At the Unity Budget in February 2020, our Finance Minister had indicated that the Manufacturing S Pass Sub-Dependency Ratio Ceiling or sub-DRC, would be cut. This is in line with the tightening already underway in other sectors such as the Services, Construction, Marine Shipyard and Process sectors.
(I) Reduction in S Pass Sub-Dependency Ratio Ceiling (DRC)
The S Pass sub-DRC will be reduced for the Manufacturing sector starting from 1 January 2022.
Table 1: DRC and Sub-DRC changes
(II) Foreign Worker Levy (FWL) rates
|Marine Shipyard||77.80%||No change|
|S Pass sub-DRC|
|Manufacturing||20%||To be reduced to 18% from 1 Jan 2022, and to 15% from 1 Jan 2023 as announced at Budget 2021|
|Construction||18%||To be reduced to 15% on 1 Jan 2023 as previously announced at Budget 2020|
FWL rates will remain unchanged for all sectors. The earlier-announced FWL rate increases for the Marine Shipyard and Process sectors will be deferred for another year.
Table 2: FWL rates
|EP Pass Types||Tier||Dependency Ratio Ceiling (DRC)||Levy Rates ($) (Higher-Skilled(R1)/ Basic-Skilled(R2))|
|S Pass||Basic Tier||≤ 10%||330||330||To be announced in 2022|
|Services Work Permit holders ||Basic Tier||≤ 10%||300/450||300/450|
|Manufactur- ing WPH||Basic Tier||≤ 25%||250/370||250/370|
|Construction WPH||Man- Year Entitle- ment (MYE)||≤ 87.5%||300/700||300/700||300/700|
|Process WPH||MYE||≤ 87.5%||300/500||300/500||To be announced in 2022|
|Marine Shipyard WPH||Basic Tier||≤77.8%||350/500||350/500|
- Strike-outs refer to earlier-announced levy rates which were deferred.
- *The S Pass sub-DRC is 20% in Manufacturing, 18% in Construction, Marine Shipyard and Process, and 10% in Services sector.