Work Permit levy hikes in 2028 could drive SMEs to automate, upskill workers: industry players
Among SMEs, these levy increases are likely to have a greater impact than other manpower-related changes unveiled in the recent Budget
[SINGAPORE] The upcoming increases in Work Permit levies could prompt Singapore’s small and medium-sized enterprises (SMEs) to invest more in automation and artificial intelligence (AI), industry players told The Business Times.
The changes may also encourage SMEs to send foreign workers for training so they can qualify for higher-skilled tiers that attract lower levies, they added.
In Budget 2026, the government announced that foreign worker levy rates for certain Work Permit holders would be raised, and the levy framework simplified in some sectors, with the changes set to take effect in 2028.
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