New Singapore Work Permit Rules – Everything You Need to Know to Apply

The Singapore Work Permit Rules are undergoing their most significant transformation in decades, with new measures that extend how long foreign workers can stay, expand eligible source countries, and tighten salary benchmarks for mid-level roles. The Ministry of Manpower (MOM) says the reforms, to be phased in between June and September 2025, are designed to support Singapore’s long-term economic resilience while safeguarding local jobs.

Singapore Work Permit Rules

A Major Shift for Singapore’s Foreign Workforce

The Ministry of Manpower announced on 10 October that Work Permit holders will no longer face maximum employment duration limits. This change removes a longstanding cap of 14 to 26 years, depending on sector and nationality. The maximum employment age will also rise to 63 years, up from 60, marking a significant recalibration of labour policy.

“Singapore’s labour market is evolving. These changes give employers more stability while protecting opportunities for locals,” Manpower Minister Tan See Leng said at a press conference. “We are modernising the work pass framework to ensure it supports a future-ready economy.”

The announcement comes amid persistent labour shortages across key industries, compounded by an ageing population and intensified competition for talent in Southeast Asia.

Historical Context: How the Work Permit Evolved

Singapore introduced its Work Permit system in the 1980s to regulate low-wage foreign labour in industries such as construction and shipbuilding. Over the years, the system has been tightened, with quotas and levies imposed to protect local employment.

For decades, Work Permit holders faced strict limits on both age and employment duration. “The policy was designed for foreign workers to supplement, not substitute, the local labour force,” explained Dr. Irene Ng, a labour policy researcher at the National University of Singapore.

However, as Singapore’s economy matured and local workers shifted away from labour-intensive jobs, foreign workers became indispensable in sustaining industries that locals were reluctant to join. The 2025 reforms are the most liberal in years, reversing the trend of increasingly restrictive measures.

Expanded Source Countries and Occupations

Beginning 1 June 2025, employers can hire Work Permit holders from Bhutan, Cambodia, and Laos, adding to the existing list of source countries. This expansion reflects Singapore’s strategy to diversify its manpower sources amid regional competition.

From 1 September 2025, the Non-Traditional Source (NTS) Occupation List will also expand to include heavy vehicle drivers, more manufacturing roles, and cooks from a wider range of cuisines.

“Migrant workers are critical to Singapore’s economy,” said Dr. Debbie Soon, an economist with the Singapore Institute of International Affairs. “By widening the labour pool and allowing workers to stay longer, the government is addressing both supply and stability in the workforce.”

Economic Context: Labour Shortages Driving Policy Shifts

As of 2024, Singapore has approximately 1.4 million foreign workers, including 745,000 Work Permit holders, according to MOM statistics. These workers dominate sectors such as construction, marine, and manufacturing, which collectively contribute more than 20 percent of GDP.

Labour shortages have intensified in the aftermath of the COVID-19 pandemic, which saw border closures and reduced inflows of migrant labour. Although the situation has stabilised, industries still face structural gaps, particularly in essential services and heavy industries.

“The economy has changed, and so must our manpower policies,” Minister Tan said. “Longer stays mean less churn, more experienced workers, and lower retraining costs for employers.”

New Salary Thresholds for S Pass Holders

The government will raise the minimum qualifying salary for S Pass holders from S$3,150 to S$3,300 in non-financial sectors, and to S$3,800 in financial services. The new thresholds will apply from September 2025 for new applications and September 2026 for renewals.

This is part of a broader strategy to position the S Pass for mid-skilled talent, ensuring foreign hires do not undercut local wages. MOM also reaffirmed that the levy and quota system for S Passes will remain in place.

COMPASS Framework: A More Structured Approach

The Complementarity Assessment Framework (COMPASS), first introduced in 2023, will become central in evaluating Employment Pass (EP) applications in 2025. It awards points based on salary, qualifications, diversity, and contributions to local employment.

“The COMPASS framework ensures foreign professionals complement local talent,” said Dr. Indranee Rajah, Second Minister for Manpower. “It’s about raising the quality of foreign manpower, not just quantity.”

Under the framework, employers with a strong record of fair hiring and skills transfer will have an easier path to securing EP approvals.

Human Angle: How the Rules Affect Real Workers

For Mohammad Rahman, a 52-year-old Bangladeshi construction worker who has worked in Singapore for 20 years, the removal of employment duration caps is life-changing.

“Before, I worried every few years about going home,” he said in an interview at a dormitory in Tuas. “Now, if my employer wants, I can stay longer. I can keep supporting my family.”

Employers share similar sentiments. “We’ve invested years training experienced workers,” said Elaine Chia, HR director at a mid-sized construction firm. “With these new rules, we can retain skilled hands longer, which improves productivity.”

Global Comparison: How Singapore Stands Out

Unlike countries such as Hong Kong or the United Arab Emirates, where foreign workers often face shorter contract durations and fewer pathways to long-term stability, Singapore’s new framework offers more security and predictability.

“Singapore is sending a clear signal,” said Prof. Michael Clemens, a labour migration expert at George Mason University. “It wants to be a stable, attractive hub for foreign talent — not just at the top end, but also for essential workers.”

Implementation Timeline and Transition Measures

The government has outlined a phased approach:

• June 2025: Expansion of source countries.
• July 2025: Removal of employment duration limits and increase in employment age.
• September 2025: NTS occupation list expansion and new S Pass salary thresholds for new applications.
• September 2026: New thresholds for S Pass renewals.

Employers are advised to update workforce planning, salary structures, and compliance procedures. MOM will provide support through advisory clinics and online resources.

Concerns and Criticism

While businesses have largely welcomed the changes, some unions and civil society groups have expressed concerns about potential over-reliance on foreign workers.

“Extending work durations is positive for stability,” said NTUC in a statement. “But safeguards must ensure that Singaporeans are not displaced, especially in mid-skilled jobs.”

Labour rights groups have also called for stronger protections to ensure that longer stays do not translate into poorer living conditions. MOM responded by reaffirming its commitment to “strict housing and welfare standards” and enhanced inspections.

Looking Ahead: A Labour Market in Transition

Economists say the reforms could reshape Singapore’s labour market over the next decade. With an ageing local population and continued demand for foreign labour, longer employment durations may create a more stable and experienced workforce.

“The changes will improve retention, reduce administrative costs, and support business continuity,” said Dr. Linda Lim, an economist at the University of Michigan. “But Singapore must also continue investing in productivity and upskilling local workers to stay competitive.”

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