Singapore Eases Work Permit Rules to Attract Skilled Foreign Workers

Singapore is introducing significant changes to its work permit rules, aiming to provide employers with greater flexibility in hiring and retaining foreign workers.

The Ministry of Manpower (MOM) has announced key updates, including expanding eligible labour sources, removing employment duration limits, and adjusting age and salary criteria for work permits and S Pass holders.

New Countries Added to Work Permit Eligibility

Starting June 1, 2024, Singapore will expand its list of approved manpower source countries to address labour shortages. The newly added countries include:

• Bhutan
• Cambodia
• Laos

These nations join the existing sources:

• Bangladesh
• India
• Myanmar
• The Philippines
• Sri Lanka
• Thailand

This expansion aims to provide employers with a broader talent pool, ensuring a steady workforce supply for key sectors.

No More Maximum Employment Duration

Effective July 1, 2024, Singapore will remove the maximum employment duration for work permit holders. Currently, employment periods range from 14 to 26 years based on skill level, sector, and country of origin.

This change aligns work permit rules with those applicable to workers from Malaysia, Hong Kong, Macau, South Korea, and Taiwan, who already enjoy unrestricted employment durations.

Higher Age Limit for Work Permit Holders

Starting from July 1, 2024, the maximum employment age for work permit holders will rise from 60 to 63 years, in line with Singapore’s local retirement age.

Additionally, the age limit for new work permit applicants will increase to 61 from the current 50 for non-Malaysians and 58 for Malaysians. These adjustments aim to help businesses retain experienced workers and address labor shortages in key industries.

Also Read: How to Apply for a Singapore Work Permit: A Step-by-Step Guide

Expanded Occupation List

Starting September 1, 2024, Singapore will expand the range of jobs that can be filled by workers from non-traditional sources in the manufacturing and services sectors. New occupations include cooks, heavy vehicle drivers, and manufacturing operators.

Employers must offer a minimum salary of SGD 2,000 and maintain a workforce dependency ratio below 8% to ensure fair wages and minimize over-reliance on foreign workers.

Higher Salary Requirements for S Pass Holders

To ensure fair wages and attract skilled workers, Singapore is increasing the minimum qualifying salary for S Pass holders from SGD 3,150 to SGD 3,300. This change takes effect on September 1, 2024, for new applications and from September 1, 2026, for renewals.

The salary threshold for financial services sector workers will also rise, reaching SGD 3,800, with progressive increases up to SGD 5,650 for experienced candidates in their mid-40s.

Increased Levy for S Pass Holders

The S Pass Tier 1 levy, which applies to up to 10% of a company’s workforce, will increase from SGD 550 to SGD 650 starting September 1, 2024. This aligns it with the Tier 2 levy, which covers the next 5% of a firm’s workforce.

Impact on Foreign Workers and Employers

These policy changes reflect Singapore’s commitment to balancing economic growth with local workforce development. By easing work permit restrictions, extending employment age limits, and adjusting salary requirements, the government aims to attract skilled foreign workers while ensuring fair opportunities for locals.

Key Takeaways for Foreign Workers

• Increased Job Security: The removal of the maximum employment period provides greater job security for long-term work permit holders.
• Expanded Job Opportunities: The inclusion of new manpower sources and the expansion of eligible occupations create more job opportunities for foreign workers.
• Higher Earning Potential: The increase in the S Pass qualifying salary reflects a commitment to attracting and retaining skilled workers.
• Age-Friendly Policies: Raising the maximum employment age allows experienced workers to contribute longer.
• Focus on Skill and Experience: Singapore continues to prioritize skilled and experienced foreign workers, ensuring a high-quality workforce.

Final Words

Foreign workers and employers should stay informed about these updates and prepare for the upcoming changes in hiring policies. As demand for skilled labor grows, Singapore remains an attractive destination for global talent seeking long-term employment opportunities.