FOREIGN DOMESTIC WORKER LEVY

Dr Jennifer Lee asked the Minister for Manpower (a) what was the Government levy for foreign domestic workers at the time of its introduction and how has it increased over the years to its present rate; and (b) what was the number of foreign domestic workers at the time of introduction of the levy and what were the numbers since then, specifically in the years before and after each change in the levy.

Dr Lee Boon Yang: The foreign domestic worker (FDW) levy was first introduced in April 1982. At that time, the levy was set at 30% of the worker's monthly wages, in line with the levy rates for other sectors*. To moderate FDW demand, the FDW levy rate has been adjusted upwards over the years to the present $345 per month. The changes in FDW levy rates from 1982 to 1999 are given in Annex I below. Owing to the uncertain economic climate, a moratorium was placed on increases to the levy rate in January 1999.

There were around 14,000 FDWs when the FDW levy was first introduced in 1982. Since then, the number of FDWs has grown steadily to more than 140,000 today, which is ten times the figure in 1982.

• The monthly levy rates for these sectors then were set at 30% of the worker's monthly wages or $150, whichever is greater. Annex 1 FOREIGN DOMESTIC WORKER LEVIES Effective Date Foreign Domestic Worker Levy ($/month) 1 Apr 82 30% of monthly wages 1 Nov 84 $120 1 Jan 89 $160 1 Jul 89 $200 1 Feb 90 $230 1 Aug 90 $250 1 Apr 92 $300 1 Apr 95 $330 1 Apr 98 $345 1 Jan 99 $345 (moratorium imposed )