Singapore to remove work permit cap, expand foreign worker opportunities
Singapore is set to introduce major changes to its foreign workforce policies, including removing the cap on how long a migrant worker can stay employed.
From July 1, 2025, work permit holders will no longer be restricted by the current 14- to 26-year employment limit, Manpower Minister Tan See Leng announced in Parliament on March 6, according to The Straits Times.
"With these changes, employers can retain experienced workers who are still able to contribute," Tan stated. However, migrant domestic workers will not be included in this policy change and will continue under their existing employment regulations.
The reforms aim to help businesses retain seasoned rank-and-file workers, supporting broader efforts to create more job opportunities and boost productivity for locals.
The government will also raise the maximum employment age for work permit holders from 60 to 63, aligning it with Singapore's local retirement age. As a result, new work permit applications will now be limited to workers under 61, two years below the new maximum age, according to The Straits Times.
Currently, non-Malaysian applicants must be below 50, while Malaysians can apply up to 58. The adjustment means more experienced workers will be eligible for employment in Singapore.
Tan noted that the number of work permit holders is now 17% above pre-pandemic levels, reflecting businesses’ growing demand for foreign workers.
Expanding hiring options in services and manufacturing
To give businesses greater flexibility in hiring, the Non-Traditional Sources (NTS) Occupation List— which determines which jobs can be filled by workers from specific countries—will be expanded from September 1, 2025, according to The Straits Times.
Newly added roles include:
Heavy vehicle drivers
Various manufacturing operator positions
Cooks, previously limited to Indian restaurants, now expanded to all general cooking roles
"As (NTS Occupation List) workers must be paid at least $2,000, this will not undermine efforts to uplift locals in these occupations," Tan assured.
Additionally, three new countries—Bhutan, Cambodia, and Laos—will be added to the NTS hiring pool from June 1, 2025. Employers in the services and manufacturing sectors will now be able to recruit workers from these nations, broadening the talent pool beyond existing sources such as Bangladesh, India, Myanmar, the Philippines, Sri Lanka, and Thailand.
The Manpower for Strategic Economic Priorities (M-SEP) scheme, launched in 2022, allows companies to hire additional foreign workers beyond their industry’s usual S Pass and work permit quotas. From May 1, 2025, M-SEP approvals will be extended from two years to three years, according to The Straits Times.
More programs will also count toward eligibility, including commitments to send locals for overseas leadership programs. These changes follow recommendations from the Alliance for Action on Business Competitiveness, which released a report in November 2024.
"We are actively reviewing our work permit framework to drive transformation, while nuancing it to support different needs as our workforce changes, and updates will be shared in due course," Tan said.
The final phase of a three-step increase in the S Pass qualifying salary and levy—first announced in 2022—will take effect on September 1, 2025, according to The Straits Times.
For most sectors, the minimum qualifying salary will rise from $3,150 to $3,300, with higher salary requirements for older candidates. In the financial services sector, where wages are generally higher, the minimum salary will increase from $3,650 to $3,800, reaching up to $5,650 for candidates in their mid-40s.
"In light of businesses’ cost challenges, we have moderated the increase," Tan explained.
The S Pass levy rate will also be standardized at $650 for all S Pass holders. However, there will be no further changes to the Employment Pass (EP) salary requirements, which were last updated in January 2024.
To assist businesses in redesigning jobs and strengthening workforce capabilities, the government is launching a $400 million Enterprise Workforce Transformation Package, according to The Straits Times. This initiative includes:
The SkillsFuture Workforce Development Grant, which will consolidate various workforce transformation schemes into one application channel on the Business Grants Portal starting in 2026.
New advisory support through "program partners" to assist businesses in their workforce transformation journey.
Additional financial support for job redesign efforts.
Separately, the Ministry of Manpower (MOM) has formed a Tripartite Workgroup on Human Capital Capability Development, in collaboration with the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF). This group will work on setting national HR standards and strengthening workforce management practices.
Tan acknowledged concerns raised by MPs regarding Singapore's reliance on foreign labor but emphasized that foreign talent plays a crucial role in the economy, according to The Straits Times.
"That scepticism is natural – when we see a foreigner, we think, ‘they are taking a job a local could have had’," he said. "What is harder to see is that, without access to foreigners, the company and its jobs may not even be in Singapore to begin with."
Embed: https://www.youtube.com/watch?v=HqLlwbmW8iY
Over the past decade, Singapore has seen a net increase of 38,000 EP and S Pass holders. However, the number of resident PMETs (professionals, managers, executives, and technicians) grew by 382,000 in the same period.
Tan also highlighted that:
One in three new resident PMETs came from non-PMETs upgrading into higher-skilled roles.
In the financial, professional services, and tech sectors, EP and S Pass holders increased by 18,000, while resident PMETs in these industries grew by 172,000.
As of 2024, there were three to six resident PMETs for each EP or S Pass holder in these sectors.
"We should never develop a ‘Singaporean only’ mentality because this would deprive us of talent needed to anchor global businesses that benefit Singaporeans," he cautioned in according to The Straits Times.
