What is Foreign Workers Levy (FWL)?
The Ministry of Manpower charges the employer of an FDW a monthly fee which varies according to the circumstances.
This charge is the Foreign Workers Levy. Currently is $265 (normal rate) or $120 (concession rate).
The amount levied is deducted from the employer's bank account set up through GIRO, so the employer should remember to top up the balance periodically, especially if he or she uses the same bank account to facilitate the payment of other recurrent charges like the monthly car park license, PUB charges, radio/tv license etc.
If the employer neglects to top up the account and the deduction for FWL is unsuccessful, MOM will terminate the FDW's work permit and direct the employer to repatriate her.
Failure to do so will result in loss of the five-thousand dollar security deposit unless the employer successfully appeals against the decision.
Note: Even if the employer has taken out the Security Bond Protector policy she will still have to indemnify the insurance company because this policy only protects the Employer if a breach is caused by the FDW and not if it is attributable to the Employer.