Same calc, minus the FW levy rate increases.

cherry6 wrote:

Singapore government plans $5.26B tax bonanza from new foreign worker levy rates.
...
Total foreign worker employment levies collected (new levy rates) = $1,651,680,000 (WP-cons) + $511,560,000 (WP FDW) + $2,587,620,000 (WP- svc+mfc) + $508,380,000 (S-pass)= $5,259,240,000.

All values and calculations excerpted and approximated from:
- 'Foreign worker levies to increase, says MOM' [CNA, 21Feb2011].
- 'Measures to improve welfare of Foreign Domestic Workers': "Presently, there are about 196,000 foreign domestic workers (FDW) in Singapore." [93.8live, 12Mar2010]

Pls tell me if my calculations are in any significant way wrong.
- - - - - -
Facts derived from: 'Foreign worker levies to increase, says MOM' [CNA, 21Feb2011]:

- 1.1 million foreigners employed in Singapore as at end-2010, of these, 871,000 are work permit holders.

- 248,000 work permit (WP) holders are in the construction industry: "By July 2013, the levies for this sector will range from S$300 to S$600, depending on the number of skilled and unskilled workers."-
- suppose the current average levy per worker is in the middle of the $160 - 310 range: i.e.= $235/ mth; the total current annual gov revenue from 248,000 construction industry WP holders is 248k X $235 X 12mths = $699,360,000.

According to 'Measures to improve welfare of Foreign Domestic Workers': "Presently, there are about 196,000 foreign domestic workers (FDW) in Singapore." [93.8live, 12Mar2010]

The range of levy for FDW is between $170 - 265, for convenience, the average of $217.5/mth shall be used. This remains unchanged despite the recent levy revisions.

The total levy revenue from 196k FDW-WP annually is= 196k X 217.5 X 12mths = $511,560,000.


The current Service (svc) WP levy is estimated at the average of S$170 to S$450: i.e.= $310.

The current Manufacturing (mfc) WP is estimated at the average of S$170 to S$450: i.e.= $310.

As the current average levy for svc and mfc WP holder is identical, there is no need to distinguish between number of WP holders in either sector.
The annual WP levy derived from the employment of 871k - 248k - 196k= 427k WP holders in svc and mfc is thus= 427k X $310 X 12mths = $1,588,440,000.

Of the 1.1million foreign workers in SG, non WP holders number: 1.1m - 871k = 229k.

The average current S-pass levy is [($110 + 150) / 2] = $130.

Assuming half of the non-WP holders are S-pass carriers and the other half (114.5k) employment pass holders;

I understand that employment pass holders (the highest rank) pay peanuts/ basically no levies [MOM/ link] an so they shall be exclude from these levy calculations.

$Levy yield from the employment of 114.5k S-pass holders= 114.5k X $130k X 12mths = $178,620,000.


Total foreign worker employment levies collected at current rates (YA2011)= $699,360,000 (WP-cons) + $511,560,000 (WP FDW) + $1,588,440,000 (WP- svc+mfc) + $178,620,000 (S-pass)= $2,977,980,000.

The new levy collections, at $5,259,240,000 is a 76.6% increase over the current $2,977,980,000 in annual WP/S-pass levy collections, an increase of $2,281,260,000 in nominal terms.

__________________
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At/ related:

22Feb2011: Singapore government- the new slave trader on the block.