Singapore Updates Work Permit Policies: Longer Employment Duration & Expanded Worker Sources

Removal of Maximum Employment Duration for Work Permit Holders

The Ministry of Manpower (MOM) has announced the removal of the maximum employment duration for work permit holders. Effective July 1, work permit holders will now be allowed to work in Singapore until the age of 63. Additionally, the maximum age for new applicants will be raised to 61.

Expansion of Non-Traditional Source Worker List

To address industry demands, the government will expand the list of non-traditional source (NTS) countries from June 1. Employers will be allowed to hire skilled workers from Bhutan, Cambodia, and Laos.

Moreover, the range of job roles available for foreign workers will be broadened. Starting from September 1, chefs and heavy vehicle drivers will also be eligible for employment under the new guidelines.

Retaining Skilled Workers by Removing Employment Duration Limits

Speaking at the Parliamentary Committee of Supply debates on March 6, Dr. Tan See Leng, Minister for Manpower and Second Minister for Trade and Industry, emphasized that the removal of the work permit employment duration limit aims to retain skilled middle-aged workers and balance the retirement age of both local and foreign employees. “With these changes, employers can retain experienced workers who continue to contribute effectively,” he stated.

Recent Adjustments to Foreign Workforce Policies

Currently, work permit holders are subject to varying employment duration limits based on industry, nationality, and skill levels, ranging from 14 to 26 years. Under the new policy, the maximum employment age will increase from 60 to 63 years, and the maximum age for new applicants will be raised from 50 to 61 years.

Strengthening Work Permit and S Pass Policies

To support business workforce needs, the government will extend the Economic Strategies Workforce Support initiative for an additional three years. Employers with inclusive hiring practices may also be eligible for higher foreign worker quotas.

Under the COMPASS framework, the government assesses companies based on their reliance on foreign workers. This system has led to a 7% reduction in firms heavily dependent on foreign workers from a single nationality and a 15% decrease in firms with high foreign worker dependency overall. Additionally, over 4,000 white-collar jobs have been created for local workers.

For the mid-skilled S Pass category, the government will proceed with the planned increase in minimum qualifying salaries. In 2024, the minimum salary threshold will rise from SGD 3,650 to SGD 3,800 for the financial sector and from SGD 3,150 to SGD 3,300 for other industries. This marks the final phase of the three-step S Pass salary adjustment introduced in 2022.

Furthermore, effective September 1, 2024, the foreign worker levy for all S Pass holders, regardless of skill level, will be standardized at SGD 650.

These adjustments reflect Singapore’s continued commitment to balancing workforce sustainability, business needs, and economic growth while ensuring fair opportunities for both local and foreign workers.

Strengthening Work Permit and S Pass Policies

To support business workforce needs, the government will extend the Economic Strategies Workforce Support initiative for an additional three years. Employers with inclusive hiring practices may also be eligible for higher foreign worker quotas.

Under the COMPASS framework, the government assesses companies based on their reliance on foreign workers. This system has led to a 7% reduction in firms heavily dependent on foreign workers from a single nationality and a 15% decrease in firms with high foreign worker dependency overall. Additionally, over 4,000 white-collar jobs have been created for local workers.

For the mid-skilled S Pass category, the government will proceed with the planned increase in minimum qualifying salaries. In 2024, the minimum salary threshold will rise from SGD 3,650 to SGD 3,800 for the financial sector and from SGD 3,150 to SGD 3,300 for other industries. This marks the final phase of the three-step S Pass salary adjustment introduced in 2022.

Furthermore, effective September 1, 2024, the foreign worker levy for all S Pass holders, regardless of skill level, will be standardized at SGD 650.

These adjustments reflect Singapore’s continued commitment to balancing workforce sustainability, business needs, and economic growth while ensuring fair opportunities for both local and foreign workers.