The Singapore government is set to introduce changes to its work permit policies to enhance employer flexibility in hiring and retaining foreign talent.
The changes, effective from July 1st, 2025, are aimed at expanding opportunities for employers to better manage their workforce needs while ensuring that Singapore continues to remain competitive in the global job market.
Starting July 1st, work permit holders will no longer face a maximum employment period, Channel News Asia (CNA) cites.
Previously, the duration ranged from 14 to 26 years, depending on factors such as skill level, sector, and country of origin.
This adjustment brings work permit holders in line with the current policies applied to workers from Malaysia and four North Asian countries: Hong Kong, Macau, South Korea, and Taiwan, who have no restrictions on their period of employment.
Increased maximum employment age
Along with the end of the maximum employment period, the government will also raise the employment age for work permit holders. The maximum employment age, according to reports, will increase from 60 to 63, which is aligned with Singapore’s official retirement age.
Additionally, the age limit for new work permit applicants will rise to 61 from the previous 50 for non-Malaysians and 58 for Malaysians. These changes will grant businesses the flexibility to retain experienced workers for a longer period.
Broadened sources for workers
To address the ongoing demand for labor, reports cite that the Ministry of Manpower (MOM) will expand the list of sources for work permit holders to include other countries.
Further changes will take effect from September 1st, when the range of eligible occupations for workers in manufacturing and services will expand to include roles such as cooks, heavy vehicle drivers, and manufacturing operators.
S Pass qualifying salary increased
To ensure that employers hire skilled workers, the government will also raise the qualifying salary for S Pass holders.
The S Pass is a work permit issued by the Singapore government for mid-skilled foreign workers in specific sectors, such as construction, manufacturing, marine, and services. It allows employers to hire foreign employees who meet certain qualifications, including a minimum salary requirement and relevant educational or skill-based criteria.
As cited in the report, from September 1st, 2025, the qualifying salary will rise from S$3,150 to S$3,300.
Additionally, the qualifying salary for the financial services sector will increase from S$3,650 to S$3,800, with further increases based on age.
Minister Tan See Leng’s remarks on foreign talent
Manpower Minister, Dr. Tan See Leng, addressed concerns regarding foreign talent during a parliamentary session, emphasizing that foreign workers are integral to Singapore’s economy. He stated,
“When we see a foreigner, we think, ‘they are taking a job a local could have had.’ But what is harder to see is that, without the access to foreigners, the company and its jobs may not even be in Singapore to begin with.”
“We should never develop a ‘Singaporean only’ mentality, because this would deprive us of talent needed to anchor global businesses that benefit Singaporeans,” he said.
He added that over the past decade, while the number of employment pass and S Pass holders grew by 38,000, the number of local professionals, managers, executives, and technicians (PMETs) grew by 382,000, highlighting the complementary nature of foreign and local talent in driving economic growth.
Additional adjustments to employment pass and M-SEP scheme
In addition to work permit changes, the MOM, as cited in the report, will continue refining the Complementarity Assessment Framework (COMPASS), which assesses employment pass applications. The ministry reported a positive trend in companies reducing their dependence on foreign workers from a single nationality.
These adjustments mark an important step in ensuring that Singapore remains an attractive place for businesses while supporting the development of its workforce.
