New measures to help businesses cope with the coronavirus pandemic have been rolled out by the Ministry of Manpower (MOM).
In a statement yesterday, MOM said that with immediate effect, small and medium-sized enterprises (SMEs) will get a three-month extension for paying the levy for the foreign workers they hire. This is expected to give these companies more flexibility with managing their cash flow.
Another measure announced is a waiver of up to 90 days on levies for foreign workers on overseas leave. This also takes effect immediately.
The last measure is a refund on the "man-year entitlement" for foreign workers in construction companies.
Under the man-year entitlement framework, these firms can 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 can apply to the Building and Construction Authority for the refund scheme from April 1 for a period of six months.
MOM also urged companies with extra manpower to give priority to locals in keeping their jobs. These firms should also allow their foreign workers to be transferred to other firms facing a manpower shortage.
For the extension of the SME foreign worker levy payment, about 60,000 companies can benefit from this relief measure, and it will apply to levies incurred this year.
SMEs will have 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 by the 14th of the following month.
Employers who do not make the payment on time will have their new and renewal work pass applications rejected. If they cannot make payment on time for two consecutive months, all existing work passes under that employer will be revoked.
MOM urged companies that benefit from the extension to keep their existing workers and not employ new foreign workers. The ministry will not allow new applications of work passes from these firms, although it will accept renewals.
The late payment penalty of 2 per cent a month will still apply to levy payments which are extended.
For the 90-day levy waiver for foreign workers on overseas leave, this was extended due to tighter border restrictions and difficulties workers may face when returning to Singapore.
It applies to firms that send their foreign workers home from now until the end of this year.
The current levy waiver for up to 60 days applies to foreign workers who go on overseas home leave for at least seven consecutive days.
More information on all the measures is available on the MOM website.
