Foreign worker levies for S Pass, work permit holders to be waived for SHN period

THE Ministry of Manpower (MOM) will waive foreign worker levies for all S Pass and work permit holders, including migrant domestic workers, for the duration of their stay-home notice (SHN) from January to September this year.

Previously, employers had to pay the monthly levy for each worker starting from the day the temporary work permit or work permit is issued, whichever is earlier, until the permit is cancelled or expires. This includes the SHN duration.

According to MOM, the change is to help employers manage the increased costs associated with the government's updated Covid-19 measures. Since January this year, MOM has limited entry approvals for work pass holders and required all work permit holders to undergo on-arrival testing and serve an SHN to reduce risk of importation of Covid-19 to the community.

While employers have cooperated with these measures in the interest of public health, MOM said some have given feedback that these additional measures have translated to increased costs.

Thomas Oh, director of Beng Khim Engineering and Construction, said the move is a welcome one, especially if employers are looking to bring in workers in larger numbers, as cost savings would be "more significant".

However, he added that it is hard to tell how much the waiver would improve the problem of labour crunch that companies face, as the costs of bringing in foreign workers still "remain relatively high" as compared to before.

A NEWSLETTER FOR YOU

Friday, 8.30 am

SGSME

Get updates on Singapore's SME community, along with profiles, news and tips.

Sign Up

Sign Up

For instance, since March 15, all newly-arrived work permit and S pass holders for the construction, marine shipyard and process sectors from higher-risk countries or regions have had to be onboarded at the Migrant Worker Onboarding Centre, which integrates SHN with medical examination and the settling-in programme. The cost of this ranges from S$750 to S$2,400 per worker.

Julia Bensily, director of Prime Structures Engineering, added that defraying the costs of the SHN might be able to provide greater relief, though she acknowledged that the cost and duration of the SHN for those who have recovered from Covid-19 have already been "greatly lowered".

In an announcement on Thursday, MOM said for employers who have already paid the levy for their workers for the duration of SHN in January and February, the waivers will be effected as an adjustment and used to offset June's levy, which is payable in July.

Additional reporting by Rae Wee