S Pass levy is a flat S$650/month across all sectors and quota tiers, while minimum qualifying salaries rise to S$3,600 (S$4,000 in Financial Services) from 1 January 2027.
Work Permit levies range from S$200 to S$900/month based on sector, skill tier (R1/R2), and quota usage, with 2028 rate hikes and tier mergers ahead.
Employment Pass (EP) holders incur zero levy, though minimum qualifying salaries increase to S$6,000 (S$6,600 in Financial Services) from January 2027.
Local Qualifying Salary (LQS) is S$1,800/month (or S$10.50/hour) as of 1 July 2026 to count as 1 full local headcount toward your foreign worker quota.
The foreign worker levy (FWL) is a monthly fee Singapore employers pay for each eligible Work Permit or S Pass holder. In 2026, the S Pass levy is S$650 per month, while Work Permit levy rates generally range from S$200 to S$900, depending on the sector, worker skill level and applicable quota tier. Employment Pass holders are not subject to the FWL.
Employers must pay the levy themselves and cannot deduct it from workers’ salaries. The levy is separate from the Skills Development Levy (SDL), salary, medical insurance and other employment costs.
This guide covers 2026 levy rates by sector, how to calculate the cost of hiring foreign workers, payment deadlines, waivers, penalties and announced changes through 2028. If you are planning a hire, Sleek also handles S Pass and Work Permit applications for employers.
What is the foreign worker levy (FWL)?
The Foreign Worker Levy (FWL) is a monthly pricing mechanism the Singapore government uses to regulate the number of foreign workers employed here. If your company employs Work Permit or S Pass holders, you pay it every month for each worker, as the MOM foreign worker levy rules set out.
The levy starts on the day the permit is issued and ends when the permit expires or is cancelled. It is an employer obligation, and MOM states that employers must not recover it from their workers.
Two regulatory tools work together to manage the foreign workforce:
- Foreign Worker Levy (FWL): a monthly per-worker charge. In tiered sectors it rises as your reliance on foreign labour grows.
- Dependency Ratio Ceiling (DRC): the maximum share of foreign workers in your total workforce. MOM sets it by sector and reviews it periodically.
How much is the foreign worker levy for my worker?
The levy depends on the type of work pass and, for Work Permit holders, the sector and applicable skill and quota categories.
S Pass: S$650 per month across sectors and levy tiers.
Construction: The rate depends on worker skill level, source country or region and whether the off-site construction rate applies.
Marine shipyard: The rate depends on whether the worker is higher-skilled or basic-skilled.
Process: The rate depends on skill level and worker source category.
Manufacturing: The rate depends on skill level and the company’s quota tier.
Services: The rate depends on skill level and the company’s quota tier.
Employment Pass: No foreign worker levy applies.
Identify the correct sector and worker category before using the tables below. If you are unsure which sector MOM assigns to your business, confirm your company’s classification before budgeting the levy.
Who needs to pay the FWL?
Any company employing Work Permit or S Pass holders must pay the levy. The pass type decides which levy applies.
- Work Permit holders: the sector-specific Work Permit levy rates below apply. Check the rules for renewing a Work Permit before the permit expires.
- S Pass holders: MOM harmonised the S Pass levy at S$650 a month across all sectors and tiers from 1 September 2025. If you are still hiring, read how to secure an S Pass.
- Employment Pass (EP) holders: no levy applies, according to MOM’s Employment Pass key facts.
| Pass | Typical hire | Levy | Employer CPF | SDL |
|---|---|---|---|---|
| Work Permit | Workers in approved sectors | Yes, sector rates | No | Yes |
| S Pass | Mid-level skilled staff | Yes, S$650 a month | No | Yes |
| Employment Pass | Executives, managers and professionals | No | No | Yes |
Sources: MOM (levy), our CPF guide (employer CPF) and CPF Board’s SDL guide.
What are the foreign worker levy rates for 2026 by sector?
The foreign worker levy rates 2026 employers pay depend on two things: the sector you operate in and the worker’s skill level. The Work Permit levy figures below come from the MOM foreign worker levy pages for each sector.
- Higher-skilled (R1): workers MOM recognises through qualifications, a recognised skills test certificate, relevant experience in Singapore or a fixed monthly salary.
- Basic-skilled (R2): workers who do not meet the R1 criteria.
Once you know your tier, you can run payroll for foreign staff with the levy built into your monthly budget. Rates run from S$200 to S$900 per worker a month across all sectors.
Construction sector
Construction allows 5 Work Permit holders for every local employee who earns the Local Qualifying Salary, and the levy depends on the worker’s source and skill level. These rates apply from 1 January 2024, per MOM’s construction sector page.
| Source | Higher-skilled (R1) monthly | Basic-skilled (R2) monthly |
|---|---|---|
| Malaysia, North Asian sources and PRC | S$300 | S$700 |
| Non-traditional sources | S$500 | S$900 |
| Off-site construction | S$250 | S$370 |
North Asian sources are Hong Kong, Macau, South Korea and Taiwan. Non-traditional sources are India, Sri Lanka, Thailand, Bangladesh, Myanmar, the Philippines, Bhutan, Cambodia and Laos. Workers approved or issued a permit without the required certification pay S$900, whatever their source.
