FOREIGN WORKER LEVY (Waiver)

Dr Teo Ho Pin asked the Minister for Labour whether his Ministry will consider waiving the foreign worker levy for contractors who employ direct skilled foreign workers for a minimum period of 5 years.

Dr Lee Boon Yang: Mr Speaker, Sir, currently, my Ministry allows contractors to pay a lower levy of $200 per month for each foreign worker certified skilled by the Construction Industry Development Board (CIDB). This is a significant saving compared to the levy of $440 for unskilled workers. This policy is aimed at encouraging contractors to employ more skilled workers. The levy savings take effect immediately once the worker is certified skilled. There is no need for a qualifying period. Furthermore, foreign workers that are certified skilled can work here longer for up to 10 years, unlike unskilled workers who can only stay a maximum of four years.

Contractors should also encourage their foreign workers with five years' work experience in Singapore to further upgrade their skills by obtaining NTC certification so as to qualify for the 3-year Work Permits and be exempted completely from foreign worker levy.

My Ministry has therefore provided ample avenues for contractors to employ skilled workers on lower foreign worker levy or even be exempted completely.