|
Annex
IMPACT OF HIGHER DC FOR
COMPANIES (WITHOUT S-PASS HOLDERS)
For the
manufacturing sector, the increase in DC from 50% to 60%
amounts to a 50% increase in allowable work permit holders:
| Manufacturing Sector |
Before increase in DC |
With effect from 1 July
2005 |
| Dependency Ceiling |
50% |
60% |
| |
|
|
| Locals |
50 |
50 |
| Work Permit Holders (WPs) |
50 |
75 |
| Total Workforce (Locals + WPs) |
100 |
125 |
| |
|
|
| Dependency Ratio Locals : WPs |
1 : 1 |
1 : 1.5 |
For the services
sector, the increase in DC from 30% to 40% amounts to a 56%
increase in allowable work permit holders:
| Services Sector |
Before increase in DC |
With effect from 1 July
2005 |
| Dependency Ceiling |
30% |
40% |
| |
|
|
| Locals |
70 |
70 |
| Work Permit Holders (WPs) |
30 |
47 |
| Total Workforce (Locals + WPs) |
100 |
117 |
| |
|
|
| Dependency Ratio Locals : WPs |
1 : 0.43 |
1 : 0.67 |
Glossary for Technical Terms
Dependency Ceiling
(DC)
The DC stipulates the proportion of foreign workers a firm can
hire. This prevents employers from relying too heavily on
foreign workers at the expense of local employment.
Foreign Worker Levy
The levy puts a price on the
employment of a foreign worker. The levy serves to moderate
demand for foreign workers and to narrow the wage gap between
local and foreign workers.
Skilled Worker
A skilled foreign worker is one who possesses at least a SPM
qualification or its equivalent, or a NTC-3 (Practical) Trade
Certificate [also known as ITE’s Skills Evaluation Certificate
(Level 1) from July 2002] that is relevant to the worker’s
occupation. |
Previous FrontPage Edition 17 Mar
2005
