Levy & quota: why they affect your job

Worker Resources · General guide, not legal advice · Reviewed July 2026

If your employer has ever said "I can't hire more workers because of quota" or "the levy is expensive" — this guide explains what that actually means, and why it is never something you should have to pay for.

What is the foreign worker levy?

The levy is a monthly fee that MOM (the Ministry of Manpower) charges your employer — not you — for every Work Permit or S Pass holder they employ, including you. MOM describes the levy as a pricing mechanism to regulate the number of foreign workers in Singapore. In other words, it is a tool the government uses to manage the size of the foreign workforce and to encourage employers to invest in local hiring and skills.

How much your employer pays each month generally depends on two things:

• Your skill classification — workers recognised as higher-skilled (for example, through relevant qualifications, certifications or experience) usually cost the employer a lower levy than basic-skilled workers.
• How many foreign workers the company already employs, compared with its quota (see below) — the levy is charged in tiers, and generally rises the closer the company is to its quota limit.

Levy rates change from time to time and differ by sector (construction, manufacturing, marine shipyard, process and services). Because exact dollar amounts can change, always check the current rates on MOM's official levy page rather than relying on this guide, or any other website, for the exact figure.

The levy is your employer's cost — never yours

This is the single most important point: the levy is your employer's legal obligation, and it must never be deducted from your salary. MOM's rules on allowable salary deductions specifically list "levy payment" as a cost that an employer is not allowed to deduct from a worker's pay as a condition of employing you.

Other costs your employer also cannot pass on to you the same way include work pass renewal fees, security bond costs, medical insurance premiums, repatriation costs and compulsory training fees.

If you ever see "levy" written as a deduction on your payslip, or your employer asks you to hand over cash to "help pay the levy," this is not allowed. It is a salary problem you can raise with MOM — see the hotlines below and our guide to filing a salary claim.

What is the quota (Dependency Ratio Ceiling)?

Separately from the levy, MOM also limits how many foreign workers a company can hire compared with its local (Singapore Citizen/Permanent Resident) employees. This limit is called the Dependency Ratio Ceiling (DRC), usually just called the "quota."

The DRC is set as a percentage of the total workforce and differs by sector — for example, MOM sets the DRC for the services sector at 35%, while manufacturing companies can employ foreign workers in tiers up to 60% of total workforce. Within the overall quota there are also separate, usually smaller, sub-limits for S Pass holders. Construction, marine shipyard and process sectors each have their own specific rules.

In practice, this means a company can only hold a certain number of Work Permit and S Pass holders at any time, based on how many qualifying local employees it has (counted through CPF contribution records). If a company wants to hire more foreign workers, it usually needs more qualifying local staff first.

Why this affects whether you can be hired, transferred or renewed

Because of the quota, whether a company can offer you a Work Permit — or renew the one you already have — does not depend only on your performance. It also depends on:

• How many other foreign workers the company already employs.
• How many qualifying local employees the company has.
• Whether the company is up to date on its levy payments — MOM can restrict a company's ability to apply for or renew work passes if levy is unpaid.

If a company goes over its quota, MOM's rules state that any new Work Permit or S Pass applications and renewals may be rejected, and the company must cancel enough excess work passes to come back within its quota. If it does not, MOM can revoke the excess passes and stop the company from hiring new foreign workers for six months.

This is why you may sometimes hear that a company "has no quota" to renew you, or to take you on transfer from another employer — it is a real, government-imposed limit, not just an excuse. If you are told this, you can ask your prospective or current employer to explain, and you can independently check your own pass status (see "Related guides" below).

What this means for you, in practice

• The levy is never your bill. You should never pay it, have it deducted from your pay, or be asked to "contribute" to it in cash.
• Quota problems are a business-planning issue for your employer, not a reflection of your work performance — but they are a genuine reason a transfer or renewal can be delayed or refused.
• If you are considering a transfer, ask early whether the new employer has quota available in its sector — this affects timing more than almost anything else.
• If money is being deducted from your pay for "levy," "quota," or another unclear reason, treat it as a salary problem and get help (see hotlines below).

Common questions

Do I ever have to pay the levy myself?

No. The levy is charged to your employer by MOM. It is not allowed for your employer to deduct it from your salary or ask you to pay it in any other way.

Can my employer refuse to renew me because of quota?

Yes, this is possible if the company has no quota left in its sector, or if it has unpaid levy. It is a real constraint under MOM's rules, separate from your individual work performance.

Does a higher-skilled classification help me?

It can. Employers generally pay a lower levy for workers recognised as higher-skilled, which can make it more attractive for a company to hire, renew or transfer you within its quota.

Where can I check the current levy rates and quota rules?

Always check MOM's official foreign worker levy and quota pages, since rates and rules are reviewed and can change — see the official links below.