Hiring is a perennial challenge that both big and small companies face. In general, the Singapore government’s labour policy is for Singaporeans to have first dibs on the jobs available in the market, and then when not enough Singapore workers with the requisite skills are available or willing to take up the jobs, to allow companies access to a global talent pool through hiring foreign workers.
As such, there are very specific rules and regulations governing the hiring of foreign workers. Here’s an overview of the three broad types of passes – Work Permit, S Pass and Employment Pass – that employers and hiring managers could consider applying for.
Work Permit
A Work Permit allows semi-skilled foreign workers from a pre-approved list of countries, such as Malaysia, PRC (China), Non-Traditional Source (NTS) and NAS (North Asian Source), to work in certain labour-intensive sectors, namely construction, marine shipyard, manufacturing, process and service sectors. Individual sectors have specific criteria for granting of work permits.
There are quotas for each industry, known as the Dependency Ratio Ceiling (DRC). For example, the DRC for the services sector was 38% before 2021, but was reduced to 35% on 1 January 2021. Employers also need to pay a monthly levy for each worker and provide mandatory medical insurance.
From 1 January 2024, the DRC for businesses in the Construction and Process industries will be reduced from 1:7 (87.5%) to 1:5 (83.3%). The existing Man-Year Entitlement framework will be phased out and the levy structure for Work Permit holders will be revised. This is to support the industry transformation and incentivise firms to hire higher-skilled foreign workers.
Foreign employees must also come from MOM’s approved source countries, which vary by sector. Currently, for Services and Manufacturing sectors, these are restricted to the traditional source countries (i.e. Malaysia, People’s Republic of China (PRC) and North Asian sources (NAS): Hong Kong (HKSAR passport), Macau, South Korea, Taiwan). From 1 September 2023, this will be expanded to allow businesses in Services and Manufacturing sectors to hire Work Permit holders from NTS countries for a restricted set of occupations in the NTS Occupation List, such as Cooks in Indian Restaurants, Housekeeping workers and porters in Licenced Hotels, and others.
From 1 July 2025, the list of approved countries within the NTS region will include Bhutan, Cambodia and Laos, in addition to the current approved countries, India, Sri Lanka, Thailand, Bangladesh, Myanmar, Philippines.
When granted, Work Permits are valid for up to 2 years, which is renewable, though there are maximum periods of employment as well as age limits. There is no minimum qualifying salary needed, though Work Permit holders are not able to apply for passes for their family members.
From 1 July 2025, the maximum period of employment will be removed for all nationalities. Furthermore, work permit holders can work up to the retirement age of 63, but must be below 61 years-old when applying for their Work Permit.
To apply for a Work Permit, an employer or appointed employment agent can apply for the permit from the Ministry of Manpower.
Read Also: Complete Guide To Foreign Worker Quota In Singapore: Eligibility And How To Calculate
S Pass
The S Pass allows mid-level skilled staff of all nationalities with relevant qualifications and work experience to work in Singapore. Prospective S Pass holders will need to have a degree or diploma, or specialised technical certificates, have multiple years of experience, and be offered a job that pays at least $3,000 a month. Jobs in the financial sector must have a minimum qualifying salary of $3,500.
The minimum qualifying salary has periodically been raised over the years:
- 1 January 2020: From $2,300 to $2,400
- 1 October 2020: to $2,500
- 1 September 2022: to $3,000 ($3,500 for financial sector)
- 1 September 2023: to $3,150 ($3,650 for financial sector)
- 1 September 2025: to $3,300 ($3,800 for financial sector)
- 1 September 2026: to be finalised
Along with this, the minimum qualifying salaries also increase progressively with age, starting from age 23, up to $4,650 at age 45 and above. There is a similar progressive increase in minimum qualifying salary based on age for those working in the finance sector.
Read Also: 4 Types Of Companies Most Affected By The Latest Changes To Employment Pass & S Pass Rules
There is also a monthly levy of either $550 or $650 that employers need to pay, depending on how many foreign nationals are working at the company and whether your business is in the service sector or other sectors.
Companies are also limited by a quota that caps the number of S Pass holders at 10% of the company’s total workforce in the services sector or 15% in all other sectors (construction, marine shipyard, and process).
Once employers successfully apply for an S Pass, it is valid for up to 2 years and is renewable. S Pass holders are able to apply for passes for their family members.
