Singapore: Increased levies on S Pass permits
Description
On 23 February 2010, the Ministry of Manpower released its plans to reduce Singapore's dependence on foreign labor. As a key measure, the Ministry will increase the levies on so-called "S Pass" work permits starting 1 July 2010.
Up from S$50 per month per worker, companies will be subject to a higher levy depending on the ratio of S pass holders in their workforce. Companies with a ratio of less than 20 percent will be charged S$100/month from 1 July 2010. Companies exceeding this ratio will have to pay S$120/month and worker.
In subsequent steps until July 2012, these levies will be increased further to S$150/month and worker for companies employing 15 percent or less S pass holders. Companies with S pass holders accounting for more than 15 percent of the total workforce will be subject to a levy of S$250/month and worker.
S passes were introduced by the Singaporean government to allow companies to hire foreign workers of medium skills with earnings no less than S$ 1'800/month. S pass holders may not exceed a quarter of a company's workforce.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: Yes
Date of inception: 1 Jul 2010
GTA Evaluation: Amber
Source:
Ministry of Manpwer. (23 February 2010). Changes To Foreign Worker Levy For Sustainable Growth. Available at http://www.mom.gov.sg/Home/Press_Release/Pages/20100223-FW_Levy.aspx
Ministry of Manpower. (23 February 2010). Annexes - Changes to FW Levy. Available at http://www.mom.gov.sg/Home/Press_Release/Documents/Annexes-%20Changes%20...
Ministry of Manpower. (20 March 2010). FAQs for foreign worker levy. Available at http://mom.gov.sg/Home/Press_Release/Documents/FAQs%20for%20foreign%20wo...
Government Response:
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