Statute Details
- Title: Employment of Foreign Manpower (Levy) Order 2011
- Act/Instrument Type: Subsidiary legislation (SL)
- Authorising Act: Employment of Foreign Manpower Act (Cap. 91A)
- Enacting power: Section 11(1) of the Employment of Foreign Manpower Act
- Citation: S 371/2011
- Commencement: 1 July 2011
- Status: Current version as at 27 Mar 2026
- Key subject: Payment of foreign manpower levy by employers (including tiered levy rates and special categories)
- Principal structure: Part I (Preliminary); Part II (Payment and refunds); Part III (Levy rates); Part IV (General)
- Notable provisions (from the 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); Part III divisions for S Pass, work permits, domestic workers, construction, marine shipyard, manufacturing, harbour craft, process construction/maintenance, trainees, performing artistes, reclamation workers, and certain DP‑WP holders
- Schedules: Multiple schedules set out levy rates and classes excluded/exempted (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 the Singapore legal instrument that operationalises the foreign manpower levy regime for employers. In plain terms, it sets out who must pay the levy, when it must be paid, how much it is (including tiered rates), and when refunds or special treatment may apply.
The levy is a policy and regulatory mechanism designed to influence employers’ decisions about hiring foreign manpower. It does so by imposing a cost on employing foreign workers, with the cost varying by work pass type and by the employer’s “total workforce” position within defined tiers. The Levy Order therefore sits at the intersection of immigration/work pass administration and employment compliance.
Although the Levy Order is a subsidiary instrument, it is highly practical: for many employers, the levy calculation and payment process is a recurring compliance obligation. The Order’s detailed divisions and schedules reflect that different sectors and worker categories (for example, construction workers, domestic workers, marine shipyard workers, and certain trainees) are treated differently.
What Are the Key Provisions?
1. Levy obligation and monthly basis (ss 3–5 and related provisions). The core charging provision is s 3, which provides for a levy on an employer of a foreign employee. The levy is then expressed as being payable in respect of every month (s 4). This monthly structure matters for compliance planning: employers must ensure that their workforce position at the relevant time results in correct levy exposure for each month.
2. Timing and penalties (s 5 and s 5A). The Order includes provisions on the time for payment (s 5) and a levy penalty (s 5A). For practitioners, these provisions are important because levy compliance is not only about calculating the correct amount; it is also about meeting payment deadlines and managing exposure to penalties for late or incorrect payment.
3. Permanent residents and refunds (ss 6–7). The Levy Order addresses how permanent residents are treated within the levy framework (s 6). This is significant because workforce composition calculations often turn on whether particular individuals are counted as “foreign employees” for levy purposes. The Order also provides for refunds (s 7), which can arise where levy has been paid but later found not to be payable (for example, due to correction of workforce data or eligibility determinations). A lawyer advising an employer will typically focus on whether a refund pathway exists and what factual/legal basis supports it.
4. Tiered levy rates and calculation methodology (Part III, especially ss 8–13). Part III is the heart of the Levy Order. Division 1 sets out general rules for calculating monthly and daily rates of levy (s 8). It then introduces the concept of a tier for different categories of work pass holders (ss 9–12), based on the employer’s workforce position. Section 12 addresses how the number of “spaces” in each tier is calculated, which is central to determining where an employer falls within the tiering system.
Section 13 provides the Minister (or the relevant authority) with discretion to apply the lowest rate. This kind of discretionary provision is often relevant in disputes about tier assignment or calculation anomalies. Practically, it can be used to mitigate levy exposure where the employer can demonstrate that applying the lowest applicable rate is justified under the Order’s framework.
5. Category-specific levy provisions (Divisions 2–13 and corresponding schedules). After the general tiering rules, the Order sets out levy obligations for specific categories:
- S Pass holders (Division 2, s 14) — levy payable by the employer of an S Pass holder.
- General work permit holders (Division 3, s 15) — levy payable for general work permit holders, with rates and exclusions reflected in the schedules.
- Domestic workers (Division 4, ss 16–19) — includes provisions on domestic workers generally (s 16), changes in household composition affecting levy liability (ss 17–18), and domestic workers meeting special criteria (s 19). This is particularly important for employers whose household circumstances change midstream.
