A simple guide for Singapore CMP Sector Employers before hiring a Work Permit worker
Many employers calculate only the worker’s basic salary.
But in Singapore, the real expense is the Total Manpower Cost — the actual monthly cost of employing a foreign Work Permit worker.
If this is not calculated properly, your project quotation and cash-flow planning can fail.
1️⃣ Foreign Worker Levy (Monthly Government Fee)
This money is NOT paid to the worker.
It is a statutory fee paid to the Ministry of Manpower (MOM) for employing a Work Permit holder.
Levy depends on:
Sector (CMP – Construction, Marine & Process)
Worker’s skill level (Basic / Higher Skilled – SEC(K), etc.)
Company quota (Dependency Ratio Ceiling)
👉 CMP sector normally falls under higher levy tiers compared to services.
Important:
Even if the worker is sick, on leave, idle, or project delayed — the levy must still be paid monthly.
To check official levy rates:
https://www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-worker/foreign-worker-levy
2️⃣ Accommodation / Dormitory Cost
Employers are legally required to provide acceptable accommodation.
Typical costs include:
Bed space rental
Utilities (water & electricity)
Transport to site
Maintenance & cleaning
💰 Typical dorm cost: SGD $450 – $550 per worker/month
Poor accommodation can result in:
MOM penalties
Work permit suspension
Debarment from hiring workers
3️⃣ Medical Insurance (Mandatory)
Every Work Permit holder must be covered by insurance.
Employer must provide:
FWMI (Foreign Worker Medical Insurance)
Primary Care Plan (PCP)
Hospitalization coverage
WICA accident insurance
If a worker is hospitalized without proper insurance, the employer bears the full hospital bill.
4️⃣ Security Bond & MWOC (Often Forgotten)
Many employers miss these mandatory financial commitments:
Security Bond
SGD $5,000 per worker
Usually backed by an insurance/bank guarantee
Requires annual premium payment
MWOC (Migrant Worker Onboarding Centre)
Settling-in programmed
Administrative charges
Transport & processing expenses
5️⃣ Other Hidden Costs
Also consider:
Air tickets (arrival & repatriation)
Medical examinations
Safety courses (CSOC)
PPE equipment
Agency & documentation processing
No-show / early cancellation risks
💡 Example Monthly Cost (CMP Worker)
Item Approx. Monthly Cost
Basic Salary $650 – $900
Levy $300 – $950
Dormitory $450 – $550
Insurance (avg monthly) $20 – $30
Transport/Admin/PPE $100 – $200
👉 Actual employer cost: approx. $1,500 – $2,500 per worker/month
(Not just the salary)
⚠ Why Proper Calculation Matters
Incorrect budgeting may cause:
Project losses
Cash-flow shortages
Salary payment delays
Worker runaways/absconding
MOM penalties & hiring restrictions
Smart employers calculate Total Manpower Cost BEFORE IPA application, not after worker arrival.
✔ Practical Tips for Employers
Before applying for a Work Permit:
Check quota availability
Confirm levy tier
Verify SEC(K) / skill qualification
Arrange dormitory first
Budget insurance & bond
Good planning reduces risk and protects your project profitability.