levy payable in respect of any skilled process construction and maintenanceworker shall be —

(a)	at the rate of $50 for each calendar month; and
(b)	where the skilled process construction and maintenance worker is employed for part of a month, at the rate of $2 for every day during which the skilled process construction and maintenance worker is employed in that month subject to a maximum of $50 in the aggregate.

Unskilled process construction and maintenanceworkers

24. The levy payable in respect of any unskilled process construction and maintenance worker shall be —

(a)	at the rate of $295 for each calendar month; and
(b)	where the unskilled process construction and maintenance worker is employed for part of a month, at the rate of $10 for every day during which the unskilled process construction and maintenance worker is employed in that month subject to a maximum of $295 in the aggregate.

Change in skill level of process construction and maintenance workers

25.—(1) Where an unskilled process construction and maintenance worker becomes a skilled process construction and maintenance worker on passing the relevant test, the Institute of Technical Education, Singapore or the Singapore Welding Society shall notify the Controller of the change in the skill level of the process construction and maintenance worker.

(2) The levy at the rates specified in paragraph 23 shall be payable from the first day of the month following the month in which the worker passed the test.

25A. [Deleted by S 689/2003 wef 01/01/2004]

Foreign worker with suitable academic qualifications or work experience

26. Notwithstanding paragraphs 4 to 25, the levy payable in respect of any foreign worker who has such academic qualifications, skills, capabilities, work experience, remuneration or any combination thereof, or who satisfies such other criteria as the Minister may determine, shall be —

(a)	at the rate of $50 for every calendar month; and
(b)	where the foreign worker is employed for part of a month, at the rate of $2 for every day during which the foreign worker is employed in that month subject to a maximum of $50 in the aggregate. [S 382/2004 wef 01/07/2004]

Effective date of levy for foreign worker with special skills or experience

27. The levy at the rates specified in paragraph 26 shall apply from —

(a)	the date on which the foreign worker’s work permit is issued or renewed, on or after 1st May 1996;
(b)	where an application is made by the employer (in the form required by the Controller) to pay the levy at the rates specified in paragraph 26 before the date on which the work permit is renewed, and the Controller approves the application, the first day of the month following the month in which the Controller approves the application; or
(c)	in the case of a foreign worker in the manufacturing or service industry, the first day of the month following the month in which the Institute of Technical Education, Singapore or the institution which conducted the relevant test, notifies the Controller of the change in the skill level of the foreign worker,

and until such time the rates of levy applicable to the foreign worker under paragraphs 4 to 25 shall apply.

Grass-cutters

28. The levy payable in respect of any grass-cutter shall be —

(a)	at the rate of $350 for every calendar month; and
(b)	where the grass-cutter is employed for part of a month, at the rate of $12 for every day during which the grass-cutter is employed in that month subject to a maximum of $350 in the aggregate.

Schedule

29. Unless otherwise provided for in this Order, the levy shall be collected and paid with effect from the appropriate dates set out in the Schedule.

Permanent resident

30.—(1) Where a foreign worker who is on a work permit and in respect of whom levy is payable becomes a permanent resident of Singapore, the levy payable shall cease on the day he becomes a permanent resident.

(2) Where a foreign worker who is a permanent resident of Singapore ceases to be a permanent resident of Singapore, the levy payable shall be charged from the day he is issued a work permit by the Controller.

(3) In this paragraph, “permanent resident” includes the holder of a Singapore blue identity card and a person who holds an entry permit issued by the Controller of Immigration.

Time for payment of levy

31.—(1) The levy payable by any employer shall be paid not later than 14 days after the end of the month in respect of which the levy is payable.

(2) The Controller may allow the time for payment by any employer to be extended by not more than 7 days.

Penalty

32. Any sum due by way of penalty under section 11(4) of the Act shall be paid within 14 days of a demand by any employment inspector.

Refund

33.—(1) Any employer who wishes to make a claim for a refund of any amount paid by him under this Order shall do so in writing to the Controller within one year after the end of the month in respect of which the levy has been paid.

(2) Where the Controller is satisfied that a refund is to be made to the employer for any amount which is not due from the employer or for any amount which ought to be waived in the circumstances of the case, the Controller may —

(a)	set-off the amount against any amount of levy due and payable by the employer under this Order in respect of any worker; or
(b)	refund the amount to the employer.

(3) Notwithstanding sub-paragraphs (1) and (2), where the Controller is satisfied that —

(a)	an employer has paid an amount by way of levy which was not due from him under this Order; and
(b)	less than one year has passed since the end of the month in respect of which the levy has been paid,

the Controller may, on his own accord —

(i)	use the amount to set-off any other levy that is due and payable by the employer under this Order in respect of any worker and any penalty imposed on such levy; or
(ii)	refund the amount to the employer.

Exemption

34. The Minister, or such other person as he may in writing authorise, may, in his discretion, exempt any person or class of persons from all or any of the provisions of this Order.

[G.N. Nos. S 476/90; S 186/91; S 246/91; S 306/91; S 577/91; S 103/92; S 251/92; S 387/92; S 311/93; S 143/95; S 22/96; S 193/96; S 410/96; S 326/97; S 105/98; S 360/98; S 647/98; S 1/2001; S 599/2001]

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