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.