Breakdown of Annual Foreign Worker Levies Collected
Ministry of ManpowerSpeakers
Summary
This question concerns Mr Louis Ng Kok Kwang’s inquiry regarding the breakdown of annual foreign domestic worker (FDW) levies and their potential use to subsidize needy households or assist FDWs. Minister for Manpower Lim Swee Say explained that levies are directed to the Consolidated Fund to finance government expenditures, including the means-tested FDW Grant of $120 per month. He noted that eligible households with children, elderly persons, or those requiring daily assistance benefit from a concessionary levy rate of $60 instead of the full $265. Regarding FDWs in exceptional circumstances, Minister for Manpower Lim Swee Say stated they can seek humanitarian aid from non-government organisations such as the Centre for Domestic Employees. He concluded that the government would continue to support the work of these organisations instead of providing direct financial assistance to FDWs from the collected levies.
Transcript
8 Mr Louis Ng Kok Kwang asked the Minister for Manpower (a) what is the annual breakdown of foreign worker levies which have been collected each year since 2012; and (b) whether the Ministry will consider channelling some of these levies into a fund to provide subsidies for (i) households who need foreign domestic workers (FDWs) but are unable to afford the costs or (ii) financial assistance to FDWs who require help in exceptional circumstances.
Mr Lim Swee Say: The annual breakdown of foreign domestic worker (FDW) levies collected since 2012 is as follows:
Similar to other sources of Government revenue, the levies collected go into the Consolidated Fund. This is then used to fund all areas of Government expenditures, including financial assistance schemes to support households in need.
One such assistance scheme is the FDW Grant administered by the Agency of Integrated Care. Eligible households with family members who require permanent assistance with three or more Activities of Daily Living (ADLs) can apply for an FDW Grant of $120 per month. This grant is means-tested and can be used to offset the cost of hiring an FDW. Since 2012, over 17,000 have benefited from the FDW Grant.
Additionally, Singaporean households with children, elderly persons or persons who require help with at least one ADL are offered a concessionary FDW levy rate of $60, much lower than the full FDW levy rate of $265.
FDWs who are in need of financial assistance can already turn to non-government organisations (NGOs) like the Centre for Domestic Employees. These NGOs play an important role and have raised funds to provide humanitarian aid to FDWs. Instead of the Government providing direct financial assistance to FDWs, we should continue to support the work of these NGOs.