It has been announced during the Singapore Budget 2016 for the amendments to the Work Permit Holders Levy Schedule.
It should be noted that all of the sectors have an increase in the Levy Rates except for the Marine, Process and Manufacturing Sectors. This reflects the government’s stance towards encouraging companies to hire more Singaporeans and to reduce their dependence on foreign labour. The decision to strengthen the “Singaporean Core” is still very much emphasized.
It is more interesting to understand the reasons why foreign worker levy increment in Marine and Process Sectors are deferred. The reason that was provided is because of “reduction of Work Permit holders and this sector’s challenging business conditions”
All employers should take note that the effective date of change of Levy Rates are on 1st July, 2016 and should account for this into their hiring practices. The Construction Sector should note that there is a further increase in the levy rates on 1st July, 2017.
To encourage companies to retain experienced workers to enhance productivity in the Construction and Process Industries from the Non-traditional sources, the minimum experience requirement for man-year entitlements (MYE)-waiver workers will be increased from two to three years, effectively from 1st July 2017.
Source:
http://www.straitstimes.com/business/economy/singapore-budget-2016-foreign-worker-levy-increase-deferred-in-marine-and-process