Using Revenues from Adjustment in Foreign Worker Levy to Subsidise Training of Lower-wage Work Permit Workers

10 Mr Gan Thiam Poh asked the Minister for Manpower whether the Government can consider using the revenues generated from the increase and adjustment in foreign worker levy rates for S Pass and Work Permit holders as set out in Budget 2022 to subsidise the training of lower-wage work permit workers, particularly in workplace safety and health to enhance safety and improve productivity.

Dr Tan See Leng: The Government does not earmark revenue for specific uses. Instead, the revenue collected will be considered as a whole and allocated to meritorious projects based on the Government’s needs.

The Government already uses part of its overall revenue to support firms undertaking workforce and enterprise transformation efforts, which can include the training of lower-wage Work Permit (WP) holders. For example, the SkillsFuture Enterprise Credit provides financial support to firms sending their employees for eligible training courses, whether these employees are local or foreign. Eligible courses include those aligned to the Workplace Safety and Health Skills Framework.

In addition, we also incentivise employers to upskill existing WP holders or hire higher-skilled WP holders by subjecting them to lower levy rates.