What is the Foreign Worker Levy (FWL)?

The Foreign Worker Levy is a monthly levy the Ministry of Manpower (MOM) charges employers for each Work Permit and S Pass holder they employ. It is a pricing mechanism to manage the number of foreign workers in Singapore, not a tax on the worker — the employer pays it, and it cannot be recovered from the employee's salary.

Who has to pay the Foreign Worker Levy?

Employers pay FWL for Work Permit holders and S Pass holders. You do not pay FWL for Employment Pass (EP) holders, Singapore Citizens or Permanent Residents. EP holders are higher-salary professionals and sit outside the levy-and-quota system.

Does the Foreign Worker Levy replace CPF?

They are separate. Employers do not pay CPF for foreign pass holders at all, and they pay FWL instead for Work Permit and S Pass holders. So for a foreign worker you pay FWL (no CPF); for a Citizen or PR you pay CPF (no FWL). Both groups still attract the Skills Development Levy (SDL).

How is the levy rate determined?

Four things set the monthly rate: the pass type (Work Permit vs S Pass), your sector (such as Services, Manufacturing, Construction, Marine Shipyard or Process), the worker's skill level (skilled workers — those who meet MOM's qualification criteria — are charged a lower rate), and your tier (firms above a certain proportion of foreign workers pay a higher tier). MOM publishes the current dollar amounts; check the official levy table for your exact rate.

When and how do I pay the Foreign Worker Levy?

FWL is billed monthly and is usually deducted by GIRO around the 17th of the following month. You must maintain a valid GIRO arrangement with the CPF Board (which collects the levy on MOM's behalf). Late or failed payment can lead to late fees and, ultimately, the cancellation of work passes, so the GIRO account must always have sufficient funds.

Is the levy prorated if a worker joins or leaves mid-month?

Yes. FWL is calculated on a daily basis for workers whose passes start or end partway through a month, so you are charged for the days the worker held a valid pass that month — not a full month's levy.

Foreign Worker Levy (FWL) in Singapore (2026): Rates, Sectors and How to Pay

If you employ Work Permit or S Pass holders in Singapore, the Foreign Worker Levy (FWL) is a real monthly cost that sits outside CPF — and getting the rate wrong, or missing a GIRO payment, has consequences that reach as far as your workers' passes being cancelled.

This guide explains what FWL is, who pays it, how the rate is set, and how it differs from the other statutory costs in your payroll.

What the Foreign Worker Levy is

The Foreign Worker Levy is a monthly levy the Ministry of Manpower (MOM) charges employers for each Work Permit and S Pass holder they employ. It is a pricing-and-quota mechanism to manage Singapore's reliance on foreign manpower — not a tax on the worker. The employer pays it, and the law does not allow you to deduct it from the worker's salary.

Crucially, FWL is not CPF. Employers do not pay CPF for foreign pass holders at all. For these workers, FWL is the equivalent recurring cost — but it is set by MOM, billed separately, and follows entirely different rules.

Who pays it — and who is exempt

Worker type	Foreign Worker Levy?	CPF?
Work Permit holder	Yes	No
S Pass holder	Yes	No
Employment Pass (EP) holder	No	No
Singapore Citizen / PR	No	Yes

Employment Pass holders are higher-salary professionals and sit outside the levy-and-quota framework. Citizens and PRs attract CPF instead. (For how the pass types differ across your whole payroll, see payroll for foreign employees.)

What sets the rate

There is no single FWL figure. The monthly rate for each worker depends on four factors:

Pass type — Work Permit and S Pass have different levy schedules.
Sector — MOM sets different rates for sectors such as Services, Manufacturing, Construction, Marine Shipyard and Process.
Skill level — skilled workers (those who meet MOM's qualification or salary criteria) are charged a lower levy than basic/unskilled workers.
Tier (quota) — firms are subject to a Dependency Ratio Ceiling (the maximum share of foreign workers). Workers employed within a basic tier are charged less than those in a higher tier, which kicks in as you employ proportionally more foreign workers.

Because these dollar amounts are reviewed periodically, always confirm the current figure against MOM's official levy table rather than relying on a number you saw last year. The structure above is stable; the exact dollars are not.

Note: AimmPayroll currently supports the Services and Manufacturing sectors for FWL; other sectors are on the roadmap.

How it is calculated and paid

Monthly. A levy accrues for every day a worker holds a valid Work Permit or S Pass.
Prorated to the day. If a pass starts or ends mid-month, you pay only for the days it was valid that month — not a full month.
Paid by GIRO. The levy is collected by the CPF Board on MOM's behalf, usually deducted around the 17th of the following month. You must keep a valid GIRO arrangement with sufficient funds.

Late or failed levy payment can lead to late-payment penalties and, if unresolved, to the cancellation or non-renewal of work passes — which is why the GIRO account behind your foreign-worker payroll cannot be allowed to run dry.

FWL vs CPF vs SDL — three different statutory costs

Cost	Who it applies to	Who sets it	When it's paid
CPF	Citizens and PRs	CPF Board	By the 14th of the following month, via CPF eZpay
FWL	Work Permit & S Pass holders	MOM	Monthly by GIRO (~17th)
SDL	All employees, including foreigners	SkillsFuture Singapore	With CPF, by the 14th (SDL guide)

The common SME mistake is treating these as one thing. They are three separate obligations, with three different bases and two different agencies. A worker on an S Pass attracts FWL and SDL but not CPF; a Singapore Citizen attracts CPF and SDL but not FWL.

Where it trips up Singapore SMEs

Mixing CPF and FWL workers in one calculation. The system has to know each worker's pass type to apply the right cost — CPF for locals/PRs, FWL for Work Permit/S Pass.
Stale skill or tier classifications. A worker who becomes "skilled," or a firm that crosses into a higher tier, changes the levy — and that change is easy to miss.
Pass expiry. An expired pass changes liability immediately, so pass-expiry tracking belongs in the same place as payroll.

AimmPayroll Asia keeps pass type, sector and pass-expiry data on the same employee record that drives the payroll run, so FWL, CPF and SDL each apply to the right people without a separate spreadsheet. You can start free for up to three employees, or see full pricing.