New Measures by MOM Due to COVID-19 Include Lowering Foreign Worker Levies or Delaying Their Payment

By
Siti Hawa
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It seems like the COVID-19 situation is changing rapidly every day, and thus, new measures are being introduced every other day.

Just recently, it was announced that gatherings with less than 250 people are good to go as long as social distancing measures are implemented.

But now, gatherings have to be limited to just 10 people, while entertainment outlets like cinemas and karaoke outlets have to close their doors beginning 26 March, 11.59pm.

It sure sounds like a lockdown doesn’t it?

So is it really surprising that this article will announce even more new measures?

New Measures by MOM Due to COVID-19 Include Lowering Foreign Worker Levies or Delaying Their Payment

The Ministry of Manpower (MOM) has launched a series of new measures in order to help businesses deal with the coronavirus outbreak.

MOM said in a statement on 24 March, Tuesday that with immediate effect, small and medium-sized enterprises (SMEs) will get a three-month extension for paying the levy for foreign workers they hire.

This has been implemented in the hopes that it will give companies more flexibility with managing their cash flows.

Secondly, there will be an up to 90-day waiver on levies for foreign workers on overseas leave, which will be effective immediately.

The final measure is a refund on the “man year entitlement” for foreign workers in construction firms.

The man-year entitlement framework allows firms to pay lower levies for a certain number of foreign workers, depending on the project. The lower levies are paid monthly for a year.

With the refund scheme, the lower levy for a foreign worker is not forfeited if the worker leaves or is unable to work. Instead, the unused lower levy benefit can be used for another worker.

Companies will be able to apply to the Building and Construction Authority for the refund scheme beginning 1 April for a period of six months.

MOM urged that companies with extra manpower prioritize locals by letting them keep their jobs.

Extension Will Benefit 60,000 Firms

MOM said that the extension of the SME foreign worker levy payment means that around 60,000 firms can benefit from this relief measure which will apply to levies incurred in 2020.

SMEs will have an addition of up to five months to pay for the foreign worker levy from the month it is incurred. Currently, the foreign worker levy incurred is due to be paid by the 14th of the following month.

The consequence of not making the payment on time includes having new and renewal work pass applications rejected.

If employers are not able to make payment punctually for two consecutive months, all existing work passes under the employer will be revoked.

MOM also encourages companies that will benefit from the extension to keep their existing workers and not employ new foreign workers as these new applications will not be accepted.

Only renewals will be accepted.

The 90-day levy waiver for foreign workers on overseas leave was extended following tighter border controls and the fact that the workers may have a hard time returning to Singapore.

MOH Will Be Limiting The Number Of Entry Approvals For Work Pass Holders Into Singapore

On 18 March, the Ministry of Health released an advisory discouraging all travel overseas.

MOM also said that it will be limiting the number of entry approvals for work pass holders into Singapore.

They also added that a very small number of work pass holders would be allowed to enter Singapore.

Instead, priority will be given to essential services like healthcare and transport.

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Siti Hawa
Email: [email protected]