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Employers to pay S$70 to S$400 more in foreign worker levy (ChannelNewsAsia)
SINGAPORE: Employers will have to pay between S$70 and S$400 more in foreign worker levy within the next two years.
The Ministry of Manpower (MOM) gave details on Tuesday of the increases, announced by Finance Minister Tharman Shanmugaratnam in his Budget Statement on Monday.
MOM said the levy rates will vary and will be based on the skills of the workers and how reliant the company is on foreign workers.
Homegrown bakery Pine Garden’s Cake is one of the companies affected by the new tightening measures on foreign workers.
Within the next two years, the company has to fork out as much as S$250 more a month in levies for every foreign worker it hires.
But the bakery says a much more bitter pill to swallow is the reduction in Dependency Ratio Ceiling (DRC).
Under the changes, it can hire fewer foreigners with the same number of local workers.
Wei Chan, business development director at Pine Garden’s Cake said: “The dependency ratio is the worst. When you talk about levies and so forth it’s essentially financial, we can work out the business, and we can try and do more and pay the levies, but without this quota, we are talking about the company being crippled and not even having its arms and legs to even function as a company and move the business forward.”
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