Govt to increase maid levy for non-concessionary employers

SINGAPORE — To ensure demand for foreign domestic workers (FDWs) is commensurate with need and avoid overreliance on maids, the Government will be increasing the FDW levy for a small group of employers who do not qualify for concessionary rates, or who employ multiple FDWs, from April next year.

Announcing this on Monday (Feb 19) at the reading of the Budget statement, Finance Minister Heng Swee Keat said the levy rate for the first FDW employed without levy concession will be raised from the current S$265 to S$300.

For the second FDW employed without levy concession, the rate will be increased to S$450.

The concessionary levy rate of S$60 per month remains unchanged. 

The FDW levy is a pricing mechanism aimed at regulating the number of such workers in Singapore. Mr Heng told the house on Monday that in the last decade, the number of FDWs in Singapore has gone up by 40 per cent, to 240,000 last year.

“We must ensure that FDW demand is commensurate with need, and avoid an over-dependency on FDWs,” the minister added.

Majority of Singaporean FDW employers — about 80 per cent — currently benefit from the levy concession under three schemes.

Employers with young children or grandchildren under 16 years old who live with them are eligible for the concessionary rate.

Those living with a person with a medical condition who needs help with at least one activity of daily living — like showering or feeding — can also qualify for concessionary rates.

Finally, under the aged person scheme, the employer, or the employer’s parents, parents-in-law, or grandparents, are eligible for the discounted rate, provided they are Singaporeans or Singapore permanent residents residing at the same address.

Given the improving life expectancy and health of Singaporeans, Mr Heng also announced on Monday that the qualifying age for levy concession under the aged person scheme will be raised from 65 to 67.

However, households with persons aged 65 and 66, who have enjoyed or are enjoying the concessionary rate before April 1 next year, will not be affected.

The regulation of foreign worker numbers in the Republic also got a brief mention on Monday, when Mr Heng announced that the Foreign Worker Levy rates would remain unchanged across all sectors.

The earlier announced increase in levy rates for the marine shipyard, and processing sectors — meant to kick in from July 1 this year — would again be deferred, for the third year, with rates to be announced next year.

The move was among the raft of measures the Government is announcing to help businesses here tide through near-term challenges, said Mr Heng.

To help “plug the gaps” in developing Singaporean’s capabilities, the Government will also be piloting the Capability Transfer Programme, aimed at supporting the transfer of skills from foreign specialists to Singaporean trainers and trainees.

“As we develop our people’s capabilities, we may find that skillsets in certain important fields are lacking,” said Mr Heng, adding that the Manpower Minister would be providing more details at the ministry’s Committee of Supply debate.