Foreign workers in Singapore have their own quota; this policy is crucial to maintain a balance of labor and ensure eligibility for foreign workforce. The following outlines the system and requirements for employing foreign individuals, If you employ a foreign worker in Singapore, you must understand that there is a quota for hiring foreign labor, as this is already a government policy regarding the employment of foreign workers.
Overview:
What is the foreign worker quota?
Employing foreign workers in Singapore is subject to a specific and highly limited quota. The number of foreign workers that a company can hire is determined by the industry and the size of the company. The Singapore government implements these quotas for foreign workers to ensure that local Singaporeans have access to employment opportunities. The quotas vary depending on the economic sector. For instance, the construction industry has a higher quota for foreign workers, while the service industry has a lower one.
The system for employing foreign workers has been enforced for several years and has undergone multiple revisions to align with domestic requirements. The Singaporean government consistently evaluates the quota system to guarantee its effectiveness and efficiency. The quota system extends beyond limiting the number of foreign workers to include levies and other policies.
The construction industry is one of the sectors heavily reliant on foreign labor. The quota system ensures that the construction industry has access to the necessary workforce while regulating the number of foreign workers in the country, and for the service industry, there is a lower quota for foreign workers in Singapore. The service industry encompasses sectors such as retail, hospitality, and food and beverage.
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LEVY
The Singaporean government prioritizes local workers by placing restrictions on the number of foreign workers a company can hire, determined by the company’s size and industry. Consequently, companies need to ensure that the foreign workers they employ comply with the government-set quota. Moreover, companies are obligated to pay a levy.
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What is LEVY
A levy is a pricing mechanism designed to regulate foreigners in Singapore. You are required to pay a monthly levy for each holder of a work permit. The levy obligation begins on the date the temporary work permit or direct work permit is issued and ends when the permit period is canceled or expires. The levy is calculated based on the ratio of Local Workers to Foreign Workers in the company. It’s important to note that quotas and levy policies apply to all industries in Singapore.
Calculate The worker quota in singapore
Calculating the quota for Singapore foreign worker quota can be a complex matter for businesses in Singapore. This quota is determined based on the number of local employees and the size of the company. To calculate this, employers need to consider several factors. Employers must establish the Dependency Ratio Ceiling (DRC), which also determines the Ratio of Foreign Workers that a company can employ. The DRC varies across sectors and is periodically adjusted by the government.
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