Statute Details
- Title: Employment of Foreign Manpower (Levy) Order 2011
- Act/Authorising Legislation: Made under section 11(1) of the Employment of Foreign Manpower Act (Cap. 91A)
- Legislation Type: Subsidiary legislation (SL)
- Commencement: 1 July 2011
- Current Version: Current version as at 27 Mar 2026
- Key Structure: Part I (Preliminary); Part II (Payment of levy and refunds); Part III (Levy rates applicable); Part IV (General)
- Key Provisions (from extract): s 2 (definitions); s 3 (levy on employer of foreign employee); s 4 (levy payable in respect of every month); s 5 (time for payment); s 5A (levy penalty); s 6 (permanent resident); s 7 (refund); ss 8–13 (general levy rate mechanics); sector-specific divisions for different worker categories; s 32 (revocation)
- Schedules: Multiple schedules set out levy payable for specific categories and exclusions (First to Sixteenth Schedules)
- Related Legislation (as provided): Companies Act; Construction Authority Act; Development Act; Environment Public Health Act; Foreign Manpower Act
What Is This Legislation About?
The Employment of Foreign Manpower (Levy) Order 2011 (“Levy Order”) is a Singapore subsidiary law that operationalises the foreign manpower levy regime. In plain terms, it tells employers how much they must pay to employ foreign workers in Singapore, and how that levy is calculated, paid, and (in limited circumstances) refunded.
The levy is a policy tool used to manage the inflow of foreign manpower and to encourage employers to hire and train Singaporeans. The Levy Order does not itself create immigration rules (such as work pass eligibility); rather, it attaches a financial cost to employing foreign workers, with different levy rates and tiers depending on the type of work pass and the worker category.
Practically, the Levy Order is a “calculation and compliance” instrument. It sets out: (i) when levy is payable (monthly, with specific timing rules); (ii) how levy rates are determined (including tiering and daily/monthly calculations); (iii) category-specific rules (for S Pass holders, general work permit holders, domestic workers, construction workers, marine shipyard workers, manufacturing workers, harbour craft workers, process construction/maintenance workers, trainees, performing artistes, reclamation workers, and certain DP‑WP holders); and (iv) how special changes in circumstances (such as changes in household composition for domestic workers, or changes in skill level for certain construction-related workers) affect levy liability.
What Are the Key Provisions?
1. Levy liability and monthly payment mechanics (ss 3–5 and s 4). The core obligation is that a levy is imposed on an employer for employing foreign employees. The Levy Order provides that levy is payable in respect of every month. This means employers must account for levy on a monthly basis even though work pass employment may fluctuate within a month. The Order also sets out the time for payment, which is critical for compliance and for avoiding penalties.
2. Penalties for late or non-compliance (s 5A). The Levy Order includes a provision for a levy penalty. While the extract does not reproduce the text, the existence of s 5A signals that the regime is enforced with financial consequences for failure to pay on time or otherwise comply with levy payment requirements. For practitioners, this is a reminder that levy compliance is not merely administrative; it is enforceable and can carry additional cost.
3. Permanent residents and refunds (ss 6–7). The Levy Order addresses the treatment of permanent residents (s 6). This matters because permanent residents may be treated differently from non-residents for levy purposes, depending on the definition of “foreign employee” under the broader statutory framework. The Order also provides for refunds (s 7), which typically arise where levy has been paid in circumstances that later qualify for exemption or correction. For employers, refund provisions are important for rectifying overpayment due to administrative errors or changes in status.
4. Levy rate calculation and tiering (ss 8–13). Part III is the heart of the Levy Order. It explains how to calculate monthly and daily levy rates (s 8) and how levy is tiered for different pass categories. The Order includes specific “tier” rules for S Pass holders (s 9) and general work permit holders (s 10), as well as category-specific rates for manufacturing workers (s 11). It also provides for the calculation of the number of spaces in each tier (s 12), and a discretion to apply the lowest rate (s 13).
From a legal practice perspective, these provisions are where disputes often arise: employers may disagree with the tier assigned, the number of “spaces” counted, or the application of the lowest-rate discretion. Because the Levy Order is highly structured, practitioners should treat Part III as a step-by-step calculation exercise rather than a single-rate schedule.
5. Category-specific levy provisions (Divisions 2–13 of Part III). The Levy Order then sets out tailored levy rules for different worker categories. For example:
- S Pass holders: s 14 states the levy payable by an employer of an S Pass holder.
- General work permit holders: s 15 provides the relevant levy framework.
