Changes to Statutory Act

1. Changes to CPF Contributions

Employers’ CPF contribution rate will be raised by 1%.  The increase will be done gradually in two steps to moderate the impact on employers. The first 0.5% increase will be implemented on 01 September 2010 and the remaining 0.5% will be effected on 1 March 2011.

WHO IS AFFECTED BY THE CONTRIBUTION RATE CHANGES?

All employees will benefit from the new CPF contribution rate changes. Please refer to Annex A for a detailed listing of the new contribution rates.

For low wage workers (LWWs) above 35 years old and earning between $50 and $1,500, the employer CPF contribution rate will continue to be phased in. Please refer to Annex B for the new LWW contribution rates.

Downloads

Click here to download Annex A, Annex B

2. Service Literacy Test to Up Service Standards in Retail, Hotel and F&B Industries

Additional criterion from July 2010 for work permit holders to obtain skilled levy status.

The Ministry of Manpower (MOM) has appointed the Singapore Workforce Development Agency (WDA) to develop and administer an English language proficiency test for foreign workers in the Hotel, Retail and Food and Beverage (F&B) industries. With the new criterion, MOM aims to enhance service standards, raise productivity levels and the quality of the foreign workforce in Singapore.

From July 2010, work permit holders in the three industries will have to pass the Service Literacy Test (SLT) in order to qualify for skilled levy status. The new criterion is in addition to all other skilled levy requirements, such as possessing the requisite academic qualifications or passing certain skill/trade tests. Employers who hire work permit holders who pass the test and meet all other requirements will be placed on skilled status and subjected to the skilled levy.

Service Literacy Test

1. The test will apply to new non-Malaysian work permit holders, as well as existing non-Malaysian work permit holders who have received their renewal notice from MOM.
2. The test was developed based on general work settings in the three industries. Work permit holders will have to pass both components of the test – Speaking and Listening. In the Speaking test, work permit holders will be asked questions through a pre-recorded video clip and respond by speaking into an attached microphone.  A computer system captures the responses for scoring later. In the Listening test, work permit holders will listen to a conversation, instruction or comment, and subsequently be asked to select a suitable response from a list of multiple-choice answers. 
3. While the additional criterion will be implemented only in July this year, employers will be allowed to register for the test from April 2010.  This is to ensure that employers will have sufficient time to consider sending their work permit holders for English language courses before they sit for the SLT.