Statute Details
- Title: Employment of Foreign Manpower (Levy) Order 2011
- Act Code: EFMA1990-S371-2011
- Legislative Type: Subsidiary legislation (SL)
- Authorising Act: Employment of Foreign Manpower Act (Cap. 91A)
- Enacting Authority: Minister for Manpower
- Citation: SL 371/2011
- Commencement: 1 July 2011
- Status: Current version as at 27 Mar 2026
- Key Parts: Part I (Preliminary); Part II (Payment of Levy and Refunds); Part III (Levy Rates Applicable); Part IV (General)
- Key Provisions (from metadata): s 2 (definitions); s 3 (levy on employer); s 4 (monthly levy); s 5 (time for payment); s 5A (levy penalty); s 6 (permanent resident); s 7 (refund); ss 8–13 (general levy rate mechanics); and sector-specific divisions for S Pass holders, work permit holders, domestic workers, construction, marine shipyard, manufacturing, harbour craft, process construction/maintenance, trainees, performing artistes, reclamation workers, and certain DP‑WP holders.
- Schedules: First to Sixteenth Schedules set out workforce exclusions and levy tables by worker category.
- Related Legislation (as provided): Companies Act; Construction Authority Act; Development Act; Environmental Public Health Act; Foreign Manpower Act
What Is This Legislation About?
The Employment of Foreign Manpower (Levy) Order 2011 (“Levy Order”) is Singapore’s detailed regulatory instrument that operationalises the foreign manpower levy regime under the Employment of Foreign Manpower Act (Cap. 91A). In plain terms, it tells employers how much they must pay to employ foreign workers in Singapore, depending on the type of work pass held by the foreign worker and the employer’s “tier” or workforce position for that month.
The levy system is designed to influence employers’ hiring decisions and to encourage the hiring and retention of Singaporeans and permanent residents, while still allowing employers to access foreign labour where needed. The Levy Order is therefore not merely a payment schedule; it is a structured mechanism that defines who is counted, how levy rates are calculated, when levy becomes payable, and when refunds or penalties may apply.
Practically, the Levy Order is the “maths and categories” layer of the foreign manpower levy framework. It sets out the levy payable for different classes of foreign workers (for example, S Pass holders, general work permit holders, domestic workers, and workers in specific industries such as construction and marine shipyards). It also includes special rules for changes in household composition (for domestic workers), changes in skill level (for certain industry workers), and additional categories such as trainees, performing artistes, and certain DP‑WP holders.
What Are the Key Provisions?
1. Levy obligation and monthly payment mechanics (Part II). The core obligation is that an employer must pay a levy for employing foreign employees. The Levy Order provides that levy is payable in respect of every month (ss 3 and 4). This is significant because it means levy is not typically “per day worked” but is instead tied to monthly periods and the employer’s workforce position during that month.
Time for payment and penalties. The Order specifies the time by which levy must be paid (s 5). It also provides for a levy penalty (s 5A). For practitioners, the key compliance point is that late payment or non-payment can trigger additional financial consequences beyond the base levy amount. Employers should therefore align internal payroll/HR reporting cycles with the levy payment deadlines and ensure that pass-holder counts and categories are accurate before the payment date.
Permanent residents and refunds. The Levy Order contains provisions addressing permanent residents (s 6). While the levy regime is primarily aimed at foreign manpower, the inclusion of a specific section on permanent residents indicates that the Order clarifies how permanent residents are treated for levy purposes (for example, whether and how they are excluded from levy calculations). The Order also provides for refunds (s 7), which is important where levy has been overpaid or where circumstances change such that levy should not have been charged for a particular period.
2. Levy rate calculation and tiering (Part III, Division 1). Part III sets out the levy rates applicable. Section 8 provides the general method for calculating monthly and daily rates of levy. This matters because employers may need to understand how levy is computed when a worker is employed part-way through a month, or when the levy regime requires daily pro-rating.
The Order then introduces a tier system. Sections 9 to 12 deal with how the “tier for the month” is determined for different categories of workers (S Pass holders, general work permit holders, and manufacturing workers) and how the number of “spaces” in each tier is calculated. In practice, the tier system is where employers’ workforce size and composition translate into the levy rate they pay. The higher the tier, the higher the levy rate typically becomes, reflecting the policy objective of discouraging excessive reliance on foreign manpower.
Discretion to apply the lowest rate. Section 13 gives discretion to apply the lowest rate. This is a practitioner-relevant provision because it may allow the relevant authority to mitigate levy exposure in certain circumstances—though the scope and conditions of that discretion will depend on the statutory text and any implementing guidance. Employers should therefore consider whether their facts could support an application for the lowest applicable rate, especially where tier calculations are complex or where workforce changes occur around the relevant measurement dates.
3. Category-specific levy rules (Part III, Divisions 2–13). The Levy Order then breaks down levy obligations by worker category, each with its own rules and schedules.
S Pass holders (Division 2) and general work permit holders (Division 3). Sections 14 and 15 set out levy payable by employers for S Pass holders and general work permit holders. These provisions link the levy obligation to the relevant pass category and to the applicable levy table in the schedules (Fourth and Fifth Schedules respectively).