- Domestic workers: ss 16–19 address levy payable for domestic workers and how levy changes when household composition changes (ss 17–18), plus rules for domestic workers meeting special criteria (s 19).
- Construction workers: ss 20–21 cover levy payable and how changes in skill level affect levy.
- Marine shipyard workers: ss 22–23 similarly address levy and skill level changes.
- Manufacturing workers: s 24 sets levy payable for manufacturing workers.
- Harbour craft workers: ss 25–26 cover levy and skill level changes.
- Process construction and process maintenance workers: ss 27–30 cover levy and skill level changes.
- Trainees: s 31 provides levy payable by employers of trainees.
- Performing artistes: s 31A provides levy payable by employers of performing artistes.
- Reclamation workers: s 31B provides levy payable by employers of reclamation workers.
- Certain DP‑WP holders: s 31C provides levy payable by employers of certain DP‑WP holders.
6. Exclusions and schedules (First to Sixteenth Schedules). The Levy Order includes multiple schedules that define classes excluded from “total workforce” and classes excluded under certain tiering provisions, as well as schedules setting out levy payable for particular categories. These schedules are essential because levy is often calculated by reference to workforce counts, “spaces” in tiers, and whether certain workers are excluded from the relevant computation.
For example, the First Schedule addresses classes excepted from the definition of “total workforce”. The Second Schedule addresses classes excluded under paragraphs 9(5) and 10(5) (tiering exclusions). The Third Schedule addresses classes excluded from assignment of ordinal position but not levy exempt. These distinctions matter: a worker may be excluded from one part of the calculation but still not be “levy exempt” overall.
How Is This Legislation Structured?
The Levy Order is structured to move from general rules to detailed computations:
Part I (Preliminary) contains the citation and commencement (s 1) and definitions (s 2). Definitions are crucial because levy liability depends on how terms like “foreign employee”, “employer”, and category descriptors are interpreted across the wider statutory framework.
Part II (Payment of levy and refunds) sets out the levy obligation (s 3), the monthly basis (s 4), payment timing (s 5), penalties (s 5A), treatment of permanent residents (s 6), and refund mechanisms (s 7).
Part III (Levy rates applicable) is divided into a general division (ss 8–13) and multiple category divisions (ss 14–31C). This part is where the levy rate logic is applied to different pass types and worker categories, including special rules for changes in circumstances.
Part IV (General) includes revocation (s 32) and a deleted provision (s 33). The schedules then provide the actual levy amounts and the classification/exclusion rules needed to compute levy correctly.
Who Does This Legislation Apply To?
The Levy Order applies primarily to employers who employ foreign workers in Singapore under work pass arrangements covered by the levy regime. The levy is not imposed on workers; it is imposed on the employer as a financial obligation tied to the employer’s workforce composition and the relevant pass category of each foreign employee.
In addition, the Levy Order contains category-specific rules that affect particular employer types and industries. For instance, construction, marine shipyard, harbour craft, process construction/maintenance, and manufacturing workers are treated differently from domestic workers and from trainees or performing artistes. Employers in these sectors should therefore expect category-specific levy computations and should be alert to provisions dealing with changes in skill level or household composition.
Why Is This Legislation Important?
The Levy Order is important because it directly affects the cost of employing foreign manpower and therefore influences hiring strategy, workforce planning, and budgeting. For many employers, levy is a recurring compliance cost that must be forecast and managed alongside work pass renewals and manpower planning.
From an enforcement and risk perspective, the presence of a levy penalty provision (s 5A) means that non-compliance can lead to additional financial exposure. Practitioners advising employers should therefore focus not only on the correct levy rate but also on timely payment and correct reporting/calculation practices.
Finally, the Levy Order’s tiering and exclusion framework makes it a frequent source of administrative disputes. Employers may seek clarification or adjustment where they believe the wrong tier was applied, where certain workers should have been excluded from workforce counts, or where a change in circumstances should reduce or alter levy liability. The refund provision (s 7) provides a pathway for correction in appropriate cases, but it also underscores the need for accurate initial computation.
Related Legislation
- Employment of Foreign Manpower Act (Cap. 91A) (authorising act; provides the statutory framework for the levy regime)
- Companies Act (relevant for corporate definitions such as “Agency for Integrated Care Pte. Ltd.” and general corporate law context)
- Construction Authority Act (relevant to construction-related definitions and recognition of skills/tests)
- Development Act (contextual relevance to certain industry classifications)
- Environment Public Health Act (contextual relevance to conservancy/waste-related levy categories in schedules)
- Foreign Manpower Act (as provided; may be relevant to broader foreign manpower regulatory context)
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.