TaxSavvySG

Cost of hiring a foreign employee

Besides salary, what does a foreign hire cost my company?

The situation

Costs can include MOM application and issuance fees, levy for S Pass and Work Permit, SDL, insurance or bonds for some passes, and agency fees.

The law

  • Employment of Foreign Manpower Act 1990: Foreign employees need a valid work pass; levies apply to Work Permit and S Pass holders
  • Skills Development Levy Act 1979: Employers pay SDL for all employees, local and foreign

What it means for you

EP holders have no levy, but S Pass and Work Permit holders do. Medical insurance requirements apply to some passes. Build a full cost sheet before making the offer.

What to do

  1. List MOM fees for the pass.
  2. Add levy and SDL.
  3. Add insurance and agency costs.
  4. Compare with local hiring.

We can do this for youHiring foreign staff: work pass and levy basics: SGD 300

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