Calculation of Foreign Worker Quotas
I’m always looking this up so I figured I would stick it here. For those of you who don’t know, in order to hire a foreign worker (from the “approved” list of countries for the service industry), you have to employ enough Singapore citizens / permanent residents to meet the ratio of 1 citizen to 1 foreign worker. (Current as of August 2011)
Here is a very basic example – if you have 50 local employees you can hire 50 foreign employees, making a total workforce of 100 employees.
Total workforce = 100 staff (including locals and foreigners)
That 100 staff is comprised of:
Local staff = 50
Foreign staff = 50
Now, to make it a little more confusing, within the foreigner work force there are different allocations for the type of permit (Work Permit or S Pass) and also what country they are from.
If you have 100 total employees, 10 (out of the 50 foreign workers) can be on work permits from China (10% of total workforce).
If you have 100 total employees, 25 (out of the 50 foreign workers) can be on S Pass (25% of total workforce).
If you have 100 total employees, 50 (out of the 50 foreign workers) can be on work permits from Malaysia, Hong Kong, Macau, South Korea, or Taiwan.
(Side comment – the Filipinos working in restaurants are on S Pass; they are not eligible for Work Permit)
Below information is from the Ministry of Manpower
Computation of quota
- A company/firm’s Central Provident Fund (CPF) account is used by the Controller of Work Passes to determine its local workforce and foreign worker (FW) entitlement. The company/firm should ensure that CPF contributions under this account are made only to persons actively employed by the company/firm.
- The FW entitlement (quota) is based on the size of the total workforce in the company/business. ‘Total workforce’ refers to the sum of the local workforce, S Pass holders and Work Permit holders that are subjected to the sectoral Dependency Ratio. ‘Local workforce’ refers to those full-time employees (Singapore citizens or permanent residents) who have worked for a full month, and are receiving prompt monthly salary/CPF contributions which are similar to the industry norm. Two part-time employees are considered as one local full-time employee. (Current as of August 2011: a full-time employee in the service sector is one that is making 850 SGD a month or more. I can not find information on what pay constitutes a part-time employee, if anyone has this information please let me know!)
For example, a company that employs two full-time local employees and two part-time employees will have a total local workforce of three persons. Employees who receive CPF contributions from multiple employers will not be considered in the calculation of the workforce.
- A company/business’ quota balance is calculated based on the size of its local workforce for the past three months (in the same CPF account). The past three months refer to the latest CPF contribution records, excluding the current and last month.
For example, the quota for August 2011 is computed using the months of April, May and June 2011.