Introduction
The Ministry of Manpower (MOM) has announced that all employers of foreign domestic workers (FDWs) must check and pay the foreign worker levy (FWL) on a monthly basis starting from 2025. This move is aimed at ensuring that all FDWs are legally employed in Singapore and that their employers are fulfilling their obligations under the Employment of Foreign Manpower Act (EFMA).
Background
The FWL is a monthly levy that is imposed on employers of FDWs. The levy rates vary depending on the nationality of the FDW and the type of work permit that they hold. The current levy rates for FDWs are as follows:
- FDWs from ASEAN countries: S$300 per month
- FDWs from non-ASEAN countries: S$450 per month
Implications for Employers
The new requirement to check and pay the FWL on a monthly basis will have several implications for employers of FDWs.
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Increased Administrative Burden: Employers will need to set up a system to track the FWL payments for their FDWs. This may require additional administrative work, such as setting up a reminder system or using a payroll software that can automate the process.
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Higher Costs: The FWL is a significant expense for employers of FDWs. The new requirement to pay the levy on a monthly basis will mean that employers will need to budget for this expense on a regular basis.
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Increased Risk of Non-Compliance: Employers who fail to check and pay the FWL on time may be subject to penalties. The penalties for non-compliance can be significant, so employers need to be aware of their obligations and take steps to ensure that they are meeting them.
Benefits of the New Requirement
The new requirement to check and pay the FWL on a monthly basis is expected to have several benefits.
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Improved Compliance: The new requirement is expected to improve compliance with the EFMA. By requiring employers to check and pay the FWL on a monthly basis, MOM will be able to better monitor compliance and take action against employers who are not fulfilling their obligations.
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Increased Revenue for the Government: The FWL is a source of revenue for the government. The new requirement to check and pay the levy on a monthly basis is expected to increase the amount of revenue that the government collects from this source.
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Protection for FDWs: The FWL helps to protect FDWs by ensuring that they are legally employed in Singapore and that their employers are fulfilling their obligations under the EFMA. The new requirement to check and pay the levy on a monthly basis will help to further protect FDWs from exploitation and abuse.
Conclusion
The new requirement to check and pay the FWL on a monthly basis is a significant change for employers of FDWs. Employers need to be aware of the implications of this change and take steps to ensure that they are meeting their obligations under the EFMA. The new requirement is expected to improve compliance, increase revenue for the government, and protect FDWs from exploitation and abuse.
MOM’s 2025 Levy Check: What Employers of FDWs Need to Know
The Foreign Worker Levy (FWL)
The FWL is a monthly levy that is imposed on employers of FDWs. The levy rates vary depending on the nationality of the FDW and the type of work permit that they hold. The current levy rates for FDWs are as follows:
- FDWs from ASEAN countries: S$300 per month
- FDWs from non-ASEAN countries: S$450 per month
The FWL is used to fund various programs and services that support FDWs in Singapore, such as the Foreign Domestic Worker Centre (FDWC) and the Migrant Workers’ Centre (MWC).
MOM’s New Requirement
MOM has announced that all employers of FDWs must check and pay the FWL on a monthly basis starting from 2025. This move is aimed at ensuring that all FDWs are legally employed in Singapore and that their employers are fulfilling their obligations under the EFMA.
Previously, employers were only required to check and pay the FWL on a quarterly basis. The new requirement to pay the levy on a monthly basis will mean that employers will need to set up a system to track the FWL payments for their FDWs.
Implications for Employers
The new requirement to check and pay the FWL on a monthly basis will have several implications for employers of FDWs.
-
Increased Administrative Burden: Employers will need to set up a system to track the FWL payments for their FDWs. This may require additional administrative work, such as setting up a reminder system or using a payroll software that can automate the process.
-
Higher Costs: The FWL is a significant expense for employers of FDWs. The new requirement to pay the levy on a monthly basis will mean that employers will need to budget for this expense on a regular basis.
-
Increased Risk of Non-Compliance: Employers who fail to check and pay the FWL on time may be subject to penalties. The penalties for non-compliance can be significant, so employers need to be aware of their obligations and take steps to ensure that they are meeting them.
Benefits of the New Requirement
The new requirement to check and pay the FWL on a monthly basis is expected to have several benefits.
-
Improved Compliance: The new requirement is expected to improve compliance with the EFMA. By requiring employers to check and pay the FWL on a monthly basis, MOM will be able to better monitor compliance and take action against employers who are not fulfilling their obligations.
-
Increased Revenue for the Government: The FWL is a source of revenue for the government. The new requirement to check and pay the levy on a monthly basis is expected to increase the amount of revenue that the government collects from this source.
-
Protection for FDWs: The FWL helps to protect FDWs by ensuring that they are legally employed in Singapore and that their employers are fulfilling their obligations under the EFMA. The new requirement to check and pay the levy on a monthly basis will help to further protect FDWs from exploitation and abuse.
Tips for Employers
Employers who are required to check and pay the FWL on a monthly basis can take the following steps to ensure compliance:
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Set up a System: Establish a system to track the FWL payments for your FDWs. This system should include a reminder system to ensure that you pay the levy on time.
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Use a Payroll Software: Consider using a payroll software that can automate the process of calculating and paying the FWL. This can help to reduce the administrative burden on employers.
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Be Aware of the Penalties: Be aware of the penalties for non-compliance with the EFMA. The penalties for non-compliance can be significant, so it is important to take steps to ensure that you are meeting your obligations.
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Contact MOM: If you have any questions about the FWL or the new requirement to check and pay the levy on a monthly basis, please contact MOM for clarification.
Conclusion
The new requirement to check and pay the FWL on a monthly basis is a significant change for employers of FDWs. Employers need to be aware of the implications of this change and take