Marine shipyard sector
The marine shipyard sector allows 3 Work Permit holders per qualifying local employee, with a 75% ceiling, per MOM’s marine shipyard page.
| Skill level | Monthly rate |
|---|---|
| Higher-skilled (R1) | S$350 |
| Basic-skilled (R2) | S$500 (S$600 from 2028) |
Process sector
The process sector covers plants making petroleum, petrochemical, specialty chemical and pharmaceutical products, plus their construction and maintenance contractors. MOM’s process sector page sets the rates below and allows 5 Work Permit holders per qualifying local employee.
| Source | Higher-skilled (R1) | Basic-skilled (R2) | R2 from 2028 |
|---|---|---|---|
| Malaysia, North Asian sources and PRC | S$200 | S$450 | S$600 |
| Non-traditional sources | S$300 | S$650 | S$800 |
Manufacturing sector
The manufacturing sector uses a tiered model with a 60% ceiling: the more foreign workers you employ relative to your total headcount, the higher your tier. The rates below follow MOM’s manufacturing sector page (with Tiers 1 and 2 merging in 2028):
| Quota tier | Higher-skilled (R1) monthly | Basic-skilled (R2) monthly | From 2028 (R1 / R2) |
| Tier 1: up to 25% of the total workforce | S$250 | S$370 | S$300 / S$470 (Merged Tier 1 & 2) |
| Tier 2: above 25% to 50% | S$350 | S$470 | S$300 / S$470 (Merged Tier 1 & 2) |
| Tier 3: above 50% to 60% | S$550 | S$650 | S$550 / S$650 (No change) |
Services sector
The services sector has the tightest ceiling at 35%, so there is less headroom for foreign hiring than in construction or manufacturing. MOM’s services sector page lists the tiers below (with Tiers 1 and 2 merging in 2028):
| Quota tier | Higher-skilled (R1) monthly | Basic-skilled (R2) monthly | From 2028 (R1 / R2) |
| Tier 1: up to 10% of the total workforce | S$300 | S$450 | S$400 / S$600 (Merged Tier 1 & 2) |
| Tier 2: above 10% to 25% | S$400 | S$600 | S$400 / S$600 (Merged Tier 1 & 2) |
| Tier 3: above 25% to 35% | S$600 | S$800 | S$600 / S$800 (No change) |
How much does a foreign hire really cost you each month?
The FWL Singapore employers pay is only one line in the monthly cost of a foreign hire. Below is an illustrative example for one S Pass holder based on the S$3,600 minimum qualifying salary taking effect on 1 January 2027 for new applications (up from S$3,300 in 2026; Financial Services rises from S$3,800 to S$4,000):
Salary: S$3,600
S Pass levy: S$650
Skills Development Levy (SDL): 0.25% of S$3,600 = S$9.00 (SDL is charged at 0.25% of gross monthly wages, with a minimum of S$2 and a maximum cap of S$11.25* at S$4,500 of wages)*
Total: S$3,600 + S$650 + S$9.00 = S$4,259.00 a month
The Skills Development Levy applies to all employees, and employers pay no CPF for foreign work pass holders, as our guide to CPF contributions for employers explains. The total excludes housing, mandatory medical insurance (at least S$60,000/year coverage), and other benefits. Employment Pass holders don’t attract the levy, though their minimum qualifying salary also rises from S$5,600 to S$6,000 (S$6,600 in Financial Services) from 1 January 2027 for new hires and 1 January 2028 for renewals.
How to calculate the foreign worker levy in Singapore?
To calculate your monthly foreign worker levy, identify the worker’s pass type, determine the applicable sector and levy category, and check the rate that applies to your company.
Follow these steps:
Step 1: Identify the work pass.
Employment Pass holders are not subject to the foreign worker levy. S Pass holders attract a monthly levy of S$650. For Work Permit holders, the rate depends on the applicable sector-specific rules.
Step 2: Determine the applicable sector and worker category.
For Work Permit holders, identify your sector and check whether the worker qualifies for the higher-skilled (R1) or basic-skilled (R2) rate. Depending on the sector, the rate may also depend on the worker’s source category or your company’s quota tier.
Step 3: Find the applicable monthly rate.
Use the relevant sector table above to identify the rate. Do not assume that the same rate applies to every Work Permit holder.
Step 4: Calculate the total levy.
Multiply the applicable monthly rate by the number of workers liable for that rate during the period.
For example, if a company employs five S Pass holders for a full month, its levy is:
5 workers × S$650 = S$3,250 per month
For a full 12 months at the same rate, the total would be S$39,000.
Step 5: Account for partial months and other employer costs.
If a worker is liable for the levy for only part of a month, check MOM’s rules for calculating the amount payable. Budget separately for salary, the Skills Development Levy (SDL), medical insurance and other applicable employment costs.
The foreign worker levy is an employer obligation and cannot be deducted from the worker's salary.
How do foreign worker quota and levy rates work together?
The foreign worker levy and the dependency ratio ceiling (DRC) serve different purposes.
