Advisory for Landscape Register Companies
Non-Residents must hold a valid pass before they can work in Singapore. Employers who hire foreigners without valid work passes can be prosecuted under the Employment of Foreign Manpower Act.
The Foreign Worker Levy is a pricing mechanism to control the number of Foreign Workers (including Foreign Domestic Workers) in Singapore. While they are not required to pay Central Provident Fund (CPF) contributions for Foreign Workers, employers are liable to pay monthly levies to hire employees who hold Work Permits or S Passes. Employers are reminded to pay the salaries and levy payments on a timely basis.
The Landscape Industry comprising landscape design, construction and maintenance is considered under the Service sector.
Service sector companies can recruit workers from the following Countries/Territories:
- Malaysia
- People's Republic of China (PRC)
- North Asian Sources (NAS): Hong Kong, Macau, South Korea and Taiwan.
- Non Traditional Sources : India, Sri Lanka, Thailand, Bangladesh,The Republic of the Union of Myanmar and Philippines.
Foreign Workers from NAS/NTS/PRC cannot be in Singapore when their Work Permit applications are being submitted.
Employers can only bring these workers in after:
- Obtaining the In-Principle Approval from the Work Permit Deparment; and
- Furnishing a security bond of $5,000 per worker.
Security deposits can be made in the form of a Banker's Guarantee or Insurance Guarantee payable to the Controller of Work Passes.
| Tier |
Dependency Ratio/ FW % |
Worker Category |
Monthly Levy (S$) |
Daily Levy (S$) |
| Basic Tier/ Tier 1 |
Up to 20% of the total workforce |
Skilled |
180 |
5.92 |
| |
|
Unskilled |
280 |
9.21 |
| Tier 2 |
Above 20% to 35% of the total workforce |
Skilled |
300 |
9.87 |
| |
|
Unskilled |
400 |
13.16 |
| Tier 3 |
Above 35% to 50% of the total workforce |
Skilled (1) |
450 |
14.80 |
| |
|
Unskilled (1) |
Daily levy rate only applies to Work Permit holders who did not work for a full calendar month. From 1 January 2011, the daily levy rate is computed based on the following: (Monthly levy rate x 12) / 365 = rounding up to the nearest cent.
(1) Skilled workers belonging to the categories of above 50% to 65% of the total workforce in the Manufacturing Sector and above 35% to 50% of the total workforce in the Service Sector are not eligible for the skilled levy rates.
“Total workforce” refers to the sum of the local workforce, S Pass holders and Work Permit holders that are subjected to the sectoral Dependency Ratio. 'Local workforce' refers to those full-time employees (Singapore citizens or permanent residents) who have worked for a full month, and are receiving prompt monthly salary/CPF contributions which are similar to the industry norm. Two part-time employees are considered as one local full-time employee.
Before you apply for foreign workers please go to MOM’s website and read through:-http://www.mom.gov.sg/foreign-manpower/passes-visas/work-permit-fw/before-you-apply/Pages/overview.aspx
Note: If your organisation has registered with Accounting and Corporate Regulatory Authority for less than six months and does not have a Central Provident Fund (CPF) account, please approach CPF Board to open an account. Your organisation should contribute CPF for your local employees for at least one month at the point of business activity declaration.
Please note the new levy rates, for hiring foreign workers, from Jan 2012.
|
1 Jul 2010 |
1 Jan 2011 |
1 Jul 2011 |
1 Jan 2012 |
1 Jul 2012 |
| Tier |
FW% |
Levy ($) (R1
/R2) |
FW% |
Levy ($) (R1
/R2) |
FW% |
Levy ($) (R1
/R2) |
FW% |
Levy ($) (R1
/R2) |
FW% |
Levy ($) (R1
/R2) |
| Basic Tier |
<50% |
160/ 300 |
≤25% |
170/ 270 |
≤20% |
180/ 280 |
≤20% |
190/ 290 |
≤15% |
200/ 300 |
| Tier 2 |
- |
- |
25%-
40% |
300 |
20%-
35% |
300/ 400 |
20%-35% |
300/ 400 |
15%-
35% |
300/ 400 |
| Tier 3 |
- |
- |
40%-
50% |
450 |
35%-
50% |
450 |
35%-50% |
450 |
35%-
50% |
450 |
|
R1 Pass - Skilled (Landscape WSQ composite assessment)
R2 Pass – Unskilled
|
Work Pass Administrative Fee Changes
Changes aimed at recovering costs for work pass operations and services. New fees from 1 December 2011.
- The Ministry of Manpower (MOM) has reviewed the administrative fees for all work passes, and will be making changes as it moves towards full cost recovery for the Ministry's work pass operations and services. The administrative fees for most work passes has been increased from 1 December 2011.
- This is in line with the Government’s financial principle that the full cost of providing a public service should be borne by users of the service rather than taxpayers in general.
Background
- Employers have been paying administrative fees for the application and issuance of work passes since 2005. When the fees were first introduced, they were set at a level that was substantially below cost recovery. The fees have not been revised since they were first introduced in 2005.
Key Features of the Changes
- The key features of the changes are:
Employment Pass, S Pass, Work Permit
i. Application fees for Employment Pass, S Pass and Work Permit will be increased from $10 to $20.
ii. Issuance fees for Employment Pass and S Pass will be increased to $120 and $70 respectively. These fees will also be charged per transaction instead of per year.
iii. The existing subsidy of $20 for employers who request for issuance or renewal of Work Permits via Work Permit Online1 (WPOL) will be withdrawn from 1 December 2011. MOM had previously introduced the subsidy to encourage more employers to transact online.
Other passes
i. Application and issuance fees for other passes will generally be adjusted in line with the Employment Pass, S Pass and Work Permit.
Enhanced Employment Pass Framework
From 1 January 2012, the qualifying salary for the Q1 Pass will be increased from $2,800 to at least $3,000 for young graduates, while older applicants would have to command a higher salary to qualify, commensurate with the work experience and quality they are expected to bring. The qualifying salary for the P2 Pass will be raised from $4,000 to $4,500. There will be no change in the qualifying salary for P1 Pass which remains at $8,000. Concurrently, educational qualifications requirements will be tightened.
Changes to Work Pass Administrative Fees
From 1 December 2011, administrative fees for most work passes will be increased.
| Employment Pass type |
Examples of eligibility criteria
|
From 1 Jan 2012
|
|
P1
|
|
|
|
P2
|
|
|
|
Q1
|
- Fixed monthly salary ≥ $2,800
- Possess recognised qualifications
- In lieu of acceptable qualifications, compensatory factors such as skills and years of experience may also be considered (a minimum of five years relevant work experience is recommended)
|
|
Fixed monthly salary refers to the total regular monthly payments to a foreign employee, including basic salary. The "fixed monthly salary" must not vary in quantum from month to month and must be paid to the foreign employee on a monthly basis, regardless of his performance
It does not include: additional payment by way of variable #overtime, bonus or commission; any form of reimbursements or in-kind payments; Any sum paid to an employee or contract worker to defray special expenses incurred by him owing to the special, unusual or hazardous nature of the employment; any productivity incentive payments and any allowances which are variable in nature; any contributions paid by the employer or employee to any pension or provident fund; or any gratuity payable on discharge or retirement.
