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MOM Introduces Additional Measures to Help Companies Cope With Covid-19
As the Covid-19 situation continues to evolve, the Ministry of Manpower (MOM) has announced further measures to help affected businesses cope during this period.
MOM will provide:
- A three-month extension of the levy payment timeline to small-and-medium size enterprises (SMEs) with immediate effect;
- Levy waiver for up to 90 days with immediate effect for foreign workers on overseas leave; and
- Man-Year Entitlement (MYE)refund for construction firms affected by disruptions arising from COVID-19, with effect from 1 April 2020.
Firms with excess manpower are also urged to prioritise locals for retainment. These firms should also give consent for their existing foreign workers to be transferred to other employers facing manpower shortages.
Three-Month Extension Of Levy Payment Timeline For SMEs
With immediate effect, MOM will provide SMEs with an additional three months to make the levy payment. In total, SMEs are granted up to 5 months to pay for the foreign worker levy from the month it is incurred before revocation action kicks in. This temporary relief measure will apply to levies incurred in the year 2020. An estimated 60,000 firms stand to benefit from this measure.
Employers who utilise the extended payment timeline offered by MOM are encouraged to retain existing workers and should not be employing new foreign workers. MOM will allow renewals, but not new applications of work passes from these firms.
Currently, the foreign worker levy incurred in any month is due for payment by the 14th of the following month. Employers who fail to make payment on the due date will have their new and renewal work pass applications rejected. Two consecutive months of late or non-payment of levies will result in all existing work passes being revoked.
Levy Waiver For Up To 90 Days For Foreign Workers On Overseas Leave
Currently, MOM allows levy waiver for up to 60 days for foreign workers who go on overseas home leave for at least 7 consecutive days. In view of the difficulties and travel restrictions workers may face in returning to Singapore, MOM will extend the levy waiver period to up to 90 days with immediate effect for foreign workers who are currently on overseas leave.
Man-Year Entitlement (MYE) Refund For Construction Firms
MOM has partnered with Singapore Contractors Association Limited (SCAL) and Building and Construction Authority (BCA) on a temporary scheme to refund unutilised MYE due to work disruptions from COVID-19. Firms can use the refunded MYE within 1 year to hire new workers or renew existing ones. From 1 April 2020 onwards, this relief measure will be available for a period of six months. Firms which are affected can apply to BCA for the MYE refund. More details on the application process will be provided by BCA.
As the COVID-19 situation continues to evolve, there may be additional requirements/measures introduced by MOM from time to time. While MOM will publicise these requirements/measures widely, it may not be possible to inform every employer or employee directly about each new set of requirements.
The information in this article was accurate as of 25/03/2020. Employers and employees are strongly advised to check the MOM’s website (http://www.mom.gov.sg/covid-19) for all the latest advisories.
Contact us if you require any advice or support to stay compliant with Singapore payroll or work pass rules.
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