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The Singapore Ministry of Manpower (MOM) recently announced a series of significant adjustments to work permit and foreign labor policies, set to take effect from July 1, 2025. These changes aim to provide greater flexibility for businesses while maintaining Singapore’s competitive edge as a global hub for talent and commerce.

Removal of Maximum Employment Duration & Increase in Age Limit

From July 1, 2025, foreign employees holding work permits will no longer be subject to a maximum employment duration and can work in Singapore until the age of 63. Additionally, the age limit for new applicants will be raised:

• From 50 to 61 years old for non-Malaysian workers
• From 58 to 61 years old for Malaysian workers

This change enables businesses to retain experienced employees, ensuring business continuity, especially amid increasing global economic uncertainties.

Expansion of Non-Traditional Source (NTS) Worker List & Broader Employment Scope

To address labor shortages across industries, the Singapore government has decided to expand the list of Non-Traditional Source (NTS) countries:

• From June 1, 2025, companies will be allowed to hire skilled workers from Bhutan, Cambodia, and Laos.
• From September 1, 2025, NTS workers will be permitted to take on broader job roles, including chefs and heavy vehicle drivers.

This policy provides businesses with more workforce options while strengthening Singapore’s economic ties with these countries.

Approved Sources of Foreign Workers (By Industry)

1. 1. 1. Service Industry

• • • Can hire foreign workers from all job roles from:
      • Malaysia, Mainland China, Hong Kong, Macau, South Korea, Taiwan

1. 1. 2. Manufacturing Industry

• • • Can hire foreign workers only for specific job roles from:
      • Bangladesh, India, Myanmar, Philippines, Sri Lanka, Thailand, Bhutan, Cambodia, Laos
    • Specific job roles include:
      • Licensed hotel housekeeping and luggage porters
      • Food processing workers
      • Manufacturing operators
      • Chefs (previously limited to Indian restaurants only)
      • Heavy vehicle drivers (Only for those holding valid Class 4 and Class 5 licenses before September 1, 2025)

1. 1. 3. Construction Industry

• • • Can hire from all the above-listed sources.

1. 1. 4. Maritime & Shipbuilding Industry

• • • Can hire from all the above-listed sources.

1. 1. 5. Process Industry (Oil, Chemicals, etc.)

• • • Can hire from all the above-listed sources.

Adjustments to Work Pass Policies

1. Extension of the Manpower for Strategic Economic Priorities (M-SEP) Scheme

The M-SEP scheme will be extended for another three years to support business transformation. Companies can hire additional S Pass and Work Permit holders when sending employees overseas for assignments or leadership training programs, enhancing workforce flexibility.

2. ONE Pass Issuance Updates

In 2023, the government issued approximately 3,000 ONE Passes. These top-tier professionals have contributed significantly to local enterprises, startups, social organizations, and educational institutions—bringing advanced technology, management expertise, and enhancing the global competitiveness of Singapore-based businesses.

3. Salary Threshold Adjustments for EP and S Pass Holders

• • Employment Pass (EP):
    • From January 1, 2025, the monthly salary threshold will be:
      • SGD 6,200 for the financial sector
      • SGD 5,600 for other industries
    • No further adjustments are planned in the short term.
  • S Pass:
    • As planned, the final phase of salary threshold adjustments for S Pass holders will take effect in 2025:
      • SGD 3,800 for the financial sector
      • SGD 3,300 for other industries

This marks the final step in the three-phase salary adjustment introduced in 2022.

Foreign Worker Levy Adjustments

From September 1, 2025, the foreign worker levy for all S Pass holders will be standardized at SGD 650, regardless of skill level. This adjustment aims to simplify the levy structure while offering businesses greater flexibility.

COMPASS Framework: Reducing Dependency on Foreign Workers

The Complementarity Assessment Framework (COMPASS) evaluates companies based on workforce diversity and applicant qualifications. Since its implementation:

• 30% of EP applications have met the requirements.
• Companies highly dependent on single-nationality foreign workers have decreased by 7%.
• Companies heavily reliant on foreign employees have declined by 15%.
• More than 4,000 white-collar jobs have been created for local workers.

This framework encourages businesses to optimize workforce structures and create better opportunities for local talent.

Upcoming Review of the Employment Act

The Singapore government plans to review the Employment Act in collaboration with industry stakeholders. The aim is to strike a balance between employee rights and business flexibility, with specific updates to be announced later this year.

Impact & Outlook of Policy Changes

The latest MOM policy adjustments will not only enhance career development opportunities for foreign employees but also increase business flexibility in hiring and workforce management. Amid rising global competition, these measures will strengthen Singapore’s position as a global talent and business hub.

To maximize the benefits of these policy changes, businesses should closely examine the new regulations, plan workforce strategies accordingly, and leverage these policies to enhance long-term competitiveness.