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Foreign Worker Levy (FWL) Proration in BrioHR

This article explains about the proration for Foreign Worker Levy (FWL) based on the joined and resigned date of employees. 

Audience & Scope

Audience: HR Admin

Module: Payroll

Country: Singapore

 

We have introduced enhancements to Singapore statutory calculations to improve the accuracy of Foreign Worker Levy (FWL) deductions, particularly for employees who join or leave employment partway through a month. These enhancements ensure FWL is prorated correctly in accordance with regulatory requirements.

1. Foreign Worker Levy (FWL) Proration

The Foreign Worker Levy (FWL), which is typically charged at a standard monthly rate of SGD 650, will now be prorated based on calendar days when an employee joins or resigns during the month.

This means:

  • The payable FWL amount is calculated according to the number of calendar days the employee is employed in that month.

  • Proration applies only for partial months due to join or resignation dates.

2. Comparison with CPF and Self-Help Groups (SHGs)

It is important to note that FWL proration differs from other statutory contributions in Singapore:

  • CPF and Self-Help Groups (SHGs) are prorated based on the PR effective date, not calendar days.

  • The proration logic for CPF and SHGs remains unchanged under this enhancement.

3. Applicability by Employee Type

Statutory contributions vary depending on the employee’s residency and work status:

  • Singapore Citizens and Permanent Residents

    • Contribute to CPF and Self-Help Groups (SHGs)

    • Do not contribute to FWL

  • Foreign Employees (e.g. SPASS and Work Permit holders)

    • Contribute to Foreign Worker Levy (FWL)

    • Do not contribute to CPF or SHGs

 

Common Issues/FAQ

Q: When are SHG contributions applicable to an employee?

A: SHG contributions are applicable once an employee is subject to CPF contributions, including Singapore Citizens and Permanent Residents.

Q: Which Self-Help Groups are covered under SHG contributions?

A: The main SHGs include ECF, CDAC, MBMF, and Cinda, each with contribution rates based on specific eligibility criteria and salary bands.

Q: What happens if an employee becomes a PR in the middle of the month?

A: If the PR effective date falls mid-month, the employee’s salary subject to CPF and SHG contributions must be prorated from the PR effective date to the end of the month.

 

Related Articles

Salary Proration for Singapore Payroll: A Complete Guide

Importance of PR Effective Date & How It Impacts CPF Calculation (SG)

 

Last Updated & Ownership

Last Updated: 29 January 2026

By: Arveena