Singapore 2021 SINGAPORE BUDGET 2021 – FOREIGN WORKFORCE POLICIES

Date
2021-05-10 18:21
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
SectorCurrentChanges
DRC
Services35%No change
Manufacturing60%No change
Construction87.50%No change
Process87.50%No change
Marine Shipyard77.80%No change
S Pass sub-DRC
Services10%No change
Manufacturing20%To be reduced to 18% from 1 Jan 2022, and to 15% from 1 Jan 2023 as announced at Budget 2021
Construction18%To be reduced to 15% on 1 Jan 2023 as previously announced at Budget 2020
Process
(II) Foreign Worker Levy (FWL) rates

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 TypesTierDependency Ratio Ceiling (DRC)Levy Rates ($) (Higher-Skilled(R1)/ Basic-Skilled(R2))
1-Jul-201-Jul-211-Jul-22
S PassBasic Tier≤ 10%330330To be announced in 2022
Tier 2>10%*650650
Services Work Permit holders Basic Tier≤ 10%300/450300/450
Tier 210-25%400/600400/600
Tier 325-35%600/800600/800
Manufactur- ing WPHBasic Tier≤ 25%250/370250/370
Tier 225-50%350/470350/470
Tier 350-60%550/650550/650
Construction WPHMan- Year Entitle- ment (MYE)≤ 87.5%300/700300/700300/700
MYE- Waiver600/950600/950600/950
Process WPHMYE≤ 87.5%300/500300/500To be announced in 2022
300/450300/450
MYE-
Waiver
600/800600/800
600/750600/750
Marine Shipyard WPHBasic Tier≤77.8%350/500350/500
300/400300/400
Notes:
  1. Strike-outs refer to earlier-announced levy rates which were deferred.
  2. *The S Pass sub-DRC is 20% in Manufacturing, 18% in Construction, Marine Shipyard and Process, and 10% in Services sector.


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