Singapore to raise worker levies

Singapore to raise worker levies

SINGAPORE (Reuter): Singapore announced new rules on the
hiring of foreign workers yesterday, aimed at increasing the
skills levels of foreign workers and at letting local businesses
expand during any economic upturn.

Levies on foreign maids and foreign workers in the
manufacturing and the services sectors will rise from Singapore
$300 (US$205) to S$330 ($226), a Labor Ministry statement said.

Effective April 1, 1995, the ten percent rise is "to moderate
rapid increase in the demand" for such employees.

The levies, all of which are paid to the government monthly,
will also rise 10 percent for unskilled construction foreign
workers and unskilled marine foreign workers.

But levies for skilled construction foreign workers and
skilled marine foreign workers will be reduced, in each case by
20 percent from S$250 ($171) to S$200 ($137).

The reduction is designed "to provide greater incentive for
employers in these sectors to upgrade the skills of their foreign
workers, and hence improve their productivity," the statement
said.

Rules for the manufacturing, service and marine sectors were
relaxed to allow employers greater flexibility in their hiring
policies, so that they might hire more foreign workers during a
business upturn.

This change, effective Dec. 1, will, for example, allow the
hiring of up to three foreigners for every one local worker
instead of the current limit of up to two foreigners for each
local.

The statement said there are currently more than 300,000
foreign workers in Singapore, constituting more than 18 percent
of the city state's total workforce.