Singapore Firms Fear New Levy will Increase Labour Costs

Companies in Singapore fear that the government's plan to raise levies from July 1 will increase labour costs, reveals the Strait Times.

 

With the new regulation, the government aims to boost productivity and reduce businesses' dependence on foreign labour.

 

According to the Singaporean newspaper, the foreign worker levy will go up every six months for the next three years. The Times says levies will increase by about an average of $100 for each Work Permit holder - except those in construction - over three years. Rates for workers with mid-level skills will at least double from the current rate of $50 per month.

 

Companies will also face changes in levy tiers.  At present, those with a lower proportion of foreigners pay a lower levy, and those with a higher proportion pay considerably more.

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