Foreign worker levy: The monthly charge the employer pays for each applicable worker.
Dependency ratio ceiling (DRC): The maximum proportion of foreign workers a company can employ in its sector.
Quota utilisation tier: In sectors with tiered levy rates, the company’s utilisation level affects the applicable rate.
Local Qualifying Salary (LQS): The salary threshold used to determine how local employees count towards the company’s foreign-worker quota.
As of 1 July 2026, a qualifying local employee earning at least S$1,800 per month counts as one local employee for quota purposes. An employee earning at least S$900 but less than S$1,800 counts as half a local employee.
MOM also sets sector-specific DRCs: 83.3% for construction and process, 75% for marine shipyard, 60% for manufacturing and 35% for services. Separate limits can apply to particular pass types or worker source categories.
Before hiring, check both your available quota and the levy rate that will apply. A worker’s levy cannot be determined from the DRC alone.
How to pay the foreign worker levy in Singapore?
MOM makes your levy bill available on the 3rd working day of each month. You must pay each month’s levy by the 17th of the following month, or the next working day if the 17th is a weekend or public holiday.
Here is how to pay foreign worker levy bills on time: apply for GIRO, which MOM recommends, so the levy is deducted from your bank account on the due date. Keep enough funds in the account by 6pm one working day before the deduction, and check that any GIRO limit covers the bill.
If GIRO is not yet approved, you can pay by PayNow QR using MOM’s S Pass levy payment guide or Work Permit levy payment guide.
What happens if you pay the foreign worker levy late?
MOM charges a late payment penalty if you do not pay the full levy on time. The penalty is 2% of the unpaid levy for each month overdue, pro-rated by the days late, with a minimum of S$20 (or 30% of the unpaid levy, if that is lower), per MOM’s penalty calculation.
You can estimate a bill with the MOM foreign worker levy penalty calculator. Late or missed payments can also lead to the following:
- Revoked passes: MOM revokes your existing Work Permits and S Passes the following month if you miss levy payments for two consecutive months.
- No new applications: you cannot apply for new Work Permits or S Passes, and companies where you are a partner or director may also be blocked.
- Legal action: MOM can take legal action to recover the unpaid levy.
Can you get a waiver on the foreign worker levy?
MOM waives the levy only in specific situations, listed on its levy waiver page.
- Onboard programme: the waiver is processed automatically when the worker attends the programme.
- Overseas leave: at least 7 consecutive days, capped at 60 calendar days per calendar year.
- Hospitalisation leave: issued by a Singapore-registered doctor, also capped at 60 calendar days per calendar year.
What is changing for the levy from 2026 to 2028?
- Local Qualifying Salary: MOM now counts a local employee earning at least S$1,800 a month as 1 local employee, up from S$1,600 from 1 July 2026. Those earning S$900 to below S$1,800 count as 0.5, so review your headcount mix with our Work Permit quota guide.
- Marine shipyard: the basic-skilled rate rises from S$500 to S$600 from 2028.
- Process: the basic-skilled rate rises from S$450 to S$600 (Malaysia, North Asian sources and PRC) and from S$650 to S$800 (non-traditional sources) from 2028.
- Manufacturing: Tiers 1 and 2 merge from 2028, at S$300 for higher-skilled and S$470 for basic-skilled workers.
- Services: Tiers 1 and 2 merge from 2028, at S$400 for higher-skilled and S$600 for basic-skilled workers.
How can you reduce your levy costs?
- Upgrade workers from R2 to R1. Sponsoring workers to pass a recognised skills test can reclassify them as higher-skilled, which cuts the monthly levy by S$120 to S$400 per worker depending on the sector.
- Manage your DRC tier. In manufacturing and services your rate rises as you approach the ceiling, so plan hiring against it.
- Claim waivers promptly. Apply for overseas and hospitalisation leave waivers when they apply, and track credits in your levy account.
- Set up GIRO. Auto-deductions remove the risk of missed payments and the penalties that follow.
Budget the levy alongside salary and SDL, and check MOM’s pages for the latest rates before each hire. For more employer guides, browse the Sleek resources hub.
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FAQs on foreign worker levy
How do I check my MOM foreign worker levy bill?
Log in to MOM’s online levy service, called Check and pay foreign worker levy, to view your bill. MOM makes the latest bill available on the 3rd working day of every month. The due date is stated on the bill itself.
Do I pay the foreign worker levy for Employment Pass holders?
No. MOM’s key facts on the Employment Pass state that no foreign worker levy or quota is required for EP holders. You still pay the Skills Development Levy on their wages, and the levy applies only to your Work Permit and S Pass holders.
Can I deduct the levy from my worker's salary?
No. The levy is an employer cost, and the Employment of Foreign Manpower Act says employers must not recover it from their workers. MOM takes action against employers who try, and those convicted may be fined, jailed or barred from hiring foreign workers. See MOM’s guidance on passing on levy costs.
Can directors of my new company get a Work Permit?
Directors of a new company normally need an Employment Pass or an EntrePass, not a Work Permit, which covers migrant workers in approved sectors. The right pass depends on your role, salary and business plan. Our guide to Singapore work passes explained compares the options.
