Work Permit Levy 2028: The New Two-Tier Framework for Manufacturing and Services

Short answer: The Work Permit levy 2028 changes cut Manufacturing and Services tiers from three to two by merging Tier 1 and Tier 2, and raise basic-skilled (R2) levies in Marine Shipyard and Process. Nothing changes today. Model your 2028 bill now and plan skills upgrades during 2027.

This article is general information only and is not legal, tax or immigration advice. For matters needing legal advice, we work with a panel of experienced Singapore law firms.

What is changing in the Work Permit levy from 2028?

MOM will reduce the number of levy tiers in Manufacturing and Services from three to two, and raise the basic-skilled levy in Marine Shipyard and Process. MOM announced both changes in its Committee of Supply 2026 factsheet and said they will be implemented from 2028 to give businesses time to adjust.

The tiers in these two sectors are based on how much a firm relies on Work Permit holders as a share of its total workforce. MOM’s manufacturing page explains that the levy rates are tiered so that firms hiring close to the maximum quota pay a higher levy. The change removes the lowest step: from 2028, the current Tier 1 and Tier 2 are merged into one tier, and the top tier stays as it is.

The levy that applies today has not changed. The current rates remain in force until MOM implements the new framework, so the 2028 figures below should be used for planning only. See our foreign worker levy guide for 2026 for the rates you pay now.

What are the Work Permit levy 2028 rates for Manufacturing and Services?

The merged tier is priced at the current Tier 2 rate in Services and for basic-skilled workers in Manufacturing. For higher-skilled workers in Manufacturing, it falls between the old Tier 1 and Tier 2 rates. The table sets the current and 2028 monthly rates side by side, taken from Annex C of the MOM factsheet.

Sector and tier (share of total workforce)	Current R1	Current R2	2028 R1	2028 R2
Services Tier 1 (up to 10%)	S$300	S$450	S$400	S$600
Services Tier 2 (above 10% to 25%)	S$400	S$600
Services Tier 3 (above 25% to 35%)	S$600	S$800	S$600	S$800
Manufacturing Tier 1 (up to 25%)	S$250	S$370	S$300	S$470
Manufacturing Tier 2 (above 25% to 50%)	S$350	S$470
Manufacturing Tier 3 (above 50% to 60%)	S$550	S$650	S$550	S$650

R1 means higher-skilled and R2 means basic-skilled. The rows for the merged tier are shown once because MOM publishes a single new rate for the combined tier. The dependency ratio ceilings themselves, 35% for Services and 60% for Manufacturing, are not changed by this announcement.

Who pays more and who pays less?

Basic-skilled workers currently billed at Tier 1 will cost more, and higher-skilled workers currently billed at Tier 2 in Manufacturing will cost less. Workers already billed at the Tier 2 level for R2 see no change in either sector.

Worker billed today at	Monthly change from 2028
Services R2, Tier 1	Up S$150 (S$450 to S$600)
Services R1, Tier 1	Up S$100 (S$300 to S$400)
Services R1 or R2, Tier 2	No change
Manufacturing R2, Tier 1	Up S$100 (S$370 to S$470)
Manufacturing R1, Tier 1	Up S$50 (S$250 to S$300)
Manufacturing R2, Tier 2	No change
Manufacturing R1, Tier 2	Down S$50 (S$350 to S$300)

How much will a 20-worker or 60-worker firm pay?

The extra cost depends on how many of your workers are billed at each tier today. MOM’s guidelines on the calculation of quota and levy bills set out how each worker is assigned to a tier, so the examples below assume the split shown and are illustrations, not a bill.

