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SINGAPORE – Key changes to Work Permit and S Pass eligibility.
March 7, 2025
Singapore’s Ministry of Manpower (MOM) has announced major updates to its Work Permit and S Pass frameworks, aiming to enhance workforce stability and ensure that foreign worker policies align with the nation’s economic needs. These changes, set to take effect between July 1 and September 1, 2025, focus on extending employment opportunities for foreign workers, refining S Pass eligibility, and improving access to skilled labor across various sectors.
Key changes to Work Permit regulations.
Removal of maximum employment period for Work Permit holders.
- Effective July 1, 2025, the previous employment duration limits (ranging from 14 to 26 years based on sector, skill level, and country of origin) will be abolished.
- This allows Work Permit holders to remain employed indefinitely, provided they meet eligibility requirements and employer demand.
- Employers can now retain skilled foreign workers longer, reducing turnover and training costs.
Increase in maximum employment age.
- The maximum employment age for Work Permit holders will be raised from 60 to 63 years.
- The age limit for new Work Permit applicants will increase to 61 years (currently 50 for non-Malaysians and 58 for Malaysians).
- This change helps ensure workforce continuity and enhances long-term employment prospects for foreign workers.
Expansion of source countries and eligible occupations.
- Bhutan, Cambodia, and Laos will be added to the list of approved source countries from June 1, 2025.
- The Non-Traditional Sources (NTS) Occupation List will be expanded from September 1, 2025, to include heavy vehicle drivers, various manufacturing roles, and cooks across all cuisines.
- These expansions provide employers with a broader talent pool, easing labor shortages in key industries.
Upcoming changes to S Pass eligibility.
Revised minimum qualifying salaries.
- All sectors (excluding financial services): The minimum qualifying salary will increase from $3,150 to at least $3,300, with higher salary requirements for older applicants.
- Financial services sector: The minimum qualifying salary will increase from $3,650 to at least $3,800, also scaling with age and experience.
- These changes align S Pass salaries with the top one-third of local Associate Professionals and Technicians (APT) salaries.
Increased S Pass levy rates.
- From September 1, 2025, the S Pass Basic/Tier 1 levy will rise from $550 to $650.
- The Tier 2 levy will remain at $650.
- Employers will need to reassess hiring strategies in light of increased costs associated with S Pass employment.
Full details on the new minimum salaries and levy rates can be found here.
Implications for employers and foreign workers.
- Work Permit holders will benefit from greater job security due to the removal of employment duration limits and an increase in the maximum employment age.
- Employers can retain experienced foreign workers for longer, improving productivity and reducing retraining costs.
- S Pass holders and applicants should prepare for stricter salary requirements and ensure that they meet the updated eligibility criteria.
- Businesses must account for higher levy costs and consider workforce planning strategies to optimize hiring under the revised frameworks.
These changes represent Singapore’s strategic effort to balance economic growth with labor market stability. By removing Work Permit employment caps, expanding eligible source countries, and refining S Pass salary and levy structures, Singapore aims to retain skilled foreign workers while ensuring that hiring policies remain competitive. Employers and foreign workers alike should take proactive measures to adapt to these policy shifts and ensure compliance with the evolving regulatory landscape.
As always, don’t hesitate to reach out to your Newland Chase dedicated contact or submit an inquiry here should you have any specific questions regarding this announcement.
This immigration update is for informational purposes only and is not a substitute for legal or scenario-specific advice. Furthermore, it is important to note that immigration announcements are subject to sudden and unexpected changes. Readers are encouraged to reach out to Newland Chase for any case- or company-specific assessments.
