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     Foreign Worker Levy and S Pass quota to go up

Continued from FrontPage of Article


Annex A

Background to Foreign Worker Levy Changes

The skilled foreign worker levy was reduced substantially in 1998 from $200 to $100 and again in 1999 to $30 to help companies tide over the economic downturn. Since then, the levy has been progressively restored to $100 from 1 January 2006 as the economy recovered. As part of the continued restoration of the levy cuts, the skilled levy will be raised to $150 for all sectors, to moderate demand for foreign workers. This higher skilled levy of $150 will take effect from 1 January 2007 to allow companies to make the necessary adjustments in response to the increase.