SINGAPORE BUDGET 2026

Budget 2026: Levy for basic-skilled Work Permit holders to increase by S$100 for marine sector, S$150 for process sector

Manufacturing and services sectors’ tiered levy structure will be simplified

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Elysia Tan

Published Thu, Feb 12, 2026 · 04:16 PM

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There will be no adjustments for the levy rate of higher-skilled Work Permit holders. PHOTO: BT FILE

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[SINGAPORE] The government will raise Work Permit levies for basic-skilled (R2) workers in the marine shipyard sector by S$100, and in the process sector by S$150, Finance Minister Lawrence Wong said in his Thursday (Feb 12) Budget speech.

There will be no adjustments for the levy rate of higher-skilled (R1) Work Permit holders.

The latest changes, which take effect from 2028, will bring R2 levies for the marine shipyard sector to S$600, from S$500. R1 Work Permit levies will remain at S$350.

As for firms in the process sector, those hiring R2 workers from Malaysia, North Asia and China will see the monthly levy increase to S$600, from S$450. R1 worker levies will stay at S$200.

For process sector firms hiring Work Permit holders from non-traditional sources, the R2 levy will grow to S$800, from S$650. R1 levies remain at S$300.

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Wong, who is also prime minister, also announced that the government will simplify the current tiered levy structure for the manufacturing and services sectors.

For these sectors, firms which use more of their Work Permit holder quota or Dependency Ratio Ceiling (DRC) will pay a higher levy rate.

There are currently three DRC utilisation tiers. With the upcoming change, Tier 1 and Tier 2 will be merged.

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For the services sector, the monthly levy rate for the merged tier will be set at S$400 for R1 Work Permit holders, and S$600 for R2 holders. For the manufacturing sector, this monthly rate for the merged tier will be set at S$300 for R1 permit holders, and S$470 for R2 holders.

For more of BT’s Budget 2026 coverage, go to bt.sg/budget26

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