q Skilled Worker Levy for Foreign Workers

The construction skilled worker levy will be raised from the current $30 to $50. The skilled worker levy rate in all other sectors will also be increased to $50. These changes will come into operation on 1 July 2004 .

q Employment Pass

A new category of work pass will be introduced, with the ‘S’ pass replacing the current ‘Q2’ category.

The main criteria for an ‘S’ pass are as follows:

· a minimum salary of $1,800; and

· an acceptable tertiary qualification

The ‘S’ pass will be subject to a quota, to begin with 5% and a levy, set initially at $50.

The scheme, which will be implemented from 1 July 2004 , will help employers faced with a short supply of middle-tier skilled workers in the healthcare, information technology, aerospace and pharmaceutical industries.