Singapore Work Permit Guide for Employers

Singapore Work Permit Guide for Employers

The Singapore Work Permit scheme allows semi-skilled migrant workers from approved source countries to pursue employment in the country’s booming and promising niches such as construction, manufacturing, marine shipyard, process, and services. However, since the entry criteria are substantially lower than other work passes, the scheme entails different expectations and specific restrictions for hiring companies, such as levies, quotas, a bond, and adequate health care for all Work Permit holders. The goal is to defend the local labor market in Singapore for semi-skilled workers. 

Keep reading to find out more about the Singapore Work Permit scheme.

General conditions for the Singapore Work Permit

As an employer, here is a set of Work Permit conditions you must comply with during their employment of your foreign employees:

  • You can only hire workers with a valid Work Permit;
  • You must pay workers their fixed monthly salaries declared to MOM;
  • Workers must receive their salaries and the cost of their upkeep and maintenance, including the cost of medical treatment;
  • Workers are entitled to proper housing;
  • You must buy and maintain medical insurance for each worker to cover in-patient care and surgery costs;
  • From the 1st of April 2022, you need to purchase and maintain the Primary Care Plan for each worker to cover out-patient primary care costs;
  • You are obliged to send workers for a medical examination by a Singapore-registered doctor (their Work Permits will be revoked if they are medically unfit);
  • You must pay the monthly foreign worker levy for each worker;
  • You must buy a security bond for each non-Malaysian worker; and
  • You are not allowed to demand or receive any sum or other benefit from an employment agency or any other person in connection with the employment or change in employment of a worker.

Work Permit holders must comply with the following rules:

  • WP holders must work solely for the company and occupation listed on their Work Permit card;
  • They are not allowed to work in any other company or start their own;
  • They must reside only at the address set by the employer at the start of employment (If they intend to relocate, they must notify their employer);
  • They must carry their Work Permit card with them at all times and show it to any public officer who asks for it;
  • They may not marry a Singapore citizen or permanent resident in or outside Singapore without MOM’s approval (this rule applies even after their Work Permits have expired, been canceled, or revoked); and
  • They may not get pregnant or deliver a child in Singapore during the validity of their Work Permit unless they are already married to a Singapore citizen or permanent resident with MOM’s approval (this rule also applies even after their Work Permits have expired, been canceled, or revoked).

When the employment is completed or terminated

When the employment ends due to termination, completion, or resignation, you must:

  • cancel the Work Permit within a week of the worker’s last day of notice;
  • pay for their repatriation, which includes purchasing a plane ticket with checked luggage allowance; and
  • settle all outstanding employment issues, including salary payment.

Sector-specific eligibility criteria for the Singapore Work Permit

The following are the eligibility criteria for specific sectors, including construction, manufacturing, marine shipyard, process, and services.

1. Singapore Work Permit requirements for the construction sector

You can only hire foreign construction workers who meet the requirements for source nations or regions, age at the time of application, and the maximum period of employment.

Source countries or regions

You can hire construction workers from these countries or regions:

  • Malaysia
  • People’s Republic of China (PRC)
  • Non-traditional sources (NTS): India, Sri Lanka, Thailand, Bangladesh, Myanmar, and the Philippines
  • North Asian sources (NAS): Hong Kong (HKSAR passport), Macau, South Korea, and Taiwan

Age requirements

  • Construction workers must be at least 18 years old
  • Malaysian construction workers must be below 58 years old
  • Non-Malaysian construction workers must be below 50 years old

Maximum period of employment

The maximum number of years a worker can work in Singapore on a Work Permit in the construction sector is as follows:

Source country/region

Type of workers

Maximum period of employment

NTS, PRC

Basic-Skilled (R2),

i.e., those holding SEC, SEC(K).

14 years,

NTS, PRC

Higher-Skilled (R1),

i.e., those who have been upgraded through various means.

26 years

NAS, Malaysia

All sectors

No maximum period of employment.

 Note that all workers are only allowed to work until 60 years old.

The quota and levy rates for the construction sector

You can hire seven Work Permit holders for every local employee who obtains the Local Qualifying Salary under the construction industry quota. In addition to quota, NTS and PRC personnel must also meet man-year entitlement (MYE) criteria (Malaysian and NAS personnel are exempt from MYE). They may be eligible for a waiver If they have at least three years of construction experience in Singapore.

The levy rates are as follows:

Tier

Monthly

Daily

Malaysians and NAS – Higher-Skilled

$300

$9.87

Malaysians and NAS – Basic-Skilled

$700

$23.02

NTS and PRC – Higher-Skilled, on MYE

$300

$9.87

NTS and PRC – Basic-Skilled, on MYE

$700

$23.02

NTS and PRC – Higher-Skilled, MYE waiver

$600

$19.73

NTS and PRC – Basic-Skilled, MYE waiver

$950

$31.24

Note: From the 1st of January 2024, there will be changes to the foreign workforce policies for the construction sector.