Illustrative firm	Monthly levy today	Monthly levy from 2028	Change per year
Services, 10 R2 workers: 6 at Tier 1 and 4 at Tier 2	S$5,100 (6 x S$450 + 4 x S$600)	S$6,000 (10 x S$600)	Up S$10,800
Manufacturing, 20 R2 workers: 12 at Tier 1 and 8 at Tier 2	S$8,200 (12 x S$370 + 8 x S$470)	S$9,400 (20 x S$470)	Up S$14,400
Manufacturing, 60 R2 workers: 30 at Tier 1 and 30 at Tier 2	S$25,200 (30 x S$370 + 30 x S$470)	S$28,200 (60 x S$470)	Up S$36,000
Manufacturing, 10 R1 workers: 5 at Tier 1 and 5 at Tier 2	S$3,000 (5 x S$250 + 5 x S$350)	S$3,000 (10 x S$300)	No change

The pattern is clear. A firm with many basic-skilled workers at the lowest tier faces the largest rise, while a firm with a balanced R1 mix is roughly unaffected. Your own figure should come from the levy bill in your myMOM account and the current tier of each worker.

What about Marine Shipyard and Process employers?

Basic-skilled levies in these two sectors rise from 2028, and higher-skilled rates are unchanged. MOM says the aim is to nudge businesses to reduce reliance on Work Permit holders and hire higher-skilled workers, and describes the Marine Shipyard and Process increase as a first step towards aligning these sectors with Construction in the longer term.

Sector and source	R1 (unchanged)	R2 today	R2 from 2028
Marine Shipyard	S$350	S$500	S$600
Process: Malaysia, North Asian sources, PRC	S$200	S$450	S$600
Process: non-traditional sources	S$300	S$650	S$800

What should employers do in 2027?

Use 2027 to move eligible workers from R2 to R1, and to review whether a Work Permit, an S Pass or a local hire is the cheapest route for each role. The levy rise only bites on R2 workers at the bottom tier, so the saving from upgrading is direct.

1. Pull your current levy bill and list each Work Permit holder by skill level and tier.
2. Check who can qualify for the higher-skilled levy. MOM’s manufacturing page lists routes such as SET Level 1 or the National ITE Certificate, the WSQ Composite Assessment for Generic Manufacturing, a fixed monthly salary of at least S$1,600, or at least 4 years in Singapore as a Work Permit holder. Qualifying routes differ by sector, so confirm them for your own sector page.
3. Model 2028 using the tables above, and compare the cost of an S Pass holder. From 1 January 2027, the S Pass minimum qualifying salary for new applications rises from S$3,300 to S$3,600 (S$4,000 for financial services), and the S Pass levy is S$650. See our salary by age tables.
4. Check whether your roles are on the Non-Traditional Source Occupation List. MOM is adding eight occupations in Food Services, Social Services and Air Transportation from September 2026. Employers hiring on the list remain subject to an 8% sub-dependency ratio ceiling and a fixed monthly salary of at least S$2,000.
5. Keep your local headcount accurate. MOM calculates quota from CPF declarations, and late or missed declarations can push workers into higher tiers.

Sector guides for manufacturing and food and beverage hiring show how quota and levy fit together today, and our article on lowering your foreign worker levy legally covers the levers you control. For payroll and cash flow planning, the free tools from Raffles Corporate Services may help.

Frequently asked questions

Is the Work Permit levy changing now?

No. MOM says the levy changes will be implemented from 2028, and that it will release more details on the implementation timeline in due course. Current rates apply until then.

Which sectors are affected?

The two-tier change applies to Manufacturing and Services. Marine Shipyard and Process employers face higher R2 rates. MOM’s factsheet does not change the Construction levy in this announcement.

Does the S Pass levy change in 2028?

The factsheet does not announce an S Pass levy change. MOM’s S Pass page states that the levy has been harmonised at S$650 across all sectors and tiers since 1 September 2025, and that levy rates are regularly reviewed.

Are the dependency ratio ceilings changing?

Not in this announcement. MOM’s pages currently show 35% for Services and 60% for Manufacturing, and the 2028 change affects the tiers within those ceilings.

Where can I check my own levy tier?

Log in to WP Online on the myMOM Portal to see your company’s workforce, quota and levy position, and refer to MOM’s guidelines on the calculation of quota and levy bills.

Official sources: MOM COS 2026 foreign workforce factsheet, MOM manufacturing sector requirements and MOM S Pass quota and levy.

Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Little Big Employment Agency (EA Licence 19C9790) works with a panel of corporate and employment law firms; this article is general information, not legal advice.

Last reviewed: 25 October 2026. The Editorial Team, Little Big Employment Agency.