Foreign Levy Changes on July2014
Since the announcement of increase of worker levies back to 2013, the construction industry is expecting to further increase the levies in coming July 2014.
The range of increase is range from $100 to $200 which is applicable to construction section and subjected to further increase next year, July 2015.
With the tighter labour market and the full force of levy measures ahead, the labour cost in construction sector is expected to increase 20 per cent in year ahead. The monthly levies for the lower skill foreign worker will be hit $950 record high, and add on rising in labour cost. Those firm hire more low-skilled construction workers will face more increase in labour cost and are highly advise opt to increase productivity and/ or replace with automation process if possible.
Singapore government is encourage the local SMEs ( i.e. Small-medium-Enterprise or Small-Micro- Enterprise) using the enhanced Productivity and Innovation Credit (PIC) scheme to raise the industry productivity with fund support.
Despite the challenge faced, many SMEs is also acknowledged that the familiarity of government schemes are not clear in most cases and it has been slow down the transition progress. The more assistance and workshop organized to assist SMEs will be most welcome and helpful.
Contribute by QSoutsouce.com