Employment Pass (EP)
Employment Passes (EPs) are for foreign professionals of all nationalities who work in managerial, executive or specialised roles and earn a minimum fixed monthly salary of $5,600 from 2025, with qualifying salaries for older and more experienced candidates being correspondingly higher. In addition, the qualifying salary for the Financial Services sector is $6,200 from 2025.
For EP renewal applications, the new qualifying salary will only take effect on 1 Jan 2026. They will still be able to renew their EP at the older qualifying salary of $5,000 or $5,000 for those working in the financial sector.
The qualifying salary also rises progressively with age for those on EPs – starting at $5,600 (and $6,200 for those in the finance sector) for those aged 23, and up to $10,700 (and $11,800 for those in the finance sector) for those aged 45 and above.
Employment Pass holders must also possess qualifications like a good university degree, professional qualifications or specialist skills. There are higher minimum salary requirements for more experienced applicants.
To ensure the quality of EP holders, MOM will be introducing a new points-based Complementarity Assessment Framework (COMPASS) for EP applications. From 1 September 2023, applications must meet both the EP qualifying salary and earn sufficient points under COMPASS to qualify for an EP.
Once granted, Employment Passes are valid for 2 years, and can subsequently be renewed for 3 years at a time. There are no quotas or levies for Employment Pass employees, employers can also choose whether to provide medical insurance for employees on EP.
Employers can use the Self-Assessment Tool to check a candidate’s eligibility before applying. If the tool indicates that you will not qualify, you shouldn’t apply, since your application will be rejected.
Read Also: What You Need To Know About EP Holders Who Are Intra-Corporate Transferees (ICT)
Further Steps To Enhance Fair Consideration Framework
For Employment Pass positions, employers are required to advertise the job opening on the MyCareersFuture (formerly JobsBank) for at least 14 days. This requirement to advertise on MyCareersFuture was be extended to S Pass applications since 1 October 2020.
Furthermore, the minimum duration for advertising the position before making a work pass application will be extended to 28 days and apply to both EP and S Pass positions from 1 October.
For more details and requirements, you can refer to the Fair Consideration Framework.
Work Permit, S Pass Or Employment Pass: Which Should You Apply For?
Here is an overview of the various passes available to employers:
| Work Permit | S Pass | Employment Pass (EP) | |
| Who is it for | Workers from approved source regions, working in construction, manufacturing, marine shipyard, process or services sectors | Mid-skilled technical staff across all nationalities | Foreign PMEs with a job offer in Singapore, of all nationalities |
| Who applies for it | An employer or appointed employment agent. | ||
| Minimum Qualifying Salary | No minimum | Fixed monthly salary of $3,300 (or $3,800 for finance sector) – Increases with age, from 23, up to $4,650 for those aged 45 and above | Fixed monthly salary of $5,600 (or $6,200 for finance sector) – Increases with age, from 23, up to $10,700 for those aged 45 and above |
| Validity of Pass/Permit | First-time: 2 years Renewals: can be renewed, based on maximum employment period and age limits | First-time candidates: up to 2 years Renewals: up to 3 years | First-time candidates: up to 2 years Renewals: up to 3 years |
| Passes for Family | Not available | Available for eligible Pass Holders, to bring in certain family members on a Dependant’s Pass | Available for eligible Pass Holders, to bring in certain family members on a Dependant’s Pass |
| Quota and Levy | Quota: Based on Dependency Ratio Ceiling (DRC) of foreign workers to total company workforce Construction:83.3% Process: 83.3% Marine Shipyard:77.8% Manufacturing:60% Services: 35% – Levy: $300 to $800 Based on sector, worker’s qualification, and number of Work Permit holders hired | Quota: Service sector:10% of workforce Construction, Manufacturing, Marine Shipyard and Process: 15% Also subject to DRC – Levy: Services: $550 Construction, Manufacturing, Marine Shipyard and Process: $550 to $650 | No foreign worker quota or levy |
| Medical Insurance | Employers must provide medical insurance of at least $60,000 | Employers must provide medical insurance of at least $60,000 | Optional |
With 1.4 million foreign workers working in Singapore (excluding foreign domestic workers), they play an integral role in our economy and workforce. They are our colleagues, clients, vendors, bosses, or even employers.
Read Also: What Exactly Is The Singaporean Core – And Why This Matters For Locals And Foreign Workers
Having an appreciation and understanding of employment criteria can help us have a more informed view when discussing labour policies, even if we’re not hiring managers.
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