Understanding Foreign Worker Levy (FWL)

Foreign Worker Levy (FWL) is a levy paid by employers for employing foreign workers. While they are not required to pay CPF contributions for foreign workers, employers are liable to pay monthly levies to hire employees who hold Work Permits or S Passes. Foreign workers on the Foreign Worker Levy Scheme who are granted Singapore Permanent Resident status are placed on the CPF scheme from the date Permanent Resident status is granted.

Peoplesoft Payroll for Singapore supports Foreign Worker Levy (FWL) payment.

Note: The government uses a combination of quota restrictions and the imposition of a foreign worker levy as methods to control the foreign worker population. A levy is imposed on every employer in respect of each employee who is a non-resident work permit holder. The levy is not imposed on foreign workers who are permanent residents— they come under the CPF scheme instead. There is no employee contribution to FWL. The FWL and CPF schemes are mutually exclusive. An employer who pays the levy for foreign workers is not required to make CPF contributions for those workers. A work permit holder who is subsequently granted permanent resident status will come under the CPF scheme instead. However, the employer is required to pay the Skills Development Levy (SDL) for the workers at the prevailing rate and wage ceiling.