- Construction workers (Division 5, ss 20–21) — levy payable for construction workers and adjustments where a worker’s skill level changes.
- Marine shipyard workers (Division 6, ss 22–23) — levy payable and changes in skill level.
- Manufacturing workers (Division 7, s 24) — levy payable for manufacturing workers.
- Harbour craft workers (Division 8, ss 25–26) — levy payable and changes in skill level.
- Process construction and process maintenance workers (Division 9, ss 27–30) — levy payable and skill level changes.
- Trainees (Division 10, s 31) — levy payable by the employer of a trainee.
- Performing artistes (Division 11, s 31A) — levy payable by the employer of performing artistes.
- Reclamation workers (Division 12, s 31B) — levy payable by the employer of reclamation workers.
- Certain DP‑WP holders (Division 13, s 31C) — levy payable by the employer of certain DP‑WP holders.
Each of these divisions is supported by schedules (Fourth Schedule through Sixteenth Schedule) that set out the actual levy payable for the relevant categories. For legal practice, the schedules are often where the “numbers” live; the operative provisions tell you how to apply those numbers.
6. Revocation and general provisions (Part IV). Part IV includes a revocation provision (s 32) and a deleted section (s 33). Revocation is relevant when determining whether the Levy Order replaced earlier levy instruments and how transitional issues may have been handled historically.
How Is This Legislation Structured?
The Levy Order is structured to move from definitions and general charging rules to payment mechanics, and then to category-specific levy rates.
Part I (Preliminary) contains the citation/commencement (s 1) and definitions (s 2). Definitions are crucial because levy calculations depend on how terms such as “foreign employee”, “tier”, and category labels are interpreted.
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), and special rules for permanent residents and refunds (ss 6–7).
Part III (Levy Rates Applicable) is divided into a general division (ss 8–13) and multiple category divisions (ss 14–31C). This reflects the policy that levy rates are not uniform across all foreign manpower categories.
Part IV (General) includes revocation and other general matters.
The schedules provide detailed levy rates and lists of classes that are excluded or exempted in specified contexts (First Schedule through Sixteenth Schedule). These schedules are essential for accurate computation and for identifying when certain workers do not count toward levy liability or tier calculations.
Who Does This Legislation Apply To?
The Levy Order applies to employers who employ foreign employees within the meaning of the Employment of Foreign Manpower framework. In practice, this includes employers holding relevant work pass obligations and who are required to pay levy for foreign manpower categories covered by the Order.
It also applies to employers of specific categories such as S Pass holders, general work permit holders, domestic workers, construction and sector-specific workers, trainees, performing artistes, reclamation workers, and certain DP‑WP holders. The precise levy exposure depends on (i) the pass category, (ii) the employer’s tier position, and (iii) whether any exclusions or exemptions apply under the schedules.
Why Is This Legislation Important?
The Levy Order is important because it converts a broad policy goal—managing foreign manpower—into a measurable, enforceable compliance obligation. For employers, the levy is a recurring cost and a compliance risk area. For lawyers, it is a frequent subject in advisory work involving workforce planning, internal compliance audits, and disputes about levy calculations.
From an enforcement perspective, the inclusion of a levy penalty (s 5A) underscores that non-compliance can lead to additional financial consequences. Moreover, because levy is payable monthly, small calculation errors can compound over time, making accurate tiering and correct classification of workers critical.
Practically, the Order’s tiering methodology and category-specific rules require employers to maintain reliable data on workforce composition, skill levels (where relevant), and household composition changes for domestic workers. Where changes occur midstream, the relevant provisions (for example, ss 17–18 for domestic workers, and skill level change provisions for sector workers) can affect levy liability and may support adjustments or refunds.
Finally, the Levy Order’s schedules and exclusion/exemption lists mean that legal advice often turns on whether a particular worker class is counted for levy purposes, or whether a worker is excluded from “total workforce” or from tier assignment. This is where careful statutory interpretation and evidence gathering become decisive.
Related Legislation
- Employment of Foreign Manpower Act (Cap. 91A) (authorising act)
- Companies Act
- Construction Authority Act
- Development Act
- Environment 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.