Domestic workers (Division 4). Domestic workers are treated separately (ss 16–19). The Order includes rules for changes in household composition that can affect whether an employer is subject to levy or qualifies for a particular levy treatment (ss 17 and 18). It also provides for domestic workers meeting special criteria (s 19). For legal practitioners, this division is particularly fact-sensitive: household composition changes (for example, changes in the number of dependants or household circumstances) can alter levy liability. Employers should maintain documentary evidence of household circumstances and ensure that any reporting or notification obligations are met promptly to avoid overcharging or penalties.
Construction, marine shipyard, manufacturing, harbour craft, and process workers (Divisions 5–9). The Levy Order provides tailored levy rules for specific industries. For construction workers (ss 20–21), marine shipyard workers (ss 22–23), manufacturing workers (s 24), harbour craft workers (ss 25–26), process construction workers (s 27–28), and process maintenance workers (ss 29–30), the Order addresses both the levy payable and what happens when there is a change in skill level. This indicates that levy is not only based on job category but may also vary with skill classification. Practitioners should therefore pay close attention to how skill levels are defined and updated, and how those updates affect levy calculations for subsequent months.
Trainees and performing artistes (Divisions 10–11). Sections 31 and 31A address levy payable by employers of trainees and performing artistes. These categories often involve different policy considerations (for example, training pathways or sector-specific labour arrangements). The schedules and any special criteria will be crucial to determine whether a reduced levy rate or different calculation applies.
Reclamation workers and certain DP‑WP holders (Divisions 12–13). Sections 31B and 31C address levy payable for reclamation workers and certain DP‑WP holders. These provisions reflect that the levy regime extends beyond the most common pass categories and includes specific groups that may be subject to distinct levy tables (Thirteenth and Sixteenth Schedules respectively).
4. Exclusions, exceptions, and schedules. The Levy Order contains multiple schedules that refine the levy calculation by excluding certain classes from the definition of “total workforce” (First Schedule), excluding certain classes under specified paragraphs (Second and Third Schedules), and setting out levy tables for each worker category (Fourth through Sixteenth Schedules). For practitioners, the schedules are often where disputes arise: whether a worker is counted, whether a class is excluded, and whether a worker’s ordinal position affects tiering can materially change the levy payable.
How Is This Legislation Structured?
The Levy Order is structured as follows:
- Part I (Preliminary): Contains the citation and commencement (s 1) and definitions (s 2).
- Part II (Payment of Levy and Refunds): Establishes the levy obligation (s 3), the monthly basis for levy (s 4), payment timing (s 5), levy penalties (s 5A), treatment of permanent residents (s 6), and refunds (s 7).
- Part III (Levy Rates Applicable): Provides the rate calculation methodology and tiering rules (Division 1), then sets category-specific levy provisions (Divisions 2–13) for S Pass holders, work permit holders, domestic workers, industry-specific workers, trainees, performing artistes, reclamation workers, and certain DP‑WP holders.
- Part IV (General): Includes revocation (s 32) and a deleted provision (s 33).
- Schedules: Provide workforce exclusions and detailed levy tables by category.
Who Does This Legislation Apply To?
The Levy Order applies to employers who employ foreign manpower in Singapore under specified work pass categories. The levy is triggered by the employment of foreign employees who fall within the defined categories (for example, S Pass holders, general work permit holders, domestic workers, and other industry-specific categories). The obligation is therefore employer-centric: it is the employer who must calculate and pay the levy.
In addition, the Order’s tiering and exclusion rules mean that the levy payable can depend on the employer’s broader workforce composition and on whether certain classes are excluded from the relevant workforce counts. Employers should therefore treat the Levy Order as a compliance framework that requires ongoing HR and workforce analytics, not just a one-off payment calculation.
Why Is This Legislation Important?
The Employment of Foreign Manpower (Levy) Order 2011 is important because it directly affects the cost of employing foreign workers and therefore influences hiring strategy, budgeting, and workforce planning. For many employers, levy is a recurring operational cost that must be accurately forecast and controlled.
From an enforcement and risk perspective, the inclusion of a levy penalty provision (s 5A) underscores that compliance failures can have financial consequences. Moreover, because levy calculations depend on tiering, workforce counts, and category-specific rules (including skill level changes and household composition changes), errors can arise from administrative delays, incorrect classification, or failure to account for exclusions and special criteria.
For legal practitioners advising employers, the Levy Order is also a key reference point in disputes about levy liability, overpayment, and refund entitlements. The refund provision (s 7) and the detailed schedules on exclusions and levy tables provide the legal basis for challenging incorrect levy assessments and for seeking rectification where the employer’s circumstances fall within an exclusion or special treatment.
Related Legislation
- Employment of Foreign Manpower Act (Cap. 91A) (authorising Act)
- Companies Act
- Construction Authority Act
- Development Act
- Environmental Public Health Act
- Foreign Manpower Act
Source Documents
This article provides an overview of the Employment of Foreign Manpower (Levy) Order 2011 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.