Required safety courses

Before their Work Permits are given, migrant workers in the construction industry must complete one of the following safety courses:

  • Construction Safety Orientation Course (CSOC)
  • Apply Workplace Safety and Health in Construction Sites

For additional information about the Work Permit eligibility criteria for the construction sector, click here.

2. Singapore Work Permit requirements for the manufacturing sector

If your company fits all of the following criteria, it can be classified as manufacturing:

  • Has a valid factory notification or registration
  • Use machinery to manufacture or produce items from raw materials
  • Operates in a designated industrial setting area
  • Has a valid Singapore Food Agency (SFA) license to operate a food processing establishment or slaughter-house (for food processing companies)

To hire foreign workers in the manufacturing industry, you must meet specified standards for company activity, worker’s source nation or region, quota, and levy. 

Source countries or regions

  • Malaysia
  • People’s Republic of China (PRC)
  • North Asian sources (NAS): Hong Kong (HKSAR passport), Macau, South Korea, Taiwan

Age requirements

  • Manufacturing workers must be at least 18 years old
  • Malaysian manufacturing workers must be under 58 years old
  • Non-Malaysian manufacturing workers must be under 50 years old

Maximum period of employment

The maximum number of years a migrant worker can work in Singapore on a Work Permit in the manufacturing sector is as follows:

Source country/region

Types of workers

Maximum period of employment

PRC

Basic-skilled (R2)

14 years

PRC

Higher-skilled (R1)

22 years

NAS, Malaysia

All

No maximum period of employment

The quota and levy rates for the manufacturing sector

The quota and levy rates for the manufacturing sector are as follows:

Quota

Basic-skilled – monthly

Basic-skilled – daily

Higher-skilled – monthly

Higher-skilled – daily

Tier 1:

Up to 25% of the total workforce

$370

$12.17

$250

$8.22

Tier 2:

Above 25% to 50% of the total workforce

$470

$15.46

$350

$11.51

Tier 3:

Above 50% to 60% of the total workforce

$650

$21.37

$550

$18.09

 Required safety courses

Before their Work Permits are issued, foreign workers who handle metals and machines in the metalworking industry must complete one of the following safety courses:

  • Metalworking Safety Orientation Course (MSOC)
  • Apply Workplace Safety and Health in Metal Work

For more detailed information about the Work Permit eligibility criteria for the manufacturing sector, click here.

3. Singapore Work Permit requirements for the marine shipyard sector

The Singapore marine shipyard sector refers to shipyards and their contractors engaged in shipbuilding or ship repair activities. To be labeled as a maritime shipyard, your company must meet both of the following criteria:

  • Your principal business activity is shipbuilding or ship repair
  • You qualify as a shipyard or shipyard-sponsored contractor

Source countries or regions

You can hire marine shipyard workers from these countries or regions:

  • Malaysia
  • People’s Republic of China (PRC)
  • Non-traditional sources (NTS): India, Sri Lanka, Thailand, Bangladesh, Myanmar, and the Philippines
  • North Asian sources (NAS): Hong Kong (HKSAR passport), Macau, South Korea, and Taiwan

Age requirements

  • Marine shipyard workers must be at least 18 years old
  • Malaysian marine shipyard workers must not be older than 57 years old
  • Non-Malaysian marine shipyard workers must not be older than 49 years old

Maximum period of employment

The maximum number of years a marine shipyard worker can work in Singapore on a Work Permit in the marine shipyard sector is as follows:

Source country/region

Types of workers

Maximum period of employment

NTS & PRC

Basic-skilled (R2)

14 years

NTS & PRC

Higher-skilled (R1)

26 years

NAS & Malaysia

All

No maximum period of employment.

 The quota and levy rates for the marine shipyard sector

You can hire 3.5 Work Permit holders for every local employee who obtains the Local Qualifying Salary under the marine shipyard industry quota. Below is the levy rates:

Category

Monthly levy rate

Daily levy rate

Higher-skilled

$300

$9.87

Basic-skilled

$400

$13.16

Required safety courses

Before they can get their Work Permits are issued, migrant employees in the marine shipyard sector must complete one of the following safety courses:

  • Shipyard Safety Instruction Course for Workers (General Trade) (SSICGT)
  • Apply Workplace Safety course and Health in Shipyard (General Trade)

For more detailed information about the Work Permit requirements for the marine shipyard sector, click here.

4. Singapore Work Permit requirements for the process sector

Foreign workers employed for the process construction and maintenance (PCM) work are limited to operations relating to plant equipment building, preventive, and breakdown repair. They are not permitted to participate in plant operations (e.g., plant equipment operation, warehousing, packing, etc.) or peripheral services (grass cutting, cleaning of offices, roads, waste disposal, etc.).

