Big let-down for building, services as levies go up as planned

THE decision to proceed with the levy increases for work permit holders in the construction and services sectors has taken both industries by surprise, as they had held out for a deferral in the current economic climate.

For the construction sector, the levy rate for basic tier or R2 (Basic skilled) workers will be raised from S$550 currently to S$650 on July 1, 2016 and S$700 on July 1, 2017. In addition, the minimum experience requirement for man-year-entitlement (MYE) waiver will be raised from two years to three years from July 1, 2017, to encourage firms to retain their more experienced workers to support productivity.

To qualify for MYE waiver, a construction or process worker must have at least two years of working experience in their sector in Singapore.