Source countries or regions

You can hire PCM workers from these countries or regions:

  • Malaysia
  • People’s Republic of China (PRC)
  • Non-traditional sources (NTS): India, Sri Lanka, Thailand, Bangladesh, Myanmar, and the Philippines
  • North Asian sources (NAS): Hong Kong (HKSAR passport), Macau, South Korea, and Taiwan

Age requirements

  • PCM workers must be at least 18 years old
  • Malaysian PCM workers must be younger than 58 years old
  • Non-Malaysian PCM workers must be younger than 50 years old

Maximum period of employment

The maximum number of years a worker can work in Singapore on a Work Permit in the process sector is as follows:

Source country/region

Types of workers

Maximum period of employment

NTS & PRC

Basic-skilled (R2)

14 years

NTS & PRC

Higher-skilled (R1)

26 years

NAS & Malaysia

All sectors

No maximum period of employment.

 The quota and levy rates for the process sector

Under the process sector quota, you can hire seven Work Permit holders for every local employee who earns the Local Qualifying Salary.

The levy rates are as follows:

Tier

Monthly

Daily

Higher-skilled, on MYE

$300

$9.87

Basic-skilled, on MYE

$450

$14.80

Higher-skilled, on MYE waiver

$600

$19.73

Basic-skilled, on MYE waiver

$750

$24.66

Note: Changes to the process sector’s foreign workforce policies will take effect on January 1, 2024.

Required safety courses

Before being able to work in the process industry, all workers must complete the following safety courses:

  • Oil Petroleum Safety Orientation Course (OPSOC)
  • Construction Safety Orientation Course (CSOC)

For additional information about the Work Permit requirements for the process sector, click here.

5. Singapore Work Permit requirements for the services sector

If your company has registered any of the following as its primary business activity, it is considered to be in the services sector:

  • Financial, insurance, real estate, Infocomm, and business services,
  • Transport, storage, and communications services,
  • Commerce (retail and wholesale trade),
  • Community, social and personal services (excluding domestic workers),
  • Hotels, or 
  • Restaurants, coffee shops, food courts, and other approved food establishments (except for food stalls or hawker stalls).

Only operators with food shop licenses issued by the Singapore Food Agency (SFA) are allowed to employ migrant workers. The SFA license must bear the name of the company, sole proprietor, or partner.

Source countries or regions

You can hire services workers from these countries or regions:

  • Malaysia
  • People’s Republic of China (PRC)
  • Non-traditional sources (NTS): India, Sri Lanka, Thailand, Bangladesh, Myanmar, and the Philippines
  • North Asian sources (NAS): Hong Kong (HKSAR passport), Macau, South Korea, and Taiwan

Age requirements

  • Services workers must be at least 18 years old
  • Malaysian services workers must be below 58 years old
  • Non-Malaysian services workers must be below 50 years old

Maximum period of employment

The maximum number of years a worker can work in Singapore on a Work Permit in the services industry is as follows:

Source country/region

Types of workers

Maximum period of employment

PRC

Basic-skilled (R2)

14 years

PRC

Higher-skilled (R1)

22 years

NAS, Malaysia

All

No maximum period of employment.

The quota and levy rates for the services sector

The number of Work Permit holders that you can hire is restricted by a quota (or dependency ratio ceiling, DRC) and subject to a levy. 

The DRC for the services sector is 35%. The levy rates are tiered so those that hire near the maximum quota pay a larger levy. The levy rate and tiers for the services industry, are as follows:

Quota

Basic-skilled – monthly

Basic-skilled – daily

Higher-skilled – monthly

Higher-skilled – daily

Tier 1:

Up to 10% of the total workforce

$450

$14.80

$300

$9.87

Tier 2:

Above 10% to 25% of the total workforce

$600

$19.73

$400

$13.16

Tier 3:

Above 25% to 35% of the total workforce

$800

$26.31

$600

$19.73

For further information about the Work Permit requirements for the services sector, click here.

Applying for a Work Permit

Biz Atom can help you apply for Work Permits for your foreign workers on behalf of your company. The Work Permit application process will be done online so you and your employees don’t have to be present in Singapore on the day of the application. 

The Work Permit duration can be valid up to two years, but it may be shorter depending on:

  • The validity of the worker’s passport: Work Permit validity will be one month before the passport expires
  • The duration of the security bond: Work Permit validity will be two months before the security bond expires

A Work Permit can be renewed online six to eight weeks before it expires. You must also fulfill specific measures before renewing, such as verifying your quota and extending the worker’s security bond and medical insurance.

If you need more information regarding the Singapore Work Permit scheme or other work visa schemes, please contact us and we will be more than happy to assist you.

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